IN THE HIGH COURT OF JHARKHAND AT RANCHI
Anubha Rawat Choudhary, J.
Rahul Raj @ Rahul son of Late Bharat Prasad – Petitioner
Versus
The State of Jharkhand and ors. - Opp. Parties
Criminal Revision No. 223 of 2012
Decided On : 20-09-2021
Negotiable Instruments Act - Dishonoured Cheques - Section 138 - Summary of Acts and Sections: Section 138 of the Negotiable Instruments Act, Section 357 of Cr.P.C. - The court discussed the presumption under Section 139 of the Negotiable Instruments Act, the requirement of service of notice, and the legal principles established by the Supreme Court in the cases of R. Vijjayan vs Bebi and Yogendra Pratap Singh vs Savitri Pandey. The court found that the complaint was premature and not legally maintainable due to the absence of evidence regarding the service of notice, and acquitted the petitioner.
Fact of the Case:
The petitioner issued three post-dated cheques to the complainant, which were dishonoured by the bank. The complainant filed a complaint under Section 138 of the Negotiable Instruments Act, alleging that the petitioner failed to discharge the liability of the cheques. The trial court convicted the petitioner and directed him to pay compensation. The appellate court confirmed the conviction but set aside the compensation and remanded the case for rehearing on the point of sentence.
Finding of the Court:
The court found that the complaint was premature and not legally maintainable due to the absence of evidence regarding the service of notice. The petitioner was acquitted and discharged from the liability of the bail bond.
Issues: The issues revolved around the dishonoured cheques, the requirement of service of notice, and the maintainability of the complaint under Section 138 of the Negotiable Instruments Act.
Ratio Decidendi: The court established that the cause of action for filing a complaint under Section 138 of the Negotiable Instruments Act cannot arise before expiry of 15 days from the date of service of notice upon the accused. The complaint was deemed premature and not legally maintainable.
Final Decision: The criminal revision petition was allowed, the petitioner was acquitted, and the complaint was deemed premature and not legally maintainable.
JUDGMENT :
Heard Mr. Suraj Kumar, the learned Advocate appearing on behalf of the petitioner.
2. Heard Ms. Mahua Palit, the learned A.P.P. appearing on behalf of the Opposite Party No.1-State.
3. None appeared on behalf of the Opposite Party No.2.
4. The present criminal revision is directed against the Judgment dated 21.03.2012 passed by the learned Judicial Commissioner-IX, Ranchi in Criminal Appeal No. 138 of 2011 whereby and whereunder the learned appellate court confirmed the conviction of the petitioner under Section 138 of the Negotiable Instruments Act, but set aside the part of the order of sentence passed by the learned trial court whereby and whereunder the petitioner was directed to pay a compensation amount of Rs.19,50,000/- under Section 357 of Cr.P.C. and remanded back the case to the learned trial court to rehear the parties on the point of sentence and pass the order in terms of the law laid down by the Hon’ble Apex Court in the case of R. Vijjayan –vs- Bebi reported in AIR 2000 SC 528 and also in view of the provision contained under Section 357(3) of Cr.P.C. and the criminal appeal was partly allowed and partly dismissed.
5. The learned trial court vide Judgment of conviction and the order of sentence dated 12.08.2011 passed by the learned Judicial Magistrate, 1st Class, Ranchi in Complaint Case No. 333 of 2006 / T.R. No. 461 of 2011 had convicted the petitioner for the offence under Section 138 of the Negotiable Instruments Act and had sentenced him to undergo Simple Imprisonment for one year and fine of Rs.2,000/- and in case of default in payment of fine, to undergo Simple Imprisonment for further one month and had further directed the petitioner to pay compensation of Rs.19,50,000/- to the Complainant under Section 357 of Cr.P.C. However, the learned trial court held that Section 420 of the Indian Penal Code is not attracted and established in the present case.
Arguments on behalf of the petitioner
6. The learned counsel appearing on behalf of the petitioner relied upon the following judgments:- 2012 (1) JLJR 220 Prahlad Rai Agrawal –vs- The State of Jharkhand, 2012 (1) JLJR 48 Hari Ram Sariwala @ Hari Ram –vs- The State of Jharkhand, 2011 (3) JLJR 311 Shahid Ali –vs- State of Jharkhand & Anr. and 2008 (2) JLJR 22 (SC) K. Prakashan –vs- P.K Surenderan.
7. The learned counsel submitted that the learned courts below have not properly appreciated the evidences on record and the presumption, that the cheque was drawn against a liability, has been duly rebutted by the petitioner in the light of preponderance of probability. He submitted that the demand cheques were issued by the petitioner for the purpose of admission in Law College, but the same were misused by the complainant and there was no legal debt for which the cheques were issued.
8. He further submitted that even the timeline prescribed for filing a case under Section 138 of the Negotiable Instruments Act has not been satisfied in the present case and the case itself was pre-matured. He submitted that notice for cheque bouncing was issued on 17.02.2006 and the postal receipt has been exhibited, but there is no document to show the service of notice and accordingly, at best, the deemed service of notice could be taken as 18.03.2006, but the present case was filed on 17.03.2006. He submitted that even after deemed service of notice, the petitioner has time of 15 days to respond to the legal notice or to pay the same. He submitted that in view of the aforesaid list of dates, the case itself was filed pre-matured and accordingly, the conviction of the petitioner under Section 138 of the Negotiable Instruments Act cannot be sustained in the eyes of law.
Arguments on behalf of the State
9. The learned counsel for the opposite party-State opposed the prayer and submitted that the impugned judgments of conviction and sentence do not call for any interference in revisional jurisdiction as they do not suffer from any illegality or perversity.
Findings of this Court
10. Af
Hari Ram Sariwala @ Hari Ram Vs. The State of Jharkhand
Prahlad Rai Agrawal Vs. The State of Jharkhand
Shahid Ali Vs. State of Jharkhand & Anr.
The cause of action for filing a complaint under Section 138 of the Negotiable Instruments Act cannot arise before expiry of 15 days from the date of service of notice upon the accused.
Negotiable instrument - Notice - Cause of action for filing a complaint case under Section 138 of the N.I. Act could not arise prior to expiry of 15 days from the date of service of legal notice on t....
The cause of action for filing a complaint case under Section 138 of the Negotiable Instruments Act could not arise prior to expiry of 15 days from the date of service of legal notice on the accused.
The presumption of service of legal notice under Section 27 of the General Clauses Act applies, and a complaint under Section 138 of the Negotiable Instruments Act is premature if filed before the st....
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The court emphasized the importance of valid service of legal notice and the necessity for the complaint to be filed after the expiry of 15 days from the date of service of notice, as prescribed unde....
The determination of the date of receipt of notice and the commencement of the statutory period for filing a complaint under Section 138 of the NI Act.
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