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SOPHY THOMAS
N. M. Minerals India Private Ltd. – Appellant
Versus
P. K. Raju – Respondent
JUDGMENT :
This appeal is at the instance of the complainant in CC No.653 of 2002 on the file of Judicial Magistrate of First Class-I, Cherthala, challenging acquittal of the accused, in a complaint filed by him under Section 138 of the Negotiable Instruments Act (N.I.Act for short), as per judgment dated 31/1/2006.
2. The complainant-N.M.Minerals India Private Ltd is a Private Limited Company registered under the Indian Companies Act, represented by its power of attorney holder.
3. The case of the appellant/complainant is that, towards the price of mineral water purchased by the accused from that company, he owed a sum of Rs.34,940/-, and towards discharge of that liability, he issued Ext.P1 cheque dated 23/8/2001 drawn on District Co-operative Bank, Kunnukuzhy Branch, Thiruvananthapuram. When that cheque was sent for collection through his bank i.e. Dhanlaxmi Bank, Cherthala Branch on 20/2/2002, it was returned dishonoured for the reason ‘Payment stopped by the drawer’, as per Ext.P3 dishonour memo dated 25/2/2002. Intimation of dishonour was received by the complainant on 6/3/2002. Thereafter, he sent registered lawyer notice to the accused on 14/3/2002. In spite of receipt of noti
The court clarified that for criminal liability under Section 138, a cheque must be presented to the drawee bank within six months from its date.
Cheque must be presented at the paying bank within six months; delay renders it stale and invalidates prosecution.
The issuance of a cheque signifies a legally enforceable debt under Section 138 of the N.I. Act, and the burden to prove otherwise lies with the accused, not the complainant.
A power of attorney holder can present a cheque on behalf of the payee, and the absence of a date on the cheque does not invalidate it if issued for a loan.
The court established that in computing time limits under Section 138 of the NI Act, the first day is excluded and the last day is included.
The main legal point established in the judgment is the importance of complying with statutory requirements, including the issuance of notice within the limitation period for the first presentation o....
The crucial consideration is whether at the time of presentation of the cheque for encashment, there was a legally enforceable debt or liability due to the complainant from the accused. The nomenclat....
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