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1993 Supreme(Cal) 73

High Court Of Calcutta
Gitesh Ranjan Bhattacharjee
ANCON ENGINEERING CO PVT LTD - Appellant
Versus
AMITAVA GOSWAMI - Respondent
CRI. REV.  2532  Of  1992
Decided On : 02/17/1993

Advocates Appeared:
A.K.Ghosh, Biswanath Sanyal, KEYA BANERJI, SUNRIT DEB

1. Presentation of a cheque to the bank for the purpose of prosecution under section 142 of the Negotiable Instruments Act can be made more than once, provided that such presentation occurs within six months from the date on which the cheque was drawn or within the period of its validity, whichever is earlier. 2. Part-payment of the cheque amount does not affect the cause of action of the payee to file a complaint before court under section 138 read with section 142.

Headnote:

NEGOTIABLE INSTRUMENTS ACT - SECTION 138 - INTERPRETATION - DISHONOUR OF CHEQUE - PRESENTATION TO BANK - LIMITATION - PART-PAYMENT.

Fact of the Case:

The petitioner issued four post-dated cheques towards the discharge of their liabilities against the dues of the complainant. The cheques were presented to the bank on 13th June, 1992 and 10th July, 1992 but were dishonoured. On 14th July, 1992 the complainant issued notice to the drawer of the cheques demanding payment of the said aggregate amount of the cheques, i. e. Rs. 36,842/-. On 28th July, 1992 the drawer of the cheques forwarded a pay order for Rs. 5,000/- only to the payee. The payee filed complaint under sections 138 and 141 of the Negotiable Instruments Act before the learned Chief Metropolitan Magistrate, Calcutta on the 12th of August, 1992.

Finding of the Court:

The court held that the complainant can prosecute the drawer of the cheque on the basis of a presentation of the cheque in the bank which has culminated into a cause of action for him under clause (c) of the proviso to section 138 and any earlier abortive presentation of the cheque is m be kept out of consideration for the purpose of application of section 138.

Issues: 1. Whether a cheque can be presented to the bank more than once for the purpose of prosecution under section 142 of the Negotiable Instruments Act? 2. Whether part-payment of the cheque amount affects the cause of action of the payee to file a complaint before court under section 138 read with section 142?

Ratio Decidendi: 1. The court held that section 138 of the Negotiable Instruments Act does not contemplate and prescribe presentation of the cheque to the bank once only and not more than once. The only limitation prescribed by section 138 is that such presentation on which the complainant seeks to base the prosecution must have occurred within six months from the date on which the cheque was drawn or within the period of its validity, whichever was earlier. 2. The court held that any part-payment will not affect the cause of action of the payee to file a complaint before court under section 138 read with section 142. Clause (b) of the proviso to section 138 requires that on dishonour of the cheque by the bank the payee shall make a demand for the payment of the 'said amount of money' by giving a notice in writing to the drawer of the cheque which means that the notice shall make a demand for payment of the amount mentioned in the cheque. Clause (c) of the proviso refers clearly to failure of the drawer of such cheque to make payment of the 'said amount of money' to the payee within fifteen days of receipt of the said notice.

Final Decision: The court dismissed the revisional application and held that the proceedings pending in the court below shall not be interfered with.

G. R. BHATTACHARJEE, J.

( 1 ) A question of interpretation of section 138 of the Negotiable Instruments Act, 1881 has been raised in this revisional application. The petitioner no. 2 as Director of the petitioner no. 1 Company issued the following four cheques towards the discharge of their liabilities against the dues of the opposite party complainant, viz. (1) Cheque No. 850816 dated 15-5-92 for Rs. 14,356/-, (2) Cheque No. 850817 dated 10-6-92 for Rs. 2,746/-, (3) Cheque No. 850818 dated 10-6-92 for Rs. 8,000/-, (4) Cheque No. 850819 dated 10-7-92 for Rs. 11,740/ -.

( 2 ) THE total amount under those four cheques was Rs. 36,842/ -. Those were however all post-dated cheques. The first three cheques were presented to the Bank on 13th June, 1992 but they were returned unpaid by the drawee bank with the remark 'funds insufficient'. The cheques were again presented to the bank on 10th July, 1992 but this time also they were dishonoured by the bank. On 13th July, 1992 the complainant payee received a letter dated the 7th July, 1992 containing a request of the drawer of the cheques to hold the cheques for the time being. On 14th July, 1992 the complainant payee issued notice to the drawer of the cheques demanding payment of the said aggregate amount of the cheques, i. e. Rs. 36,842/- and the said notice was duly received by the drawer of the cheques on the 16th of July, 1992. On 28th July, 1992 the drawer of the cheques forwarded a pay order for Rs. 5,000/- only to the payee. The payee however filed complaint under sections 138 and 141 of the Negotiable Instruments Act before the learned Chief Metropolitan Magistrate, Calcutta on the 12th of August, 1992. On 20th November, 1992 the complainant payee encashed the pay order for Rs. 5,000/- earlier forwarded to him by the drawer of the cheques.

( 3 ) FOR appreciating the arguments made by the learned Advocates for both sides in this case it is necessary first to go through the provisions of sections 138 and 142 of the Negotiable Instruments Act, 1881 which are quoted below :"sec. 138. Dishonour of cheque for insufficiency etc. of funds in the account.-Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing, to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both :provided that nothing contained in this section shall apply unless- (A)the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier; (B)the payee or the holder in due course of the cheque, as the case may be makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within fifteen days of the receipt or information by him from the bank regarding the return of the cheque as unpaid;and (C)the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. Explanation-For the purposes of this section, 'debt or other liability' means a legally enforceable debt or outer liability. "sec. 142. Cognizance of offences.-Notwithstanding anything contained in the Code of Criminal Procedure, 1973,- (a)no court shall take cognizance of any offence punishable under section 138 except upon a complaint, i








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