1994 Supreme(P&H) 677
PUNJAB & HARYANA HIGH COURT
V.K.Jhanji, J.
Gulshan Rai
Versus
Darshan Lal
Criminal Miscellaneous No. 9479 of 1991,
Decided On : AUGUST 18, 1994
The legal principle established is that under Sec. 138 of the Negotiable Instruments Act, a complainant cannot have a second cause of action on the same dishonored cheque if a notice was not issued within 15 days of the dishonor.
Headnote:
Sec. 138 of the Negotiable Instruments Act - Quashing of Complaint and Summoning Order
Fact of the Case:
The petitioner issued a cheque for part payment, which was dishonored. The respondent filed a complaint, and the petitioner sought to quash the complaint and summoning order on the grounds that the respondent did not issue a notice within 15 days of the dishonor of the cheque on the second presentation.
Finding of the Court:
The court found in favor of the petitioner, relying on previous judgments that held no prosecution can be lodged against the accused on the basis of cheques again presented but not honored, as the complainant could not have a second cause of action on the same cheque.
Issues: The main issue was whether the respondent had the right to prosecute the petitioner on the dishonored cheque, which was presented for the second time without the respondent issuing a notice within 15 days of the dishonor.
Ratio Decidendi: The court relied on the interpretation of Sec. 138 of the Negotiable Instruments Act and previous judgments to conclude that the petition deserves to be accepted and the complaint and summoning order should be quashed.
Final Decision: The petition was allowed, and the order of the Additional Chief Judicial Magistrate, the order of the Additional Sessions Judge, and the complaint were quashed.
V. K. Jhanji, J.
1. The present petition under Sec.482, Criminal Procedure Code, has been filed by the petitioner for quashing complaint dated 18.7.1990, order of summoning dated 3.8.1990 of Addi. Chief Judicial Magistrate and also against order dated 5.7.1991 of the Additional Sessions Judge, Kurukshetra, whereby his revision petition against the aforesaid order of summoning was dismissed. Complaint dated 18.7.1990 was filed under sec. 138 of the Negotiable Instruments Act, 181 (in short, the Act ).
2. As per averments made in the petition, the petitioner issued a cheque of Rs.5000.00 dated 15.2.1990 drawn on Bareli Corporation Bank Limited, Karol Bagh, New Delhi, towards part payment for the purpose of Basmati rice. The cheque was presented to the State Bank of India, Ambala City by the respondent, which was returned on 10.4.1990 by the Bank with the endorsement Referred to drawer. After the cheque was dishonoured, petitioner did not issue any notice within first 15 days from the date of information from the bank regarding dishonour of the cheque as unpaid. He again presented the cheque on 29.5.1990, but was again dishonoured. It was only thereafter that respondent issued a legal notice to the petitioner on 9.6.1990, i. e. within 15 days of the second presentation. On failure of the petitioner to make the payment, a complaint was filed by the respondent before the Judicial Magistrate. Before the Judicial Magistrate, a draft for Rs.5000.00 was paid to the respondent who has since got the same encashed. Quashing of the complaint, order of summoning and order passed by Additional Sessions Judge in the revision petition filed against order of summoning, has been sought on the ground that under sec. 138 of the Negotiable Instruments Act, the respondent was required to issue notice within 15 days from the date of intimation by the Bank regarding dishonour of the cheque and it does not give any right to the respondent to prosecute the petitioner on the cheque which was dishonoured on second presentation.
3. Notice of the petition was given to the respondent. Respondent has not filed any reply to the petition.
4. Counsel for the petitioner in support of her arguments, has relied upon the judgments in M/s. K. P. V. Textiles and another V/s. M/s. Malook Chand Naresh Chand and Kumaresan V/s. Ameorappa. In these judgments, it has been held by this court that no prosecution can be lodged against the accused on the basis of cheques again presented, but not honoured as the complainant could not have second cause of action on the same cheque. No judgment to the contrary has been cited by the counsel for the respondent. In view of the aforesaid judgments, this petition deserves to be accepted.
5. Consequently, this petition shall stand allowed and order dated 3.8.1990 of Additional Chief Judicial Magistrate, Kurukshetra, order dated 5.7.1991 of the Additional Sessions Judge Kurukshetra, and complaint, Annexure P.1 stand quashed. Petition allowed.