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MANJARI NEHRU KAUL
Golden Agro Foods – Appellant
Versus
Sahil Trading Company – Respondent
JUDGMENT
Mrs. Manjari Nehru Kaul, J. (Oral)
Petitioners are seeking quashing of a Criminal Complaint bearing No.NACT/977 dated 18.07.2017 titled as " Sahil Trading Company v. Ms. Golden Agro Fooda " (Annexure P-1) and summoning order dated 17.10.2017Annexure P-2) passed by learned Judicial Magistrate, Panchkula, whereby, they have been summoned to face trial under section 138 of the Negotiable Instruments Act.
2. Learned counsel appearing for the petitioner inter alia submits that the complaint under section 138 of the Negotiable Instruments Act which was instituted by the complainant/respondent against the petitioners was not maintainable as the mandatory statutory provisions had not been complied with. Learned counsel while drawing the attention of this Court to the second proviso to section 138 of the Negotiable Instruments Act has submitted that issuance of statutory demand notice to all the accused is mandated therein, however, admittedly in the case in hand, notice was issued only to petitioner No.2. Since the cheque in question had been drawn in the name of petitioner No.1/company, a complaint under section 138 of the Negotiable Instruments Act could not have been instituted w
There is a presumption under Section 139 of the N.I.Act that there exists a legally enforceable debt or liability.
A proper demand notice under Section 138 of the Negotiable Instruments Act is essential before initiating proceedings; failure to comply invalidates the complaint.
Failure to issue a statutory notice under Section 138 of the NI Act invalidates the prosecution against the accused.
The obligation of partners to issue public notice of firm dissolution as per Section 45 and 72 of the Indian Partnership Act,1932, and the need to examine the substance of the allegations to fulfill ....
Prosecution against a partner of a partnership firm under Section 138 of the N.I. Act is not maintainable without including the firm as an accused, affirming the principle of vicarious liability.
A legal notice under Section 138 must clearly state the cheque amount due; a vague demand fails to meet legal requirements, rendering the complaint invalid.
The main legal point established in the judgment is the proper service of demand notice under Section 138 of the Negotiable Instrument Act, and the consequences of such service on the acquittal of th....
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