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2006 Supreme(All) 1494

IN THE HIGH COURT OF ALLAHABAD
SHIV SHANKAR
JAI DURGA ENTERPRISES - Appellant
Versus
STATE OF UTTAR PRADESH - Respondents
Crl. Misc. Appln 11313 Of 2005
Decided On : 05/17/2006

Advocates Appeared:
Devendra Saini, I.P.Singh

The sufficiency of service of legal notice and the examination of the nature of the cheque based on evidence are crucial in determining the validity of a summoning order under Section 138 of the Negotiable Instruments Act.

Headnote:

Negotiable Instruments Act - Summoning Order - Section 138 - Section 27 of The General Clauses Act, 1897 - Summary

Fact of the Case:

The applicants were summoned for trial under Section 138 of the Negotiable Instruments Act based on a complaint filed by the opposite party, alleging dishonor of a cheque. The applicants filed an objection against the summoning order, which was rejected by the court below. The present application was filed to quash the order.

Finding of the Court:

The court found that there was no sufficient service of legal notice upon the applicants/accused, and the impugned order passed by the court below was liable to be quashed.

Issues: The issues involved the service of notice and whether a prima facie case was made out for the offence under Section 138 of the Negotiable Instruments Act.

Ratio Decidendi: The court relied on Section 27 of The General Clauses Act, 1897 to determine the sufficiency of service of legal notice. It also emphasized that the plea regarding the nature of the cheque should be examined at the trial stage based on evidence.

Final Decision: The application was allowed, and the impugned order was set aside, quashing the proceedings pending before the court below.

( 1 ) APPLICATION under Section 482 Cr. P. C. has been filed by M/s Jai Durga enterprises and Dharmendra Singh, applicants against respondent No. 2, M/s Indo automobiles praying to quash the order dated 2. 4. 2005 passed in criminal case No. 1113/ 2005, m/s Indo auto Mobiles vs. M/s jai Durga Enterprises, under Section 138 of Negotiable Instruments Act. P. S. Kotwali nagar, District Saharanpur passed by Judicial Magistrate 1st, Saharanpur whereby the applicants/accused were summoned for trial.

( 2 ) BRIEF facts arising out of this application are that opposite party No. 2, M/s Indo automobiles filed criminal complaint against the above applicants/accused, wherein it was stated that he was manufacturer of tractors under the name of Indo Firm Equipment Limited and supplying tractors to its customers and under the transaction of said tractor the applicants were liable to pay Rs. 13,22,000/- to which the applicants have given a cheque of Rs. 13,22,000/- dated 29. 4. 04 to opposite party no. 2/complainant, which was presented by him in his banker and the same was dishonoured by the bank After the dishonour of the cheque, opposite party No. 2 gave a notice on 18. 5. 2004 to the applicants, which was not received by the applicants, then, the complaint was filed by opposite party No. 2 against the applicants. Thereafter, statement of complainant was recorded by the court below under Section 200 Cr. P. C. Then, he was summoned for the trial for the offence under Section 138 Negotiable Instruments Act.

( 3 ) FEELING aggrieved by its, the applicants/accused filed an objection against the summoning order, which was rejected by the court below vide order dated 2. 4. 2005. Thereafter, this application has been filed in this court.

( 4 ) HEARD the argument of learned counsel for both the parties and perused the record.

( 5 ) IT is contended on behalf of the applicants that they did not receive any notice from opposite party no. 2 as provided under section 138 Negotiable Instruments Act. It is further contended that the applicants have been given only signed and dated blank cheque to opposite party No. 2 and entry made on the said cheque was done, which was made by opposite party no. 2 himself. It cannot be said that the applicants have given any consent to opposite party No. 2. The said cheque was in possession of opposite party No. 2 for collateral security. The said transaction had not only attracted the provision of Section 138 Negotiable Instruments act but was also covered by section 87 of the Act. The said undated cheque was given by the applicants to respondent No. 2 as security. Therefore, the complaint filed on behalf of opposite party No. 2 was not maintainable and court below has committed illegality in passing the summoning order as no prima facie case was made out against the applicants.

( 6 ) ON the other hand, it is submitted that there is no illegality in passing the impugned order by the court below. Therefore, this application is liable to be dismissed.

( 7 ) SO far as the first ground regarding service of notice is concerned, it has been specifically mentioned in the complaint by opposite party No. 2 that one notice under registered post and one notice under U. P. C. were sent by opposite party No. 2/complainant to the accused/applicants on 18. 5. 2004. Notice under registered post had been returned by the postman by endorsing false report while the notice sent under U. P. C. was received by him.

( 8 ) THEREFORE, it appears that the notice sent by registered post was not served upon the applicants/accused. It is the admitted case of the complainant/respondent No. 2. So far as the notice sent under U. P. C. may be treated as legal notice for the purpose of service.

( 9 ) IN this regard, it is essential Section 27 of The General Clauses Act, 1897 be produced, which runs as under :-"meaning of service by post.- Where any (Central Act) or Regulation made after the commencement of this Act authorizes or requires any document to









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