SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(Jhk) 936

IN THE HIGH COURT OF JHARKHAND AT RANCHI
Anubha Rawat Choudhary, J.
Abhishek Srivastva - Petitioner
Versus
The State of Jharkhand and ors. – Opp. Parties
Cr. Revision No. 281 of 2024
Decided On : 15-10-2024

Advocates:
Advocate Appeared:
For the Petitioner:Mr. Mahesh Tewari, Advocate, Mr. Ashok Kumar Sinha, Advocate
For the Opposite Party :Ms. Mohua Palit, APP, Mr. Rajendra Pd. Gupta, Advocate

Service of notice under Section 138 of the Negotiable Instruments Act is presumed when sent to the correct address, placing the burden on the accused to prove non-receipt.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Criminal Procedure Code, 1973 - Section 421 - Conviction for cheque dishonor - Petitioner convicted for issuing a cheque of Rs. 15 lakhs which bounced due to 'Account blocked' - Sentenced to 1.5 years imprisonment and a fine of Rs. 20 lakhs - Notice served at residential address, upheld by courts despite claims of non-receipt - Presumption of service under Section 27 of General Clauses Act applies. (Paras 3, 20, 28)

(B) Service of Notice - Requirement of service of notice under Section 138 is mandatory - Presumption of service arises when notice is sent to the correct address - The burden of proof lies on the accused to show non-receipt. (Paras 16, 20, 27)

Facts of the case:
The petitioner was convicted for issuing a cheque for Rs. 15 lakhs which bounced. The complainant claimed that the cheque was issued for a friendly loan and that notice was duly served at the petitioner's residential address. (Paras 3, 8)

Findings of Court:
The courts found that the notice was served at the correct address and the petitioner failed to prove non-receipt, leading to the conviction under Section 138. (Paras 20, 28)

Issues: The main issue was whether the notice of demand was properly served upon the petitioner. (Paras 4, 20)

Ratio Decidendi: The court held that service of notice is presumed when sent to the correct address, and the accused must provide evidence to the contrary. (Paras 20, 27)

Result: Revision dismissed; conviction upheld.

Judgement Key Points

Key Points: - The court held that service of notice is presumed when sent to the correct address, and the accused must prove non-receipt. (!) (!) - The presumption applies under Section 114 of the Evidence Act and Section 27 of the General Clauses Act, and is applicable to speed post if sent to the correct address. (!) - If the accused does not pay the cheque amount after service of notice, the cause of action for offense under Section 138 NI Act arises. (!) - The notices were sent to two addresses; service at the residential address was upheld, while one address was returned as "addressee left." (!) (!) - The revision was dismissed and conviction upheld; notice service found to be proper despite arguments of non-receipt. (!) (!) - The complainant's evidence included tracking reports and postal receipts supporting service, which supported the trial court’s finding of service. (!) (!) - The accused surrendered in court and took bail after receiving the notice, supporting the finding of service. (!) - The court reiterated that service of notice can be established by tracking and presumption, placing the onus on the defense to disprove. (!) (!)

What is the presumption of service of notice under Section 138 NI Act when sent to the correct address?

What is the burden of proof on the accused to prove non-receipt of notice under Section 138 NI Act?

What are the consequences if the notice of demand is served but the accused does not pay the cheque amount within the prescribed time?


JUDGMENT :

Anubha Rawat Choudhary, J.

Heard the learned counsel for the parties.

2. This criminal revision petition has been filed against the judgment dated 13.12.2023 passed by learned Sessions Judge, Chaibasa, whereby the Criminal Appeal No. 92 of 2023 has been dismissed.

3. The petitioner has been convicted vide judgment of conviction and order of sentence dated 21.07.2023 passed by learned Judicial Magistrate, 1st Class, Chaibasa, West Singhbhum in Complaint Case No. 235 of 2020 for offence under Section 138 of the Negotiable Instruments Act. The cheque involved in the present case is for an amount of Rs. 15 lakhs and the petitioner has been sentenced to undergo Simple Imprisonment of 1 year and 6 months and fine amount of Rs. 20 lakhs with default sentence and there is also a direction that if the compensation is not paid within time, it shall be recoverable under the provisions of Section 421 of Cr. P.C.

Submission on behalf of the parties.

4. The sole point argued on behalf of the petitioner is that the learned Courts have wrongly recorded finding with regard to service of notice arising out of bouncing of cheque. He submits that the findings recorded by the learned Courts are perverse and call for interference.

5. Learned counsel appearing on behalf of the Opposite Party No.2 has submitted that the notices were sent at two addresses; one at residential address and other at shop address. The notice sent at shop address returned unserved by endorsement “addressee left”, but so far as the notice sent to the residential address is concerned, it was duly served.

6. Learned counsel for the petitioner, in response, has submitted that the Exhibit- X and X/1 were marked only for identification and those documents could not have been taken into consideration to hold that the notice was duly served upon the petitioner and the learned Trial Court had rightly observed that the speed post tracking report has no evidentiary value in the eyes of law, yet the judgment was pronounced by the Trial Court holding the petitioner guilty.

7. Except the aforesaid point regarding service of notice, no other point has been argued by the learned counsel for the petitioner.

Findings of this Court

8. As per the prosecution case, the accused-petitioner had approached the complainant for a friendly loan of Rs. 15 lakhs to meet extreme financial emergency and a friendly loan was extended and the accused agreed to return the same at the earliest. However, he did not return the money in spite of repeated request and at last, he handed over a cheque dated 06.10.2020 for an amount of Rs. 15 lakhs in favour of the complainant which upon presentation bounced vide memo dated 07.10.2020 for the reasons “Account blocked.”

9. The complaint case was filed disclosing the address of the petitioner as under:

    “Sri Abhishek Srivastva, son of Narendra Nath Srivastva, At present having carrying on business as “Neha Electronics” Raj Kumari Apartment, Goushala Nala Road, Jugsalai, P.S. Jugsalai, P.S. Jugsalai, District Singhbhum East 831006 Having his permanent residence at Village Harinathpur, P.S. Mohania, District Kaimur (Bhabhua) 821109.”

10. The complainant was the sole witness and he exhibited the following documents: -

Sr. No.

Exhibit Number

Description

1.

P-1/PW1

Original Cheque bearing No. 000020 dated 06.10.2020 of Bank of India Chaibasa branch for Rs. 15,00,000/-

2.

P-2/PW 1

Original Cheque return memo of HDFC Bank Chaibasa branch dated 07.10.2020

3.

P-3/PW1

Original Legal notice dated 02.11.2020 4. P-4/PW1 Original Postal receipt no. EJ198557969IN

5.

P-4/PW1

Original Postal receipt no. EJ198557972IN 6. P-5/PW1 Envelope showing ‘addressee left’

7.

P-6/D W 1

Writing on the photocopy of the PAN Card of the accused

8.

P-7/DW1

Writing on the photocopy of the Voter ID of the accused

9.

Mark X for identification

    Click Here to Read the rest of this document
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    SupremeToday Portrait Ad
    supreme today icon
    logo-black

    An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

    Please visit our Training & Support
    Center or Contact Us for assistance

    qr

    Scan Me!

    India’s Legal research and Law Firm App, Download now!

    For Daily Legal Updates, Join us on :

    whatsapp-icon Back to top