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2010 Supreme(MP) 141

IN THE HIGH COURT OF MADHYA PRADESH (JABALPUR BENCH)
U.C. Maheshwari, J.
Appellants: Vishwanath Ghosh
Vs.
Respondent: Ramesh Chandra Sindhi
Cr. R. No. 1569 of 2009
Decided On: 11.02.2010

The cause of action to file a complaint under Section 138 of the Negotiable Instruments Act arises on the expiry of the period prescribed for payment by the drawer of the cheque.

Headnote:

Negotiable Instruments Act - Dishonoured Cheque - Section 138 - 138, 142

Fact of the Case:

The accused issued a cheque to the complainant, which was dishonoured. The complainant sent multiple demand notices, and upon non-payment, filed a complaint under Section 138 of the Negotiable Instruments Act.

Finding of the Court:

The court found that the complaint was not barred by time and upheld the conviction of the accused.

Issues: The main issue was whether the complaint was filed within the statutory time limit as per the provisions of Section 138 of the Negotiable Instruments Act.

Ratio Decidendi: The court relied on the interpretation of the provisions of Section 138 and 142 of the Negotiable Instruments Act, emphasizing that the cause of action to file a complaint arises on the expiry of the period prescribed for payment by the drawer of the cheque.

Final Decision: The court dismissed the revision and directed the accused to surrender to serve the remaining jail sentence.

ORDER

U.C. Maheshwari, J.

1. The applicant/accused has preferred this revision under Section 397/401 of the Code of Criminal Procedure being aggrieved by the judgment dated 10-9-2009 passed by the 1st Addl. Sessions Judge, Tikamgarh in Criminal Appeal No. 66/09, affirming with some modification with respect of the sentence awarded, in default of depositing the fine amount, the judgment dated 6-4-2009 passed by JMFC, Tikamgarh in Criminal Case No. 1881/08, convicting him for the offence under Section 138 of the Negotiable Instruments Act (in short 'the Act') with a direction to undergo one year simple imprisonment with fine/damages of Rs. 3,00,000/-, in default of depositing the same, further 3 months simple imprisonment with further direction that on depositing such sum, the same be given to the Respondent/complainant. It is noted that in appeal in the sentence in default of depositing the aforesaid sum, has been set aside by the Appellate Court.

2. The facts giving rise to this revision in short are that there was some regular loan transaction between the Respondent/complainant and the applicant. In connection of such transaction, to make payment to the Respondent, the applicant gave him a cheque of Rs. 3 lacs dated 28-1-2004 bearing No. 0009011 drawn from Union Bank of India, Branch Tikamgarh. After receiving the cheque, the same was deposited by the Respondent with his banker Zila Sahkari Kendriya Bank, Tikamgarh for its collection but the same was dishonoured and was received back unpaid by the Respondent from his banker with a memo dated 31-1-2004 stating that same has been dishonoured on account of insufficiency of fund in the account. Thereafter, the Respondent, through his Counsel, sent the demand notice dated 9-2-2004 and 26-2-2004 to the applicant. The same were received back with an endorsement that addressee was not available. Thereafter again a notice dated 23-3-2004 was sent to the applicant through registered post. The same was served but in spite that within the prescribed period, in compliance of the notice, payment of the cheque was not made, on which, Respondent filed the impugned complaint against the applicant on 7-5-2004 for the offence under Section 138 of the Act. After taking cognizance of the matter by the trial Court, the applicant was summoned. After his appearance, on recording the plea, the applicant abjured the same, on which the trial was held. After recording the evidence, on appreciation of the same, by holding guilty to the applicant, the trial Court has convicted and sentenced him as stated above, on which, the appeal was filed by the applicant. After extending the opportunity of hearing, the sentence awarded to the applicant, with respect of making default in depositing the damages amount, was set aside while the other findings of the trial Court were affirmed by the Appellate Court. Being dissatisfied with such judgment, the applicant has come forward to this Court with this revision.

3. Shri Ashish Tiwari, learned Counsel of the applicant while arguing the case on admission, by referring the exhibited documents and the recorded evidence said that as per case of the complainant the impugned cheque was dishonoured and its information was received by the applicant from the bank through memo dated 31-1-2004 therefore the initial cause of action arose to the Respondent for issuing the demand notice on such date. As per provision of Section 138(b) of the Act, such demand notice was to be issued within thirty days from such date. A1 though, as per the available evidence on record, the initial notices dated 9-2-2004 and 26-2-2004 were sent by the Respondent to the applicant during such period but due to non-availability of Respondent, the same were not served. The notice which was served on the Respondent was sent on 23-3-2004. The same was barred by thirty days from 31-2-2004, the date of initial cause of action. According to his submission, the limitation for issuing the demand notice ought to have










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