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2014 Supreme(SC) 529

Supreme Court of India
RANJANA PRAKASH DESAI & N.V. RAMANA, JJ.
M/s. Ajeet Seeds Ltd.
Versus
K. Gopala Krishnaiah
Criminal Appeal No. 1523 of 2014 [Arising Out of Special Leave Petition (Crl.)No. 8783 of 2013]
Decided On : 16-07-2014

Advocates Appeared:
For the Appellant:Sudhanshu S. Choudhari, Advocate.
For the Respondent:Amol Nirmalkumar Suryawanshi, Advocate.

Headnote:

Criminal Procedure Code, 1973 – Section 482Negotiable Instruments Act, 1881 – Section 138Evidence Act – Section 114General Clauses Act, 1897 – Section 27 –Disposal of Appeal – Respondent-accused filed a criminal revision application before the Additional Sessions Judge, Aurangabad mainly on the assertion that demand notice was not served on said criminal revision application was rejected – Being aggrieved by said order respondent-accused filed criminal writ petition in High Court High Court quashed the complaint on a short ground that on reading verification of complaint explicit that there are no recitals to demonstrate that notice issued under Section 138 of the NI Act by complainant was served upon the respondent-accused on any specific date – Held, High Court also erred in quashing the complaint on ground that there was no proof either that the notice was served or it was returned unserved/unclaimed matter of evidence mention that in Court did not deviate from view taken in Vinod Shivappa but reiterated view expressed therein with certain clarification. We have already quoted the relevant paragraphs from Vinod Shivappa where this Court has held that service of notice is a matter of evidence and proof and it would be premature at stage of issuance of process to move High Court for quashing of proceeding observations are squarely attracted to the present case High Court’s reliance on an order passed by a two-Judge Bench in Shakti Travel & Tours is misplaced – Appeal is allowed.

Judgement Key Points

Ratio Decidendi:

In a complaint under Section 138 of the Negotiable Instruments Act, it is sufficient for the complainant to aver that a demand notice was sent by registered post to the correct address of the accused. This gives rise to a presumption of service under Section 27 of the General Clauses Act and Section 114 of the Evidence Act. There is no requirement for the complaint to contain specific recitals about the date of service, proof of actual service, or that the notice was returned unserved or unclaimed. (!) [1000546040008][1000546040009][1000546040010] (!) (!) (!)

The question of whether the notice was actually served, refused, evaded, or whether any postal endorsement was manipulated is a matter of evidence and proof to be determined at trial. It is premature to seek quashing of proceedings under Section 482 CrPC at the stage of issuance of process based on alleged insufficiency regarding service of notice.[1000546040007][1000546040010] (!)

The High Court erred in quashing the complaint solely on the ground of absence of explicit averments or proof regarding service of notice, as presumptions apply unless rebutted by the accused.[1000546040010] (!)


Judgment :

Ranjana Prakash Desai, J.

1. Leave granted.

2. The appellant is the complainant. He has challenged the judgment and order dated 21/03/2013 passed by the High Court of Judicature of Bombay, Bench at Aurangabad in Criminal Writ Petition No.1131 of 2012 whereby the High Court has quashed the complaint filed by him under Section 138 of the Negotiable Instruments Act, 1881 (‘the NI Act’) being SCC No. 4118 of 2007 in the court of Chief Judicial Magistrate, First Class, Aurangabad.

3. For the purpose of disposal of this appeal, it is not necessary to narrate all the facts of the case. Suffice it to say that the complaint was filed alleging that the cheque issued by the respondent-accused for repayment of a legally recoverable debt bounced. On 17/6/2011 learned Magistrate issued process. The respondent-accused filed a criminal revision application before the Additional Sessions Judge, Aurangabad mainly on the assertion that the demand notice was not served on him. The said criminal revision application was rejected. Being aggrieved by the said order, the respondent-accused filed criminal writ petition in the High Court under Section 482 of the Code of Criminal Procedure, 1973 (‘the Cr.P.C.’). The High Court quashed the complaint on a short ground that on reading verification of the complaint dated 17/6/2011, it is explicit that there are no recitals to demonstrate that the notice issued under Section 138 of the NI Act by the complainant was served upon the respondent-accused on any specific date. The High Court observed that there is no proof that either the notice was served or it was returned unserved/unclaimed and that that there is no averment in the complaint about the same. The High Court concluded that, therefore, there could not be a cause of action to prosecute the accused under Section 138 of the NI Act. For coming to this conclusion, the High Court relied on the order of this Court in Shakti Travel & Tours v. State of Bihar & Anr [(2002) 9 SCC 415]. The extract on which the High Court relied upon could be quoted :

“2. The accused who is the appellant, assails the order of the High Court refusing to quash the complaint filed under Section 138 of the Negotiable Instruments Act. The only ground on which the learned counsel for the appellant prays for quashing of the complaint is that on the assertions made in paragraph 8 of the complaint, it must be held that notice has not been served and, therefore, an application under Section 138 could not have been maintained. Undoubtedly, the accused has a right to pay the money within 15 days from the date of the service of notice and only when it fails to pay, is it open for the complainant to file a case under Section 138 of the Negotiable Instruments Act. That being the position and in the complaint itself having not been mentioned that the notice has been served, on the assertions made in para 8, the complainant itself is not maintainable. We accordingly quash the complaint.”

4. We have heard, at some length, Mr. S.S. Choudhari, learned counsel appearing for the appellant. Counsel submitted that the High Court has erred in quashing the complaint on the ground that complaint is silent about service of notice. Counsel submitted that in C.C. Alavi Haji v. Palapetty Muhammed & Anr. [(2007) 6 SCC 555], a three Judge Bench of this Court has conclusively decided this issue. It is held in this case that it is not necessary to aver in the complaint that notice was served upon the accused.

The impugned order, therefore, deserves to be set aside.

5. We are inclined to agree with the counsel for the appellant.

6. In C.C. Alavi Haji, a three-Judge Bench of this Court was dealing with the question referred by a two-Judge Bench for consideration. The referring Bench was of the view that in D. Vinod Shivappa v. Nanda Belliappa [(2006) 6 SCC 456], this Court did not take note of Section 114 of the Evidence Act in its proper perspective. It felt that presumption under Section 114 of the E











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