IN THE HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Mansoor Ahmad Mir, J.
Bashir Ahmad Mir - Appellant
Versus
Gh. Hassan Ganai - Respondent
561-A Cr.P.C. No. 10/2008
Decided On : 03 September, 2008
Negotiable Instruments Act - Dishonour of Cheque - Section 138 - [Breach of Contract - Negotiable Instruments Act, 1881, Section 138] - [Section 138 of the Negotiable Instruments Act] - The court discussed the legal provisions of Section 138 of the Negotiable Instruments Act, emphasizing the six essential ingredients required for a complaint under this section. The court also interpreted the computation of time for presenting a cheque within six months from the date it was drawn, citing relevant case law and legal principles. The interpretation of these legal provisions influenced the court's decision to dismiss the petition and uphold the impugned order.
Fact of the Case:
The complainant filed a complaint under Section 138 of the Negotiable Instruments Act, alleging that the accused issued a cheque that was subsequently dishonored. The accused sought to quash the proceedings on the grounds that the notice was issued after 15 days and the cheque was presented after six months.
Finding of the Court:
The court found that the notice was issued within the required time frame and that the cheque was presented within six months from the date it was drawn. The court dismissed the petition and upheld the impugned order, directing the parties to appear before the trial court.
Issues: The issues involved the timing of the notice and the presentation of the cheque, as well as the interpretation of Section 138 of the Negotiable Instruments Act.
Ratio Decidendi: The court's decision was based on the finding that the notice was issued within the stipulated time frame and that the cheque was presented within six months from the date it was drawn, in accordance with the legal provisions of Section 138 of the Negotiable Instruments Act.
Final Decision: The petition was dismissed, and the impugned order was upheld, with the parties directed to appear before the trial court.
2. Respondent, Ghulam hassan Ganai, complainant, filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, for the short the Act, before the Judicial Magistrate First Class, (Sub-Judge), Pulwama on 7th of December, 2005. The trial court has drawn the cognizance and issued process vide order dated 7th of December, 2005.
3. Petitioner-accused appeared and filed application for dropping the proceedings-came to be granted vide order dated 30th of November, 2006 and complaint came to be dismissed. Feeling aggrieved, complainant-respondent filed a revision petition before the court of Sessions Judge, Pulwama-came to be allowed vide order dated 29th of December, 2007 with the command to the trial court to try the complaint and take it to its logical conclusion. The said order is the subject matter of this petition.
4. It is alleged in the complaint that accused-Bashir Ahmad Mir, borrowed a handsome amount from the complainant in order to enable him to supply delicious fruits but the accused committed a breach and thereafter accounts came to be settled and Rs. 50,000/- were found outstanding/ liability/ debt against the accused who issued cheque No.1130238 dated 25th of April, 2005 for the said amount. Complainant deposited the cheque in Jammu & Kashmir Bank, Branch Drabgam but was returned back on 31st of October, 2005 with the report "account not renewed". Cheque and memo are appended with the complaint. A notice dated 12th November, 2005 came to be issued by the complainant to the accused about bouncing of the cheque and demand of payment of money within 15 days from the date of receipt of notice but accused failed to make payment.
5. It appears that cheque came to be issued on 25th of April, 2005 and came to be presented before the bank for encashment on 25th of October, 2005 and came to be returned along with memo as bounced on 31st October, 2005.
6. Learned counsel for the petitioner argued that the proceedings drawn, cognizance taken and process issued is abuse of the process of law on the following counts;
that notice came to be issued after 15 days; and
cheque came to be presented after period of six months.
7. Both the arguments of learned counsel for the petitioner are not tenable for the following reasons.
It appears that legal notice came to be issued by one Reyaz Hussain Qadiri to the accused on 12th of November, 2005 and came to be posted on 14th of November, 2005. The cheque came to be returned on 31st of October, 2005 as bounced. Thus, prima facie it appears that notice came to be issued within time frame as per the mandate of Section 138 of the Act.
8. The question that cheque was not presented within six months was neither raised by the accused before the trial court nor before the revisional court. However, it is a legal issue and I deem it proper to thrash it out. It is apt to reproduce Section 138 of the Act herein:-
"138. Dishonour of cheque for insufficiency, etc., of funds in the account. - Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provisions of this Act, be punished with imprisonment [a term which may be extended to two years] or with fine which may extend to twice the amount of the cheque, or with both:
Provided that nothing contained in this section shall apply unless -
(a) t
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