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2007 Supreme(Online)(AP) 4

ANDHRA PRADESH HIGH COURT
M.S. Ramachandra Rao, J
Villa Naga Lakshmi v. Mutta Srinivasa Rao
Criminal Petition Nos. 4350, 4351 and 4352 of 2004



Advocates:
For the Appellants/Petitioners: C. Praveen Kumar
For the Respondents: T. Niranjan Reddy

The amendment to the Negotiable Instruments Act is prospective, not retroactive, affecting the timeline for filing complaints based on the cause of action's occurrence.

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138 and 142 - Issue of delay in filing complaints for dishonoured cheques - The complaints were filed beyond the one-month period from the cause of action arising, due to dishonour of cheques - The amendment to Section 142(b) is prospective, and does not apply retrospectively to cases with pre-existing causes of action - Magistrate exceeding jurisdiction in taking cognizance of complaints filed post-limitations; proceedings quashed. (Paras 26)

(B) Delay in filing complaint - Legal requirement of notice under Section 138(b) and 142 - Right to be heard before condoning delay affirmed; previous judgments on not condoning delays without notice referenced. (Paras 5, 10, 21, 26)

Facts of the case:
The petitioner entered into construction agreements and issued cheques which were dishonoured due to insufficient funds. Complaints were filed after significant delays leading to legal disputes.

Findings of Court:
The delay in the filing of the complaint was not condoned legally, as the necessitated procedures were not adhered to, rendering the proceedings void. Issues dealt with: Application of the amended provision of law, jurisdiction of the Magistrate concerning the cognizance of complaints filed beyond the stipulated limitation period.

Ratio Decidendi: The court ruled that since the cause of action arose before the amendment came into effect, it was improper for the Magistrate to take cognizance of the complaint that exceeded the limitation period set by the pre-amended legislation.

Result: Criminal petitions were allowed, and the proceedings in the criminal cases were quashed.

Table of Content
1. overview of the complaints concerning cheque dishonour. (Para 1 , 2 , 3 , 4)
2. arguments on delay and amendments to the negotiable instruments act. (Para 5 , 6)
3. court's observations on jurisdiction and notice requirements. (Para 7 , 11 , 18)
4. legal findings concerning the timeline of complaints and judicial procedures. (Para 12 , 15 , 16 , 20)
5. final ruling to quash the proceedings. (Para 26)

1. Seeking to have the proceedings in C.C. Nos. 172, 277 and 287 of 2004, on the file of VII Metropolitan Magistrate, Visakhapatnam quashed, the sole accused, in these three criminal cases, has filed Criminal Petition Nos. 4350, 4351 and 4352 of 2004 before this Court. Since the petitioner - accused is the same in all the three cases, and as the question of law which arises for consideration is similar, all the three criminal petitions were heard together and are now being disposed of by a common order.

2. The allegations in the complaint, filed in C.C. No. 172 of 2004 under S.138 and 142 of Negotiable Instruments Act, is that complainant is the absolute owner of 28 sq. yards of undivided and unspecified share of land, from out of an extent of 400 sq. yards situated in Sy. No. 23/5 part Butchirajupalem, which he purchased under Registered sale deed dated 17-10-2001 and Registered Document No. 3170 of 2001. He entered into an agreement for construction of a flat in a plinth area of 825 sft. in Sri Gayatri Nilayam and paid the entire construction cost of the said flat to the accused. On finding that the construction was inferior in quality, and not in accordance with the quality assured, the complainant requested the accused to replace the inferior material with quality material. The accused is said to have expressed her inability to replace the same and to have informed the complainant that, if he was not satisfied with the quality of work done by the accused, she was ready to refund the amount and take back the constructed flat. It is alleged that the accused did not obtain any permission from the Corporation, had induced the complainant and had deceived him to deliver the property. After deliberations and discussions with the Complainant, and other flat owners, the accused is said to have agreed to refund the amount due of Rs. 3,40,000/- by 30th November, 2002 and in turn the complainant had agreed to vacate, and handover vacant possession of the said flat to the accused, on receipt of the entire consideration. The accused is said to have issued cheque bearing No. 319607 dated 30-9-2002 for Rs. 1,40,000/- requesting the complainant to present the cheque by the end of the 1st week of October, 2002. The accused is said to have issued another post dated cheque dated 30-11-2002 for Rs. 2,00,000/-. On the complainant presenting the cheque, through his banker on 12-10-2002, the cheque was returned unpaid for the reason "Insufficient Funds". The complainant got issued registered notice dated 17-10-2002, which was received by the accused on 24-10-2002, to which the accused issued a reply on 26-10-2002. the complainant was filed, nearly a year later, on 16-10-2003. The petition filed to condone the delay in filing the complaint, in Crl. M.P. No. 1140 of 2004, was ordered and the delay was condoned.

3. The allegations in the Complaint, filed in C.C. No. 277 of 2004 under S.138 and 142 of Negotiable Instruments Act, are that the complainant is the absolute owner of 28 Sq. yards of undivided and unspecified share of land, from out of an extent of 400 sq. yards situated in Sy. No. 23/5 part Butchirajupalem, which he purchased under Registered sale deed dated 17-10-2001 and Registered Document No. 3170 of 2001, that he had entered into an agreement for construction of a flat in a plinth area of 825 sft. in Sri Gayatri Nilayam and had paid the entire construction cost of the said flat to the accused. On finding that the construction was inferior in quality, and not in accordance with the quality assured, the complainant requested th









































































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