Judges : R.BASANT
K.K.Ravi - Appellant
Versus
V.D.Kuttappan - Respondent
Case No : WP(C) No.11638 of 2007(I)
Decided On : 05/29/2007
Advocates Appeared :
For the Petitioner: R. Vishnu, Advocate. For the Respondents: Government Pleader.
Sec.138 of the Negotiable Instruments Act - Notice of Demand - Proviso (b) - Proviso (c)
Fact of the Case:
The case involved the issue of whether the notice of demand under proviso (b) to Sec.138 of the Negotiable Instruments Act should be issued such that the drawer shall receive the notice within the period of 30 days or if it is sufficient if such notice is put into post within the said period of 30 days.
Finding of the Court:
The court found that notice need be given within 30 days under proviso (b) to Sec.138 and if notice is despatched before the expiry of 30 days by post/courier or other means, that would be sufficient compliance of proviso (b) to Sec.138 of the Negotiable Instruments Act.
Issues: The issues involved the interpretation of the expression 'by giving a notice in writing .............. within thirty days of the receipt of information' in proviso (b) to Sec.138 of the Negotiable Instruments Act and whether the observation in a previous case obliges the complainant to despatch such notice in such time as to ensure receipt within 30 days.
Ratio Decidendi: The court interpreted the provisions of provisos (b) and (c) to Sec.138 of the Negotiable Instruments Act and concluded that notice need be given within 30 days under proviso (b) and if notice is despatched before the expiry of 30 days by post/courier or other means, that would be sufficient compliance of proviso (b) to Sec.138 of the Negotiable Instruments Act.
Final Decision: The court dismissed the writ petition as the petitioner did not have any ground to get the prosecution against him quashed by invoking the extraordinary inherent jurisdiction under Sec.482 of the Cr.P.C.
Should the notice of demand under proviso (b) to Sec.138 of the Negotiable Instruments Act be issued such that the drawer shall receive the notice within the period of 30 days? Is it sufficient if such notice is put into post within the said period of 30 days? How is the expression "by giving a notice in writing .............. within thirty days of the receipt of information" in proviso (b) to Sec.138 of the Negotiable Instruments Act to be understood? Does the observation in Madhu v. Omega Pipes Ltd., (1994(1) KLT 441) that such notice must be despatched "reasonably ahead of the expiry of fifteen days" oblige the complainant to despatch such notice in such time as to ensure receipt within 30 days? These are the interesting questions that arise for consideration in this case.
2. Fundamental facts are not in dispute. The cheque dated 29/4/05 for Rs.80,000/- was dishonoured on 3/5/05 and intimation was given of such dishonour on the same day. Notice of demand dated 1/6/05 was issued on 1/6/05. It was put into post on 1/6/05 and was received by the drawer on 4/6/05. If it is sufficient that despatch of the notice is made within 30 days, the notice is sufficient and proper. On the contrary, if dispatch of the notice must be so made as to ensure receipt within 30 days, we will further have to consider the question whether a notice despatched on 1/6/05 would have ordinarily reached the complainant on or before 2/6/05.
3. Provisos (b) and (c) to Sec.138 of the Negotiable Instruments Act are relevant. I extract the said clauses:
"138. Dishonour of cheques for insufficiency, etc., of funds in the account.--
x x x x x x x. Provided that nothing contained in this section shall apply unless--
(a) x x x x x x x x x x
(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 thirty 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.
(emphasis supplied)
4. A question was raised whether receipt of the notice must be insisted within the period (15 days as per the law at the relevant time) in Madhu v. Omega Pipes Ltd., (1994(1) KLT 441). His Lordship Mr. Justice K.T. Thomas clearly held that the expression "give notice" is not synonymous with "receipt" of the notice and in these circumstances, it would be sufficient if despatch of the notice is made within the stipulated period and the receipt by the drawer is after the said period. But His Lordship in para-6 of the said decision posed the following question and finally answered the same in para-7 in the following words:
"6. ............... Is it enough that he sends it just two or three days before the end of the said period since the postal authority would take the notice to the address with reasonable despatch and promptitude?
7. ............. Hence the realistic interpretation for the expression "giving notice" in the present context is that if the payee has despatched notice in the correct address of the drawer reasonably ahead of the expiry of fifteen days, it can be regarded that he made the demand by giving notice within the statutory period."
5. The learned counsel for the petitioner contends that to fall within the dictum in Madhu v. Omega Pipes Ltd., (1994(1) KLT 441) the complainant must have issued (put in post) the notice well prior to 3/5/05 to ensure its receipt before 3/5/05. The contention hence is that it is not enough if the notice is sent within 30 days; but it must be sent within 30 days to ensure receipt within such period of 30 days.
6. The expression "give" must admit many shades of meanings. In former days the expression "giving" could have been treated as sy
AI
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.