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2021 Supreme(Del) 1945

IN THE HIGH COURT OF DELHI AT NEW DELHI
Suresh Kumar Kait, J.
Simranpal Singh Suri - Appellant
Versus
State & Anr. - Respondents
Criminal Miscellaneous Case No. 2536 of 2020; Criminal Miscellaneous Application No. 17950 of 2020
Decided On : 01-02-2021

Advocates appeared:
M.S. Oberoi, Advocate, Siddharth Khattar, Advocate, Gaurav Rohilla, Advocate, Izhar Ahmed, Advocate, Anil Kumar Dhupar, Advocate

Headnote:

NI Act - Jurisdiction of Metropolitan Magistrate - Calculation of limitation period under Section 138 of NI Act - Legal principles and interpretations discussed in the judgment include the calculation of a calendar month, exclusion of the first day and inclusion of the last day, and the application of the British calendar in computing the period prescribed under Section 138 of the NI Act. The court also referred to the principles of excluding the day from which the period is to be reckoned, as incorporated in the Limitation Act and the General Clauses Act. The judgment emphasized the need to exclude the day on which the cause of action arose while calculating the period of one month prescribed under Section 142(b) of the NI Act. The court relied on the decisions in Rameshchandra Ambalal Joshi v. State of Gujarat, SIL Import, USA v. Exim Aides Silk Exporters, M/s Saketh India Limited & Ors. v. M/s. India Securities Limited, and Econ Antri Ltd. v. Rom Industries Ltd. to establish the correct legal principles for calculating the limitation period under the NI Act.

Fact of the Case:

The petitioner sought dismissal of a complaint case under Section 138 of the NI Act, challenging the summoning order issued by the Metropolitan Magistrate and upheld by the Revisional Court. The complaint alleged dishonor of a cheque issued by the petitioner for repayment of a loan amount borrowed from the respondent. The petitioner contended that the Metropolitan Magistrate lacked jurisdiction and the complaint was filed beyond the limitation period.

Finding of the Court:

The court found that the impugned orders were erroneous in computing the limitation period and set them aside. It held that the complaint was filed one day after the expiration of the limitation period and was not accompanied by an application for condoning the delay, thereby allowing the petition and disposing of the case.

Issues: The issues involved the jurisdiction of the Metropolitan Magistrate to take cognizance of the complaint under Section 138 of the NI Act, the calculation of the limitation period, and the requirement for an application under Section 142(b) of the NI Act for condoning the delay in filing the complaint.

Ratio Decidendi: The court's decision was based on the correct interpretation of legal principles for calculating the limitation period under the NI Act, as established in the referenced judgments. It emphasized the exclusion of the first day and inclusion of the last day, the application of the British calendar, and the need to exclude the day on which the cause of action arose while computing the period of one month prescribed under Section 142(b) of the NI Act.

Final Decision: The impugned orders were set aside, and the petition was allowed, disposing of the case in favor of the petitioner.

JUDGMENT

Suresh Kumar Kait, J. - The present petition has been preferred by the petitioner seeking dismissal of complaint case No. 7834/2019, titled as "Gurbachan Singh Vs. Simranpal Singh Suri" and for setting aside the order dated 26.09.2019 passed by the learned Metropolitan Magistrate summoning the petitioner in the complaint in question as well as order dated 27.11.2020 passed by the learned Revisional Court upholding the summoning order.

2. As per the complaint, petitioner had borrowed a sum of Rs.10 Lacs, from respondent No.2, who had lent the same vide two cheques bearing Nos. 697399 and 697400, dated 26.02.2016, amounting to Rs.5 Lacs each, drawn on Punjab National Bank, Delhi Trade Finance Branch, Sadar Bazar, Delhi. It is stated in the complaint that when in April, 2019 i.e. after approximately three years, respondent No.2 approached petitioner for repayment of loan amount, petitioner assured that he will return the entire amount and in order to discharge his part liability, issued a cheque bearing No.032753, dated 01.05.2019, amounting to Rs.10 Lacs, drawn on ICICI Bank, C Block, Janakpuri Branch, New Delhi, which was dishonored on presentation in the bank with the remarks "funds insufficient" and was returned vide bank advice memo dated 22.05.2019. It is the case of complainant that when he informed petitioner about dishonour of the cheque, he paid no heed to his complaint and thereafter, the complainant served a legal demand notice dated 31.05.2019 upon him and despite service of demand notice through speed post as well as approved courier on 03.06.2019, when petitioner failed to make the payment, complaint under Section 138 of NI Act was instituted against the petitioner on 20.07.2019 before the learned Metropolitan Magistrate. The learned Metropolitan Magistrate took cognizance of the offence and vide impugned order dated 26.09.2019 summons were directed to be issued against the petitioner.

3. The order dated 26.09.2019 passed by the Metropolitan Magistrate, was challenged by petitioner vide Criminal Revision Petition No. 762/2019 and the Revisional Court vide impugned order dated 27.11.2020 dismissed the said petition with cost of Rs.50,000/-, which is under challenge in this petition.

4. At the hearing, learned counsel for the petitioner submitted that the learned Metropolitan Magistrate had no jurisdiction to take cognizance of the complaint u/s 138 Negotiable Instruments Act (NI Act) filed by respondent No.2, without that being accompanied by application under Section 142 (b) NI Act for condoning the delay in filing the complaint. Learned counsel for petitioner further submitted that learned Metropolitan Magistrate, while taking cognizance of the complaint, did not take note of the fact that the complaint was filed beyond the limitation period and did not rightly calculate the days and therefore, direction to issue summons to the petitioner, is illegal and without jurisdiction.

5. In support of his case, learned counsel for petitioner relied upon decision of Hon'ble Supreme Court in Rameshchandra Ambalal Joshi Vs. State of Gujarat, (2014) 11 SCC 759, which reads as under:-

    "21. At this stage, we would also like to refer to Halsbury's Laws of England, Vol. 37, 3rd Edn., Para 143 at p. 83 which provides for calculation of a calendar month:

      "143. Calendar month running from arbitrary date.-When the period prescribed is a calendar month running from any arbitrary date the period expires with the day in the succeeding month immediately preceding the day corresponding to the date upon which the period starts; save that, if the period starts at the end of a calendar month which contains more days than the next succeeding month, the period expires at the end of the latter month."

        22. Drawing a conclusion from the abovementioned authorities, we are of the opinion that the use of word "from" in Section 138(a) requires exclusion of the first day on which the cheque was drawn and inclusion of the last day within which such ac

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