Back
RAKESH THAPLIYAL
Ravi Kanyal – Appellant
Versus
State of Uttarakhand – Respondent
JUDGMENT :
RAKESH THAPLIYAL, J.
1. Present C482 application has been filed, challenging the proceedings of Criminal Complaint Case No. 1769 of 2023, Kiran Chandra Joshi vs. Ravi Kanyal, which has been initiated pursuant to the complaint filed by respondent no. 2 under Section 138 of the Negotiable Instruments Act.
2. Brief facts, of the case, are that a cheque was issued by the present applicant on 20.02.2020 to the respondent/complainant for an amount of Rs. 6.50 lakhs which was presented for encashment in the Bank on 15.04.2020, however it was returned back with an endorsement “funds insufficient” and again the same was presented for encashment in the Bank on 21.05.2020, which was returned back with an endorsement that the valid period of the cheque has been expired. Thereafter, the respondent/complainant sent a notice of demand on 18.06.2020 which was replied by the applicant on 29.06.2020, and, thereafter again a notice of demand was sent on 29.08.2020 which was also replied by the applicant on 14.09.2020. When the amount was not paid to the respondent/complainant then he filed complaint under section 138 of the Negotiable Instruments Act on 28.09.2020, in which the Trial Court in
The court upheld the validity of proceedings under Section 138 of the Negotiable Instruments Act, emphasizing the necessity for expeditious trial and the inappropriateness of examining factual aspect....
The presumption of a legally enforceable debt under the Negotiable Instruments Act remains until disproven, and the determination of such issues is a matter for the trial court.
The cause of action for filing a complaint under Section 138 arises after 15 days from the service of the demand notice, not from the notice itself.
A cheque issued as security does not negate potential liability under S.138 of the Negotiable Instrument Act if essential legal conditions are met.
Complaint under Section 138 of the Negotiable Instruments Act is invalid if filed before the mandatory 15-day period post-notice. The court cannot take cognizance until that period has elapsed.
A proper demand notice under Section 138 of the Negotiable Instruments Act is essential before initiating proceedings; failure to comply invalidates the complaint.
Dishonour of cheque – Complaint is not maintainable before expiry of period of fifteen days from date of receipt of notice by drawer of cheque – Remedy is to file fresh complaint.
A notice under Section 138 must clearly demand the cheque amount; ambiguity can invalidate proceedings, but if the demand is sufficiently clear, the notice is valid.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
