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2002 Supreme(P&H) 762

PUNJAB & HARYANA HIGH COURT
R.C.Kathuria, J.
Rahul Jain
Versus
Alstom Ltd.
Criminal Misc. No. 42556 of 2001,
Decided On : AUGUST 6, 2002

The notice of demand under Section 138 must demand the cheque amount, and any additional claims should be severable. Penal provisions must be construed strictly.

Headnote:

Negotiable Instruments Act - Complaint under Section 138 - 138 of the Negotiable Instruments Act, 1881 - Summary: The court addressed a complaint filed under Section 138 of the Negotiable Instruments Act, 1881, regarding the dishonour of a cheque. The court analyzed the notice of demand and the relevant legal provisions, including Sections 138 and 139, and their interpretations. The court emphasized that the notice must demand the cheque amount and that any additional claims should be severable. The court's decision was influenced by the strict construction of penal provisions and the requirement for the notice to specify the cheque amount.

Fact of the Case:

The complaint was filed under Section 138 of the Negotiable Instruments Act, 1881, regarding the dishonour of a cheque issued by the petitioners. The petitioners contested the complaint, arguing that the notice of demand was illegal due to discrepancies in the amount claimed.

Finding of the Court:

The court found that the notice of demand was valid as it clearly indicated the cheque amount and any additional claims were severable. The court emphasized the requirement for the notice to demand the cheque amount and the strict construction of penal provisions.

Issues: Validity of the notice of demand and the discrepancy in the amount claimed in the complaint.

Ratio Decidendi: The notice of demand must specify the cheque amount, and any additional claims should be severable. Penal provisions must be construed strictly.

Final Decision: The petition was dismissed as the court found no illegality in the notice served upon the petitioners.

Judgment

R.C.Kathuria, J.

1. The petitioners seek quashing of a complaint dated March 1, 2001 (Annexure P1) filed by Alstom Ltd. through R.D. Pandey, an authorised attorney, the respondent-complainant against the petitioners under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as "the Act") and all consequential proceedings taken therein.

2. The complainant-company had filed a complaint dated March 1, 2001, in the Court of the Chief Judicial Magistrate, Chandigarh under Section 138 of the Act on the allegation that the petitioners had issued a post-dated cheque No. 723509 dated December 11, 2000, for Rs. 50,988 drawn on Canara Bank, Hisar in favour of the complainant. The said cheque was presented to the aforesaid bank for encashment which was dishonoured vide memo dated January 3, 2001, with the remarks "payment stopped by drawer". Thereafter, a notice dated January 19, 2001, was sent to the petitioners through registered post as well as UPC on January 22, 2001. The petitioners failed to make the payment, therefore, the complaint was filed in court. Aggrieved by the filing of the complaint, the present petition has been filed on the allegation that though the complainant had made reference to the cheque for the amount of Rs. 50,988 in the complaint in the notice served upon the petitioners the claim had been made for Rs. 51,530. The legal notice dated January 19, 2001 (Annexure P2) being illegal, the complaint deserves to be quashed.

3. Notice of the petition was given to the respondent who has contested the stand taken by the petitioners in the reply filed by them.

4. I have heard counsel for the parties at length.

5. In order to appreciate the stand taken on behalf of the petitioners, reference needs to be made to the notice dated January 19, 2001, placed on record, the relevant portion which has bearing on the controversy, reads as under :

"We regret to bring to your notice that cheque detailed below, which was issued has been returned unpaid by your banker with the following : Payment stopped by the drawer. Cheque No. Date Drawn on Amount 723509 11-12-2000 Canara Bank, Hisar Rs. 51,530 (including bank charges) You must be aware that as per recent amendment to the Negotiable Instruments Act, under Sections 138 to 142 of additional Chapter XVII, any person, whose cheque (issued for discharge in whole or in part of any debt or other liability) bounces due to lack of sufficient funds, shall be deemed to have committed an offence and such person, in addition to being liable for a civil suit, can also be made criminally liable. You are, therefore, advised to make payment against the above dishonoured cheque amount by a bank draft within 15 days of receipt of this notice, otherwise we shall be left with no option, but to indict legal proceedings against you under above mentioned additional Chapter of the Negotiable Instruments Act, 1881 . Please also note that you will also be liable to pay interest at 18 per cent per annum on the dishonoured cheque amount, if payment is not made within the aforesaid period."

6. The respondent-complainant has also placed on record debit note, Annexure R; relevant portion of the same reads as follows :

"Please note that your account has been debited on account of cheque returned duly unpaid by your banker with the following remarks : Payment stopped by the drawer. Details of dishonoured cheque(s) : Receipt No. Cheque No. Date Amount Bank charges Total 17535 723509 11-12-2000 50,988.00 542.61 51,530.61 51,530.61 Rupees fifty-one thousand five hundred thirty and paise sixty-one only."

7. The above debit note was issued on January 15, 2001, addressed to the petitioners. In this debit note, it had been clearly intimated to the petitioners that payment of the cheque had been stopped by them and the total amount includes Rs. 50,988.00 plus bank charges of Rs. 542.61. In this manner, the total amount comes to Rs. 51,530.61. In the notice dated January 19, 2001, the amount of











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