Case Note & Summary
The judgment pertains to three criminal applications filed by the applicants seeking quashing of criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881. The applicants were accused in separate complaints filed by the respondent-complainant Shyamsunder s/o Nathulaji Vedmutha (Jain) alleging dishonour of cheques. The core issue was whether the statutory demand notice under Section 138 was properly served on the applicants. The court examined the evidence regarding service of notice, noting that the complainant had sent notices by registered post but the acknowledgments were not produced or were not signed by the applicants. The court held that the burden lies on the complainant to prove service of notice, and mere dispatch is insufficient. Since the complainant failed to establish that the notices were actually delivered or deemed to be served, the proceedings were quashed. The court relied on the principle that the requirement of notice is mandatory and its service must be proved to maintain the prosecution.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Service of Demand Notice - Proper service of demand notice is a mandatory requirement for initiating prosecution under Section 138 - The complainant must prove that the notice was sent by registered post or other prescribed mode and that it was actually served or deemed to be served - Held that in the absence of proof of service, the proceedings are liable to be quashed (Paras 5-10).
Issue of Consideration
Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 can be sustained when the complainant fails to prove proper service of the statutory demand notice on the accused.
Final Decision
The court allowed the criminal applications and quashed the proceedings under Section 138 of the Negotiable Instruments Act, 1881 against the applicants.
Law Points
- Service of demand notice
- Section 138 Negotiable Instruments Act
- 1881
- Presumption of service
- Registered post
- Acknowledgment due
