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2023 Supreme(All) 693

IN THE HIGH COURT OF ALLAHABAD
SURESH KUMAR GUPTA, J.
Prashant Chandra - Applicant
Versus
State of U.P. Thru. Prin. Secy. Home, Lko. and Others - Opposite Parties
Application U/s 482 No. 4587 of 2023
Decided On : 10-05-2023

Advocates:
Advocate Appeared:
For the Applicant : Vivek Kumar Rai, Radhika Singh.

Headnote:

Criminal Procedure Code, 1973 – Section 203, 482 –Negotiable Instrument Act, 1881 – Section 138 (b) – Cheque was dishonored because of "Insufficient Funds" – Dishonored cheque and a demand for payment – Legal liability regarding cheque – Held, High Court held that amount of cheque has been clearly mentioned in notice – It may also be added that after service of notice no amount was tendered by applicant, in case he would have tendered amount of cheque, it might have been argued that no offence under Section 138 of Act, 1881 is made out – Applicant cannot avoid payment after service of notice on ground that cost of notice was also demanded – Allowed.

JUDGMENT :

1. Supplementary affidavit filed today by the learned counsel for the applicant is taken on record.

2. Heard learned counsel for the applicant, learned A.G.A. for the State and perused the record.

3. In view of order proposed to be passed, issuance of notice to private opposite parties is dispensed with.

4. The present application under Section 482 Cr.P.C. has been filed with the prayer to quash the impugned order dated 25.4.2023 passed by the Additional Court no.2, Lucknow U/s 203 CrPC in Complaint No. 94684 of 2022, under Section 138 of the Negotiable Instruments Act, Police Station-Hazratganj, District-Lucknow and a direction may be issued to the court concerned to treat the demand notice dated 4.8.2022 as a valid notice of cheque amount of Rs. 50 lacs and summon the accused persons in accordance with law and conclude the trial at the earliest.

5. Learned counsel for applicant has submitted that the applicant presented the cheque of Rs. 50 lacs on 10.05.2022 bearing cheque no. 025605 drawn on Axis Bank Limited, Mahanagar with his Banker, Bank of Baroda, Branch-Joppling Road, Lucknow, after opposite parties had given clearance but the same was dishonored vide bank return memo dated 03.08.2022 recording that the cheque was dishonored because of "Insufficient Funds".

6. It is further submitted by the learned counsel for the applicant that learned trial court dismissed the complaint under section 203 Cr.P.C. with perverse finding that the demand notice served to the accused persons is bad whereas the demand notice dated 04.08.2022 is wholly legal and as per the provisions of section 138 (b) Negotiable Instrument Act, 1881 (hereinafter referred to as "the Act, 1881") as well as the law laid down by the Apex Court in Suman Sethi Versus Ajay K. Churiwal and another (2000) 2 SCC 380 as in the demand notice dated 04.08.2022 there is break-up of the cheque amount of Rs. 50 lacs, and another amount of Rs. 50 lacs has been mentioned by virtue of the provisions contained in Section 138 of the Act 1881 along with 21 percent interest with quarterly interests w.e.f. 05.10.2022, as such the said demand notice cannot be termed as bad in the eye of law.

7. Further submission of the learned counsel for the applicant that the opposite parties gave two cheques dated 28.03.2022 bearing cheque no. 024363 for a sum of Rs. 11 lacs drawn on Axis Bank Limited, Mahanagar, Lucknow and another cheque dated 10.05.2022 bearing cheque no. 025605 drawn on Axis Bank Limited, Mahanagar, Lucknow for a sum of Rs. 50 lacs from the account of the opposite party no. 2 duly signed by the opposite party no.3. The petitioner deposited the cheque for Rs. 11 lacs on 28.06.2022 but the same was dishonored. The petitioner apprised the opposite parties about the dishonor of the said cheque and expressed his displeasure regarding the manner in which the opposite parties had deceitfully exacted a huge amount of Rs. 56 lacs from the petitioner. Impertinently the opposite parties maintained that things had got delayed because of the after effects of COVID and the funds will soon be arranged for clearance of the cheques.

8. Learned counsel for the applicant has further submitted that the applicant filed the complaint under Section 138 of the Act, 1881 read with Section 142 of the Act, 1881 well within time before the Court of Additional Chief Judicial Magistrate-VI, Lucknow on 19.09.2022 which was admitted and transferred to Additional Court No. 2, Lucknow on the very next date.

9. It is further submitted that the notice dated 04.08.2022 which was issued under section 138(b) upon the cheque having been dishonored categorically mentioned the amount indicated in the dishonored cheque and a demand for payment of a sum of Rs. 50 lacs was made. Since the offence as per section 138 is deemed to have been committed upon dishonor of the cheque, the notice sent on behalf of the petitioner (complainant) also apprises the drawer about the cheque of the consequences of non-payment and me

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