Bombay High Court Quashes FIR in Cheque Dishonour Case Due to Lack of Proper Service of Demand Notice. Service of notice under Section 138 of Negotiable Instruments Act, 1881 must be proved by actual delivery or proper postal endorsement; mere dispatch is insufficient.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
  • 4
Judgement Image
Font size:
Print

Case Note & Summary

The petitioner, Ananda Rao Kanthamaneni, filed a Criminal Writ Petition under Article 226 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No. 1031 of 2009 registered at Shrirampur City Police Station, District Ahmednagar, for an offence under Section 138 of the Negotiable Instruments Act, 1881. The FIR was lodged by respondent No.2, Raman Kutti Nayar, alleging that a cheque issued by the petitioner was dishonoured. The petitioner contended that the demand notice was not served upon him, as the postal endorsement showed 'not claimed' and there was no evidence of actual delivery. The court, after hearing the parties, observed that the essential ingredient of service of notice under Section 138 was not satisfied. The court noted that mere dispatch of notice is not enough; the prosecution must prove that the notice was actually delivered or that the accused deliberately avoided service. Since the postal endorsement was 'not claimed' and there was no further evidence, the court held that the FIR was liable to be quashed to prevent abuse of process. The court allowed the petition and quashed the FIR.

Headnote

A) Criminal Law - Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Service of Notice - The petitioner sought quashing of FIR alleging dishonour of cheque. The court held that the demand notice was not properly served as the postal endorsement 'not claimed' was not sufficient to prove service. The court quashed the FIR as the essential ingredient of service of notice was missing. (Paras 1-5)

B) Criminal Procedure Code - Inherent Powers - Section 482 - Quashing of FIR - The court exercised inherent powers to quash the FIR to prevent abuse of process of law, as the continuation of proceedings would be futile. (Para 5)

Subscribe to unlock Headnote Subscribe Now

Issue of Consideration

Whether the FIR under Section 138 of the Negotiable Instruments Act, 1881 can be quashed on the ground that the demand notice was not properly served upon the accused.

Subscribe to unlock Issue of Consideration Subscribe Now

Final Decision

The court allowed the petition and quashed the FIR No.1031 of 2009 registered at Shrirampur City Police Station.

Law Points

  • Service of demand notice under Section 138 of Negotiable Instruments Act
  • 1881 must be proved by actual delivery or proper postal endorsement
  • mere dispatch is insufficient
  • Quashing of FIR under Section 482 CrPC for abuse of process
Subscribe to unlock Law Points Subscribe Now

Case Details

2010 LawText (BOM) (02) 7

Criminal Writ Petition No.1031 of 2009

2010-02-04

P.R. Borkar

V.D. Hon instructed by V.G. Sakolkar for Petitioner, Smt. B.R. Khekale (APP) for Respondent No.1, N.S. Chaudhari for Respondent No.2

Ananda Rao Kanthamaneni

State of Maharashtra, Raman Kutti Nayar

Subscribe to unlock Case Details (Citation, Judge, Date & more) Subscribe Now

Nature of Litigation

Criminal writ petition for quashing of FIR under Section 138 of Negotiable Instruments Act, 1881.

Remedy Sought

Petitioner sought quashing of FIR No.1031 of 2009 registered at Shrirampur City Police Station.

Filing Reason

Petitioner alleged that the demand notice under Section 138 was not properly served upon him.

Issues

Whether the FIR under Section 138 of the Negotiable Instruments Act, 1881 can be quashed on the ground that the demand notice was not properly served upon the accused.

Submissions/Arguments

Petitioner argued that the demand notice was not served as the postal endorsement was 'not claimed' and there was no evidence of actual delivery. Respondent No.2 argued that the notice was sent by registered post and the endorsement 'not claimed' amounts to service.

Ratio Decidendi

For an offence under Section 138 of the Negotiable Instruments Act, 1881, the prosecution must prove that the demand notice was actually served on the accused. Mere dispatch of notice or postal endorsement 'not claimed' is not sufficient to prove service. The FIR was quashed as the essential ingredient of service of notice was missing, and continuation of proceedings would be an abuse of process.

Judgment Excerpts

Heard Shri V.D. Hon, learned Advocate instructed by Shri V.G. Sakolkar Advocate for the petitioners, Smt.B.R. Khekale, learned A.P.P. for Respondent No.1 and Shri N.S.Chaudhari, learned Advocate for Respondent no.2. This writ petition is filed for quashing and setting aside the FIR.

Procedural History

The petitioner filed a Criminal Writ Petition under Article 226 of the Constitution of India read with Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No.1031 of 2009 registered at Shrirampur City Police Station. The matter was heard at the admission stage with consent of parties and disposed of finally.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138
  • Code of Criminal Procedure, 1973: 482
Subscribe to unlock full Legal Analysis Subscribe Now
Related Judgement
High Court Bombay High Court Quashes FIR in Cheque Dishonour Case Due to Lack of Proper Service of Demand Notice. Service of notice under Section 138 of Negotiable Instruments Act, 1881 must be proved by actual delivery or proper postal endorsement; mere dispat...
Related Judgement
High Court High Court of Karnataka Dismisses Appellant's Second Appeal in Partition Suit — No Substantial Question of Law. Concurrent findings of fact regarding joint family property and limitation upheld under Section 100 CPC.