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2023 Supreme(P&H) 3000

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
N.S. SHEKHAWAT, J.
Jasbir Singh Sodhi – Appellant
Versus
G.S. Bhalla & Ors. – Respondents
CRA-S NO. 2901-SB of 2010 (O&M)
Decided On : 14-03-2023

Advocates Appeared:
Mr. H.S. Randhawa, Advocate as Amicus Curiae; For the Appellant
Ms. Sheenu Sura, Advocate as Amicus Curiae; For the Respondents

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Appeal against acquittal - The appellant contended the trial court's findings ignored evidence and settled law regarding notice requirements under Section 138 - Legal notices issued by the appellant were deemed to satisfy the statutory timeframe following the dishonor of the cheque. The trial court ruled the notice was effectively served after multiple attempts, confirming the absence of liability on the part of the respondents based on presented evidence. (Paras 1-10)

(B) Acquittal - The grounds for appealing an acquittal are limited; the appellate court must find the trial court's approach fundamentally flawed or its conclusions untenable to intervene in the acquittal decision. (Paras 8 and 9)

Facts of the case:
The appellant alleged that a cheque for Rs. 90,000/- was dishonored, and consequent legal notices were inadequately served, leading to complaints being filed. However, evidence presented by the respondents proved that payments were already made after the cheque issuance.

Findings of Court:
The trial court's findings that the legal notice was not timely served were upheld, determining no existing liability existed against the respondents.

Issues: The principle surrounding the necessity of serving notice under Section 138 and the assessability of liability upon dishonor of a cheque were the crux of the case.

Ratio Decidendi: The appellate court reaffirmed that legal notices need to be served in accordance with statutory requirements. Furthermore, determinations about acquittal must align with established standards for trial court reviews, emphasizing a lack of manifest error in the trial court’s decisions.

Result: Appeal dismissed.

Table of Content
1. summary of appellant's case and allegations. (Para 1 , 2)
2. arguments presented by both parties. (Para 3 , 4)
3. court analysis of legal obligations under the act. (Para 5 , 6 , 7 , 8)
4. establishment of principles in reviewing acquittals. (Para 9 , 10)
5. final decision and appellate court's order. (Para 11 , 12 , 13 , 14)

JUDGMENT

Mr. N.S. Shekhawat, J.

Challenging the judgment of acquittal dated 13.03.2008 passed by the Court of learned Judicial Magistrate 1st Class, Chandigarh, the appellant/complainant has preferred the present appeal before this Court. The learned Judicial Magistrate 1st Class concluded that the appellant had failed to prove the notice of acquisition, served upon the respondents/accused for the commission of offence punishable under section 138 of the Negotiable Instruments Act, 138 (hereinafter to be referred as 'the Act') and the respondents were ordered to be acquitted of the same.

2. The case set up by the appellant/complainant is that he had business dealings with the respondents/accused for the supply of plastic bottles of various sizes since September 1997. The respondents had been making payments of all the goods regularly. As per the appellant, Cheque No. 473965 dated 17.12.1997 drawn on Punjab National Bank, Civil Lines, Bhatinda for Rs. 90,000/- was handed over by the respondents to the appellant towards certain outstanding payments. However, on presentation, the said cheque was dishonoured on account of insufficient funds. He immediately contacted the respondents, who apologized for this incidence and promised to make the payment in due course. On the assurance by the respondents, the appellant continued to supply goods to the respondents regularly. It had been stated that the appellant supplied goods to the respondents on 07.01.1998, 09.01.1998, 13.01.1998, 24.01.1998 and 30.01.1998, which was outstanding. The appellant contacted the respondent No. 1 number of times on telephone, however, only verbal assurance was given and the payment was delayed. Even after repeated requests, the accounts could not be settled. On the assurance by the respondents, the appellant again presented the cheque, but the same was again dishonoured with the remarks "Exceeds Arrangement" vide memo dated 11.04.1998. The appellant sent a legal notice dated 16.04.1998 to the accused through registered AD posts on 17.04.1998. However, the said notice was received undelivered on 01.05.1998 with the report that the addressee could not be found after several visits. Still further, the copies of the legal notice dated 16.04.1998 were again sent by the appellant to the respondents vide registered AD on 06.06.1998 and 17.06.1998. However, those were returned back with the same remarks on 20.06.1998 and 27.06.1998. After the appellant made several efforts to serve the notice on the accused by sending copies of the legal notice dated 16.04.1998 through courier but the respondents could not be served. Finally on 04.09.1998, the appellant succeeded in serving the notice on the accused at their residence. The respondent No. 2 received notice and signed her acknowledgement on a copy of the notice. The appellant further alleged in the complaint that after receipt of the illegal notice, the accused was under a legal obligation to make the payment of Rs. 90,000/- within a period of 15 days. However, no such payment was made and, consequently, the complaint was filed by the appellant.

3. I have heard learned counsel for the parties and with their able assistance, I have gone through the trial Court record carefully.

4. Learned counsel for the appellant vehemently argued that the learned trial Court has ignored the evidence on record and the settled law. Learned counsel for the appellant vehemently argued that a notice under Section 138 of the Act was issued within 15 days of the receipt of the intimation regarding dishonour of the cheque. Even, there was no need to issue further legal notices and the learned trial Court

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