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2000 Supreme(Del) 897

High Court Of Delhi
UNITED INK AND VARNISH COMPANY LIMITED - Appellant
Versus
STATE OF DELHI - Respondent
CRIMINAL APPEAL 1206 of 2000
Decided On : 10/20/2000

Advocates Appeared:
A.K.Singla, ANIL ARORA, ARUN AGRAWAL, PAVAN BAHL, RAJIV AVASTHI, Sima Gulati

The main legal principle established is the need for expeditious disposal of complaints under the Negotiable Instruments Act to achieve the legislative purpose and object of the Act.

Headnote:

Negotiable Instruments Act - Delay in Adjudication - Section 138/141 - 138, 142

Fact of the Case:

The petitioner filed a complaint under Section 138/141 of the Negotiable Instruments Act due to the dishonour of a cheque. The main grievance was the delay in adjudicating the complaint, which defeated the purpose of the Act.

Finding of the Court:

The Court found that the delay in adjudicating complaints under the Negotiable Instruments Act defeated the legislative purpose and object of the Act.

Issues: The main issue was the delay in adjudicating complaints under the Negotiable Instruments Act, which defeated the purpose of the Act.

Ratio Decidendi: The Court emphasized the need for expeditious disposal of complaints under the Negotiable Instruments Act to achieve the legislative purpose and object of the Act.

Final Decision: The Court issued directions to streamline the process of adjudication of complaints under the Negotiable Instruments Act, emphasizing expeditious disposal of complaints and assigning exclusive work to judicial officers for a specified period.

Dalveer Bhandari

( 1 ) AS common questions of law are involved in these petitions, therefore, all these petitions are disposed of by this judgment. The detailed facts of only one petition Crl. M. (M) No. 1432/2000 are recapitulated.

( 2 ) RESPONDENT No. 2 [m/s. Howard Ink. Co. (P) Ltd. ] and respondent No. 3 (Shri S. R. Narula, the Managing Director of M/s. Howard Ink Co. Pvt. Ltd.) issued cheque dated 31. 1. 2000 in the sum of Rs 6,75,000. 00 which was dishonoured on presentation. Thereafter the petitioner sent a statutory notice. Despite the notice dated 9. 3. 2000 when the payment was not made, the petitioner (United Ink and Varnish Co. Ltd.) filed a complaint under Section 138/141 of the Negotiable Instruments Act. On 28. 4. 2000, the case was adjourned by the Court for recording of the complainant s evidence for 2. 4. 2001.

( 3 ) THE main grievance of the petitioner in this petition is that the entire purpose of filing the complaint is defeated, if the Trial Court gives an 11 months long date for recording of the complainant s evidence. In another matter Madan Agarwal v. Auric Agencies (P) Ltd. , Cri. M. (M) No. 3839/2000 (pertaining to a complaint under Section 138 of the Negotiable Instruments Act) the Trial Court has adjourned the case for a period of 19 months for further proceedings. This petition is filed primarily to bring to the notice of this Court that the Trial Courts are not adjudicating these complaints expeditiously and consequently the entire legislative purpose and object of incorporating these provisions stand defeated.

( 4 ) THE provisions of the penalties in case of dishonour of cheque for insufficient funds were inserted in Chapter XVII comprising of Sections 138 to 142 with effect from 1. 4. 1989 by the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 (66 of 1988 ). This Chapter has been inserted with a view to enhance the acceptability and credibility of cheques in settlement of liabilities by making the drawer liable for the penalties, in case of bouncing of cheques due to insufficiency of funds in the accounts or for the reason that it exceeds arrangement made by the drawer with adequate safeguards to prevent harassment of honest drawers.

( 5 ) RELEVANT provisions of the said Act are reproduced. Section 138 of the Negotiable Instruments Act, 1988 reads as under:

"138. Dishonour of cheque for insufficiency, etc. , of funds in the account. Where any cheque drawn by a person on any 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 the 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 maybe, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. Explanation: For the


































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