Case Note & Summary
The applicants, who were the original accused in a criminal case under Section 138 of the Negotiable Instruments Act, 1881, filed an application under Section 482 of the Criminal Procedure Code, 1973, seeking quashing of Criminal Case No.144/Misc/2001 (renumbered as 81/S/2003) pending before the learned Metropolitan Magistrate, 34th Court, at Vikhroli, Mumbai. The case arose from a complaint filed by Respondent No.1, Shankar K. Mathod, alleging dishonour of a cheque issued by the applicants. The applicants contended that the notice of demand required under Section 138 of the NI Act was not properly served upon them, as it was sent to an incorrect address. The court examined the record and found that the notice was indeed sent to an address that was not the applicants' correct address, and there was no evidence that the applicants had received the notice or had knowledge of it. The court held that the mandatory requirement of service of notice under Section 138 NI Act was not satisfied, and therefore, the criminal proceedings could not be sustained. The court also noted that Respondent No.1 had not appeared despite service of notice, indicating lack of interest in prosecuting the matter. Consequently, the court allowed the application and quashed the criminal proceedings against the applicants.
Headnote
A) Criminal Law - Dishonour of Cheque - Section 138 Negotiable Instruments Act, 1881 - Notice of Demand - The court considered whether the notice of demand was properly served on the accused. The court found that the notice was sent to an incorrect address and the accused had no knowledge of the same. Held that the proceedings under Section 138 NI Act are liable to be quashed as the mandatory requirement of service of notice was not complied with. (Paras 4-6) B) Criminal Procedure - Quashing of Proceedings - Section 482 Criminal Procedure Code, 1973 - Inherent Powers - The court exercised its inherent powers under Section 482 Cr.P.C. to quash the criminal proceedings to prevent abuse of process of court. Held that where the foundational requirement of notice is not satisfied, continuation of proceedings would be an abuse of process. (Paras 6-7)
Issue of Consideration
Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881, can be quashed when the notice of demand was not properly served on the accused?
Final Decision
The court allowed the application and quashed Criminal Case No.144/Misc/2001 (renumbered as 81/S/2003) pending before the learned Metropolitan Magistrate, 34th Court, at Vikhroli, Mumbai.
Law Points
- Section 138 Negotiable Instruments Act
- 1881
- Section 482 Criminal Procedure Code
- 1973
- Quashing of criminal proceedings
- Dishonour of cheque
- Notice of demand
- Proper service
