Case Note & Summary
The applicants, who were original accused in a complaint under Section 138 of the Negotiable Instruments Act, 1881, filed a criminal application before the Bombay High Court seeking quashing of the proceedings. The complaint was filed by the respondent-complainant alleging dishonour of a cheque issued by the applicants. The core issue was whether the notice of demand sent by the complainant to the accused via Under Postal Certificate (UPC) complied with the statutory requirement under Section 138(b) of the NI Act. The court heard arguments from the applicants' counsel, who contended that notice by UPC is not a valid mode of service as it does not ensure actual receipt by the accused. The State's APP supported the complaint. The court analyzed the provision and held that the requirement of 'giving notice in writing' under Section 138(b) mandates a mode that ensures receipt, such as registered post or courier with proof of delivery. UPC does not provide any proof of delivery and is therefore insufficient. Consequently, the court quashed the criminal proceedings against the applicants, allowing the application.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Notice of Demand - Section 138(b) - Validity of Notice sent by UPC - The court considered whether notice sent by Under Postal Certificate (UPC) satisfies the requirement of 'giving notice in writing' under Section 138(b) of the Negotiable Instruments Act, 1881. Held that notice by UPC is not a valid mode of service as it does not ensure receipt by the addressee, and thus the complaint is not maintainable. (Paras 1-5)
Issue of Consideration
Whether the notice of demand under Section 138(b) of the Negotiable Instruments Act, 1881 sent by Under Postal Certificate (UPC) is a valid notice in the eyes of law?
Final Decision
The court allowed the criminal application and quashed the proceedings in the complaint under Section 138 of the Negotiable Instruments Act, 1881.
Law Points
- Notice under Section 138 NI Act must be sent by registered post or authorized mode
- UPC is insufficient
- Quashing of criminal proceedings for lack of proper notice
