Bombay High Court Quashes FIR in Cheque Dishonour Case Due to Improper Service of Demand Notice. Notice sent by UPC (Under Postal Certificate) held insufficient to constitute valid service under Section 138 of Negotiable Instruments Act, 1881.

High Court: Bombay High Court Bench: AURANGABAD In Favour of Accused
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Case Note & Summary

The applicant, Rushikesh Hanumant Sutar, filed a criminal application under Section 482 of the Code of Criminal Procedure, 1973 seeking quashing of FIR No. 86 of 2018 registered at Vashi Police Station, Osmanabad for offence under Section 138 of the Negotiable Instruments Act, 1881. The dispute arose from a cheque issued by the applicant which was dishonoured. The respondent-complainant sent a demand notice through UPC (Under Postal Certificate) instead of registered post. The applicant contended that the notice was not properly served as required by law. The court examined the provisions of Section 138 of the Negotiable Instruments Act, which mandates that the payee must make a demand for payment by giving a notice in writing to the drawer of the cheque within thirty days of the receipt of information of dishonour. The mode of service is not explicitly prescribed but judicial precedents require that the notice be sent by registered post or any other mode that ensures proper delivery. The court found that sending notice by UPC does not guarantee delivery and is not a valid mode of service. Consequently, the essential ingredient of the offence was not satisfied. The court allowed the application and quashed the FIR. The judgment emphasizes strict compliance with procedural requirements under the Negotiable Instruments Act.

Headnote

A) Negotiable Instruments Act - Dishonour of Cheque - Service of Demand Notice - Section 138 - The court considered whether a demand notice sent by UPC (Under Postal Certificate) constitutes valid service under Section 138 of the Negotiable Instruments Act, 1881. The court held that sending notice by UPC is not a recognized mode of service under the Act and thus the complaint is not maintainable. The FIR was quashed. (Paras 1-5)

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Issue of Consideration

Whether the FIR for offence under Section 138 of the Negotiable Instruments Act, 1881 can be quashed on the ground that the demand notice was sent by UPC (Under Postal Certificate) and not by registered post, and whether such service is valid.

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Final Decision

The court allowed the application and quashed FIR No. 86 of 2018 registered at Vashi Police Station, Osmanabad for offence under Section 138 of the Negotiable Instruments Act, 1881.

Law Points

  • Service of demand notice under Section 138 of Negotiable Instruments Act
  • 1881 must be by registered post or authorized mode
  • UPC notice is insufficient
  • Dishonour of cheque
  • Quashing of FIR
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Case Details

2019 LawText (BOM) (01) 13

Criminal Application No.3401 of 2018

2019-01-16

S.S. Shinde, R.G. Avachat

Mr. Nikhil S. Tekale for Applicant, Mr. D.R. Kale, A.P.P. for Respondent Nos.1 and 2, Mr. V.D. Gunale for Respondent No.3 (Absent)

Rushikesh s/o Hanumant Sutar

The State of Maharashtra, The Police Inspector, Sanjay s/o Nilkanthrao Lakhe (Patil)

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Nature of Litigation

Criminal application under Section 482 CrPC for quashing of FIR for offence under Section 138 of Negotiable Instruments Act, 1881.

Remedy Sought

Quashing of FIR No. 86 of 2018 registered at Vashi Police Station, Osmanabad.

Filing Reason

The applicant alleged that the demand notice was sent by UPC (Under Postal Certificate) which is not a valid mode of service under Section 138 of the Negotiable Instruments Act, 1881.

Issues

Whether the demand notice sent by UPC (Under Postal Certificate) constitutes valid service under Section 138 of the Negotiable Instruments Act, 1881.

Submissions/Arguments

The applicant argued that the notice was not properly served as required by law, as it was sent by UPC and not by registered post. The respondent-complainant did not appear to argue the case.

Ratio Decidendi

The demand notice under Section 138 of the Negotiable Instruments Act, 1881 must be sent by a mode that ensures proper service; sending by UPC (Under Postal Certificate) is not a valid mode of service and renders the complaint not maintainable.

Judgment Excerpts

This Application is filed by the Applicant praying therein to quash and set aside the FIR No.86 of 2018 registered at Vashi Police Station, Dist.Osmanabad for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. The notice was sent by UPC (Under Postal Certificate) and not by registered post.

Procedural History

The applicant filed Criminal Application No.3401 of 2018 under Section 482 CrPC before the High Court of Judicature at Bombay, Bench at Aurangabad, seeking quashing of FIR No.86 of 2018. The court heard the matter and pronounced judgment on 16th January 2019.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138
  • Code of Criminal Procedure, 1973: 482
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High Court Bombay High Court Quashes FIR in Cheque Dishonour Case Due to Improper Service of Demand Notice. Notice sent by UPC (Under Postal Certificate) held insufficient to constitute valid service under Section 138 of Negotiable Instruments Act, 1881.
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