HIGH COURT OF JAMMU AND KASHMIR AT SRINAGAR
Mohammad Yaqoob Mir, J.
Farhan Hassan Kitab -Appellant
Versus
Tariq Ahmad Haji -Resopndent
Petition u-s 561-A Cr. P.C No. 43-2012
Decided On : 11-07-2013
Negotiable Instruments Act - Notice of Demand - Section 138 - 138(1) - 138(b) - 138 Proviso - Sivakumar v. Natarajan - Dheeraj Jain v. State & Anr
Fact of the Case:
The respondent filed a complaint under Section 138 of the Negotiable Instruments Act against the petitioner for dishonor of cheques. The petitioner argued that the notice of demand issued by the respondent was beyond the stipulated 30 days, rendering the complaint not maintainable.
Finding of the Court:
The court found that the notice of demand for 11 cheques was issued after the stipulated 30 days, making the complaint not maintainable. However, the complaint regarding the 12th cheque was deemed maintainable as the notice of demand was issued within the stipulated period.
Issues: The main issue was whether the notice of demand issued by the respondent was within the stipulated 30 days as required by Section 138 of the Negotiable Instruments Act.
Ratio Decidendi: The court applied the legal principles established in the cases of Sivakumar v. Natarajan and Dheeraj Jain v. State & Anr to determine the timeliness of the notice of demand. It held that the complaint regarding 11 cheques was not maintainable due to the late issuance of the notice of demand, while the complaint regarding the 12th cheque was deemed maintainable.
Final Decision: The court quashed the cognizance taken by the Magistrate for the complaint regarding the 11 cheques and deemed it dismissed. The complaint regarding the 12th cheque was allowed to proceed, and the trial court was instructed to consider it afresh.
2. Petitioner purchased the footwear's and issued 12 cheques on different dates bearing serial Nos. 12776350 to 12776361. The respondent presented the said cheques in Jammu & Kashmir Bank Ltd. Branch Office Residency Road, Srinagar. 11 Cheques bearing serial Nos. 12776350 to 12776360 were returned unpaid with memo dated 06.01.2009 carrying endorsement to the following effect "not sufficient" whereas 12th cheque bearing serial No. 12776361 was returned unpaid with memo dated 23.01.2009 carrying endorsement "not sufficient".
3. Respondent has issued notice of demand under Section 138 of the Negotiable Instruments Act (hereinafter referred to as NI Act) on 05.02.2009. When the amount was not paid, respondent filed a complaint of which cognizance has been taken and process issued. The said complaint, in view of non-appearance of the parties, was dismissed on 31st May, 2011 but said dismissal order was challenged by the respondent by medium of a revision petition which has been allowed by the Court of 1st Additional Sessions Judge, Srinagar vide judgment dated 28.12.2011 holding therein that the complaint could not be dismissed for default for the reasons as recorded in the judgment. As a result thereof, complaint has been taken up for further proceedings by the trial court.
4. Petitioner by virtue of this petition filed under Section 561-A Cr. P. C has projected that when the cheques were returned unpaid, the respondent was required to issue notice of demand within 30 days of the receipt of information by him from the bank regarding return of the cheque as unpaid. Admittedly the respondent had received information from the bank about return of 11 cheques bearing serial Nos. 12776350 to 12776360 on 06.01.2009, so notice of demand should have been issued up to 4th February, 2009. With regard to 12th cheque bearing No. 12776361, information regarding return of the cheque as unpaid, admittedly was received by the respondent on 23.01.2009.
5. Learned counsel for the petitioner would contend that the respondent has issue a composite notice of demand under Section 138 clause (b) to the proviso of NI Act on 05.02.2009. Notice of demand vis-a-vis 11 cheques is issued after the stipulated time. It being so, the Magistrate should not have taken the cognizance as the notice was barred by limitation. In support of this contention, learned counsel has relied on the judgment rendered by Hon'ble Apex Court in the case Sivakumar v. Natarajan (Criminal Appeal No. 1077 of 2009) and also on the judgment rendered by the High Court of Delhi in the case Dheeraj Jain v. State & anr (Crl. M. C. No. 3426/2011 & Crl. M. A. No. 12164/2011), wherein quashment of the proceedings before the trial court was sought on the ground that the legal notice was given beyond 30 days of the knowledge of dishonour of cheques.
6. Counsel for the respondent in opposition would contend that the object of NI Act cannot be permitted to be frustrated on hyper technical grounds. That apart, according to him, the notice of demand has been issued within time.
7. While considering rival submissions and the record, the admitted position as has emerged is that 11 cheques bearing Nos. 12776350 to 12776360 have been returned unpaid as intimated to the respondent on 06.01.2009. The notice of demand was required to be issued within 30 days, as is the mandate of Clause (b) of Proviso to Section 138 of NI Act.
8. In the judgment Sivakumar v. Natarajan, rendered by the Hon'ble Apex Court on 15th May, 2009, the position of issuance of notice of demand and knowledge regarding cheque having been returned unpaid is identical. In the said judgment cheque was issued on 27.11.2003, same was presented
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