Case Note & Summary
The case involved an appeal against the dismissal of a writ application by the Bombay High Court, which upheld an order of the Sessions Court refusing to interfere with a Chief Judicial Magistrate's order taking cognizance of an offence under Section 138 of the Negotiable Instruments Act, 1881. The complainant, Surendra Madhavrao Nighojkar, filed a complaint alleging that the appellant, Ashok Yeshwant Badave, had issued a post-dated cheque that was dishonoured due to insufficient funds. The cheque was presented for encashment after the expiry of six months from the date it was handed over but within six months from the date mentioned on the cheque. The appellant contended that no offence was made out under Section 138 as the cheque was presented after the six-month period from the date it was made over. The Supreme Court analyzed the legal implications of post-dated cheques and referenced previous judgments, concluding that the six-month period for presentation should be counted from the date on the cheque. The court held that the prosecution was valid as the cheque was presented within the required timeframe, leading to the dismissal of the appeal.
Headnote
A) Negotiable Instruments - Dishonour of Cheque - Presentation Period - Six-month period for presentation of cheque under Section 138 - The period must be reckoned from the date mentioned on the cheque, not the date it was handed over. The court held that a post-dated cheque is deemed to be drawn on the date it bears, thus the prosecution under Section 138 was valid as the cheque was presented within six months from its date (Paras 7-8).
Issue of Consideration
Whether the six-month period for presentation of a cheque under Section 138 of the Negotiable Instruments Act should be reckoned from the date mentioned on the cheque or the date it was made over by the drawer.
Final Decision
The Supreme Court dismissed the appeal, holding that the prosecution under Section 138 was valid as the cheque was presented within six months from the date mentioned on it.
Law Points
- Negotiable Instruments Act
- 1881
- Section 138
- post-dated cheque
- six months presentation period
- dishonour of cheque
- legal enforceability
