HIGH COURT OF CALCUTTA
Basudeva Panigrahi, J.
Darshan Singh
Versus
State of West Bengal & Ors.
C.R.R. No. 2239 of 1999 and C.R.A.N. No. 22 of 2000
Decided On : April 26, 2000
NEGOTIABLE INSTRUMENTS ACT, 1881 - SECTION 138 - LIMITATION - COMPUTATION - FROM DATE OF RECEIPT OF NOTICE BY DRAWER, NOT FROM DATE OF RECEIPT OF ACKNOWLEDGMENT DUE CARD BY COMPLAINANT.
Fact of the Case:
The accused in a complaint case under section 138 of the Negotiable Instruments Act filed an application for quashing the criminal case on the ground that the complaint was barred by limitation. The complainant/opposite party argued that the period of limitation of 30 days should run not from the date of service of notice but from the date of knowledge of such service by the complainant.
Finding of the Court:
The court held that the complaint was prima facie barred by limitation under section 142 of the Act. The court relied on the Supreme Court's decision in Sil Import, USA vs. EXIM Aides Silk Products Silk Exporters, Bangalore, which held that the cause of action for a complaint under section 138 of the Act accrues from the date of receipt of the notice by the drawer, not from the date of receipt of the acknowledgment due card by the complainant.
Issues: Whether the complaint was barred by limitation.
Ratio Decidendi: The court held that the period of limitation for filing a complaint under section 138 of the Negotiable Instruments Act runs from the date of receipt of the notice by the drawer, not from the date of receipt of the acknowledgment due card by the complainant. This is because the cause of action for a complaint under section 138 accrues from the date of receipt of the notice by the drawer.
Final Decision: The court allowed the application and quashed the criminal case.
Basudeva Panigrahi, J.
The accused in complaint case No. C/221 of 1999 filed under section 138 of the Negotiable Instruments Act has filed this case under section 482 of the Code of Criminal Procedure for quashing of the criminal case mentioned before. At the time of hearing of the rule an interim stay of further proceeding of the criminal procedure was passed. Therefore, the complainant/opposite party being aggrieved by such interim order has filed an application for vacating the same.
2. The learned advocate appearing for both the parties have however, agreed that instead of taking of the vacating application, they suggested to take up the original application for quashing of the proceeding. Therefore, the matter was taken up for hearing. The complainant/opposite party was the petitioner's financier for purchasing a truck on higher purchase agreement. Accordingly he availed of the loan to purchase the truck. It was agreed by and between the parties that the petitioner shall pay higher charges in respect of the loan for 24 monthly installments to the opposite party No.2 commencing from 29th May, 1997. But however, a cheque. sent by the petitioner was bounced. Therefore, the opposite party No.2 sent a notice to the petitioner calling upon the latter to clear up the dues. Even after receipt of the said notice when the petitioner failed to discharge his liability towards the bounced cheque, the opposite party No.2 was, therefore, obliged to file a complaint under section 138 of the Negotiable Instruments Act. Pursuant to the said complaint process was issued and accordingly the petitioner appeared before the Court below. But being aggrieved by such initiation of the criminal proceeding he has filed this case for quashing of the case.
3. Mr. S.B. Roy, the learned advocate appearing for the petitioner has strongly contended that since the criminal complaint was barred by limitation as it was not filed within 15 days after service of notice, therefore, the learned Additional Chief Judicial Magistrate ought to have dismissed the complaint on the ground of limitation. Mr. Roy has further stressed that the petitioner received the notice on 18.1.1999, therefore, the opposite party No.2 ought to have filed complaint within 30 days from the date of service of notice upon the petitioner.
4. Mr. Mukherjee, the learned advocate appearing for the complainant/ opposite party No.2 has repelled the said contention of Mr. Roy by submitting that the period of limitation of 30 days should run not from the date of service of notice but from the date of knowledge of such service by the complainant. In this case the opposite party No.2 only derived knowledge of such service after receipt of the 'acknowledgment due card' from the post office on 09.4.1999 and, therefore, the complaint was filed within 30 days therefrom. In this background it cannot be said that the complaint was barred by limitation.• 5. While examining the contention raised by both parties it is to be seen the legislative intention of filing a complaint under section 138 of the Negotiable Instruments Act. Which is quoted as follows:
"Provided that nothing contained in this section shall apply unless-
(a) ******
(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 of 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."
6. In this case necessary dates may be stated. The opposite party No.2 deposited the cheque for encashment on 18.12.1998 and it was dishonoured on the ground that the petitioner did not have enough cash in the bank. The memo of dishonouring of the che
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