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2001 Supreme(Raj) 190

K.T.THOMAS, R.P.SETHI, B.N.AGRAWAL
Shri Ishar Alloy Steels Ltd. – Appellant
Versus
Jayaswals NECO Ltd. – Respondent


Advocates Appeared:
A.K. Chitale, Senior Advocate with Niraj Sharma and Shilpa Chitale, Advocates, for Appellant Rana Mukherjee, N. Dubey and Indra Sawhney, Advocates, for Respondent

Honble SETHI, J.–Leave granted.

(a) What is meant by, ``the bank as mentioned in Clause (a) of the proviso to Section 138 of the Negotiable Instruments Act, 1881 ?

(b) Does such bank mean the bank of the drawer of the cheque or covers within its ambit any bank including the collecting bank of the Payee of the cheque ?

(c) To which bank the cheque is to be presented for the purposes of attracting the penal provisions of Section 138 of the Act ?

are the questions to be determined by this Court in this appeal.

Punjab and Haryana High Court in the case of Om Prakash vs. Gurcharan Singh (1). and Gujarat High Court in Arunbhai Nilkantharai Nanavti vs. Jayaben Prahladbhai through Her Power of Attorney and another (2) have held that a cheque must be presented to the bank on which it is drawn within six months from the date of issue of the cheque. However, Madras High Court in A.B.K. Publications Ltd. and others vs. Tamil Nadu Newsprint and Papers Ltd. (3) has taken the view that cheque can be presented either in the payees bank or in the drawer bank and the date of presentation in respective banks will be reckoned for calculating period of six months from the date it was drawn.

(3). In the prese










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