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2011 Supreme(Ori) 70

V.GOPALA GOWDA, B.N.MAHAPATRA
Kailash Chandra Mishra – Appellant
Versus
Ajitsinh Ulhasrao Babar – Respondent


Advocates:
Advocate Appeared:
For Petitioner: Mr. Jagannath Patnaik, Sr. Adv., B. Mohanty, P.K. Nayak, A. Patnaik
For Opp. Parties : Mr. M. Mishra, D. Mishra

Judgement Key Points

What is the validity of filing a Section 138 NI Act complaint by a Power of Attorney holder of a company against the petitioner? (!) What is the mandatory requirement of service of notice under Section 138(b) & (c) of the NI Act, and is a returned unserved notice due to absence deemed service? (!) (!) What is this Court's jurisdiction to interfere with or quash proceedings initiated at a distant forum (Daman, Uttaranchal) when the cause of action arises in Orissa, and whether Article 226 relief is maintainable? (!) (!) (!)

Key Points: - The Principal Officer cannot re-delegate authority to file NI Act complaints through a Power of Attorney; such filing may be incompetent (!) . - Notice under NI Act Section 138(b)/(c) must be served on the addressee; an endorsement that the addressee was absent does not automatically constitute deemed service; proper service is mandatory for cognizance (!) (!) . - The cause of action for the cheque dishonour arose in Orissa (Balasore/Bhubaneswar), making the Daman (Uttaranchal) proceeding not maintainable; the High Court has jurisdiction to entertain a writ petition challenging such proceedings under Article 226 (!) (!) (!) .

What is the validity of filing a Section 138 NI Act complaint by a Power of Attorney holder of a company against the petitioner? [p_6]

What is the mandatory requirement of service of notice under Section 138(b) & (c) of the NI Act, and is a returned unserved notice due to absence deemed service? [p_12][p_13]

What is this Court's jurisdiction to interfere with or quash proceedings initiated at a distant forum (Daman, Uttaranchal) when the cause of action arises in Orissa, and whether Article 226 relief is maintainable? [p_8][p_15][p_16]


ORDER

22.2.2011 - The petitioner is before this Court seeking for issuance of a writ of certiorari and to quash the Criminal Case No. 83/2004 pending before the Chief Judicial Magistrate, Daman in the State of Uttaranchal and further issuance of a direction upon the opposite party No. 1 not to take any action against the petitioner so far as the business transaction with the opposite party No. 2 is concerned with reference to the cheque which has been given to the opposite party towards security.

2. The facts of the case in brief are that the petitioner is a proprietor of M/s. Premier Distributors situated at Plot No. N/4, 169, IRC Village, Nayapalli, Bhubaneswar, dealing with materials including plastic goods in the Districts of Cuttack, Balasore and Jagatsinghpur by opening different branches in the above places. He is doing business since long by establishing its firm. During the business transaction, petitioner and the opposite party-company entered into an agreement with the terms that the opposite party-company will supply the goods to the petitioner on credit with security of Bank cheque without giving date and amount and payment of cost of goods will be paid by installments b























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