IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
Hon’ble Mr. Justice Surinder Singh, J.
Cr. MMO No.83 of 2009.
Decided on : 21st June, 2010.
Pardeep Kumar ...Petitioner.
Versus
Prithvi Raj ….Respondent.
2. Negotiable Instruments Act, S-138 and Criminal Procedure Code S-482 - Quashing of proceedings - Dishonor of cheque - Notice - Returned unclaimed - Second notice - Limitation - Petition - Grounds for appeal - Subsequent notice sent on the same address on which first notice was sent and was returned unclaimed - Pleaded non serving of notice. (Para 1 & 2)
3. (i) Negotiable Instruments Act, S-138 and Criminal Procedure Code S-482 - Quashing of proceedings - Dishonor of cheque - Notice returned unclaimed - Second notice - Limitation - Petition - Clause C - Deemed notice - Held, that, where notice is not served on account of non-availability of the address the court must presume service of notice - Appeal dismissed - Case of D. Vinod Shivappa V. Nanda Belliappa ) - Relied upon.
(Para 2)
(H) Negotiable Instruments Act, S-138 and Criminal Procedure Code S-482 - Quashing of proceedings - Dishonor of cheque - Notice returned unclaimed - Second notice - Limitation - Petition - Held, that this proviso is meant for persons who genuinely want to fulfill their promise but is not meant to protect unscrupulous drawers who never intended to honour the cheques to cheat - It being their part of modus operandi to cheat unsuspecting persons - Proceedings are not liable to be quashed u/s 482 - Case remanded.
(Paras 3 & 5)
Certainly. Based on the provided legal document, here are the key points:
The case involves a petition under Section 482 of the Criminal Procedure Code seeking to quash proceedings initiated under Section 138 of the Negotiable Instruments Act due to alleged issues with notice service and limitation (!) (!) .
The core issue pertains to whether the dishonor of the cheque and subsequent notices, specifically when the first notice was returned unclaimed, constitute a fresh cause of action and whether the complaint is within the prescribed limitation period (!) .
It is recognized that the deemed service of notice, especially when the first notice is returned unclaimed, can still be valid under certain circumstances, but this depends on the facts of each case. The court emphasizes that the presumption of service in such cases is not automatic and must be established (!) .
The proviso to Section 138 of the Negotiable Instruments Act is intended to protect honest drawers who genuinely intend to fulfill their obligations but may have failed due to inadvertence or negligence. It is not meant to shield dishonest drawers who habitually cheat by issuing dishonored cheques (!) .
In the specific case, the first notice was returned marked "unclaimed," and the subsequent notice was sent to the same address. The complainant alleged that the notice was served but was returned undelivered. The accused can contest this by providing evidence that the notice was deliberately avoided or that the endorsement was correct (!) (!) .
The court held that whether the notice was properly served or not is a matter of evidence, and thus, the proceedings could not be quashed solely on this ground. The case was remanded for trial, and the parties were directed to appear before the trial court (!) .
Overall, the decision underscores the importance of proper service of notice and clarifies that the question of service, especially when notices are returned unclaimed, is a factual matter that cannot be decided at the quashing stage without evidence (!) .
Let me know if you need further analysis or assistance.
SURINDER SINGH, J.
The petitioner through this petition is seeking quashing of the proceedings initiated on the complaint filed by the respondent under Section 138 of the Negotiable Instrument Act by invoking the provisions of Section 482 of the Code of Criminal Procedure, precisely on the ground that when the first notice of demand was sent by the respondent and was returned by the postal authorities as “unclaimed” whether the subsequent dishonour of cheque and sending of the second notice of demand accrued a fresh cause of action and the complaint would be within limitation.
2. As a matter of fact the cause of action may still arise for prosecution of the drawer of the cheque on the basis of deemed service of notice under clause (c) to Section 138 of the Negotiable Instrument Act. This question has to be answered by reference to the facts of each case. In D. Vinod Shivappa v. Nanda Belliappa, AIR 2006 SC 2179, the Apex Court observed that no rule of universal application can be laid down that in all cases where notice is not served on account of non-availability of the addressee, the Court must presume service of notice.
3. It is well settled that in interpreting a statute the Court must adopt that construction which suppresses the mischief and advances the remedy. The proviso (c) to Section 138 of the Negotiable Instrument Act is meant to protect honest drawers whose cheques may have been dishonoured for fault of others or who may genuinely wanted to fulfill their promise, but on account of inadvertence or negligence failed to make necessary arrangements for the payment of the cheque. This proviso is not meant to protect unscrupulous drawers who never intended to honour the cheques issued by them, it being a part of their modus operandi to cheat unsuspecting persons.
4. In the instant case, the first notice was returned with endorsement “unclaimed” and the subsequent notice of bouncing of the second presentation of the cheque was served on the same address.
5. In para 12 of the complaint the respondent made an averment that legal notice was served upon the accused at his home address but the same was returned back to the counsel for the complainant undelivered being “unclaimed”. This averment is with respect to the first notice. Now it is open to the complainant to prove that the endorsement is not correct and that the addressee, namely the drawer of the cheque, with knowledge of notice had deliberately avoided to receive the notice. However, the drawer is also at liberty to prove by leading his evidence that the said endorsement is correct. Therefore, in the circumstances the proceedings are not liable to be quashed under Section 482 of the Code of Criminal Procedure on the above ground being a matter of evidence, as such the petition is dismissed. The parties are directed to appear before the learned trial Court on 6th July, 2010. Send down the record forthwith.
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