Case Note & Summary
The appellant, Tarachand Paliwal (since deceased, represented by his legal heir Rupesh Paliwal), filed a criminal appeal against the acquittal of the respondents in a complaint under Section 138 of the Negotiable Instruments Act, 1881. The complaint alleged that a cheque issued by the respondent company was dishonoured. The trial court acquitted the respondents on the ground that the notice of dishonour was not issued within the prescribed period of 15 days from the date of receipt of information from the bank. The appellant contended that he received information on 23rd May, 1997, and issued notice on 4th June, 1997, which was within time. The respondents argued that the date of knowledge was earlier. The High Court examined the evidence, including the cheque return memo and the complainant's testimony, and found that the complainant had proved that he received information on 23rd May, 1997. The court held that the notice was valid and the complaint was maintainable. The appeal was allowed, the acquittal was set aside, and the case was remanded to the trial court for fresh decision on merits.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Notice Period - Section 138 proviso (b) - The controversy pertains to the correct date of knowledge of dishonour by the complainant. The complainant contended that he received information on 23rd May, 1997, while the respondents disputed it. The court examined the evidence and held that the notice was issued within 15 days from 23rd May, 1997, and thus the complaint was maintainable. (Paras 3-10) B) Negotiable Instruments Act - Dishonour of Cheque - Burden of Proof - Section 138 - The burden lies on the complainant to prove the date of receipt of information from the bank regarding dishonour. In this case, the complainant successfully discharged that burden through oral and documentary evidence. (Paras 5-8) C) Negotiable Instruments Act - Dishonour of Cheque - Limitation for Filing Complaint - Section 142 - The complaint must be filed within one month of the cause of action arising. The court found that the complaint was filed within time as the notice was valid and the cause of action arose after the expiry of 15 days from receipt of notice. (Paras 11-15)
Issue of Consideration
Whether the notice of dishonour under proviso (b) to Section 138 of the Negotiable Instruments Act, 1881 was issued within the prescribed period of 15 days from the date of receipt of information by the complainant from the bank regarding dishonour of the cheque.
Final Decision
The appeal is allowed. The impugned judgment and order of acquittal is set aside. The case is remanded to the trial court for fresh decision on merits in accordance with law.
Law Points
- Section 138 Negotiable Instruments Act
- 1881
- proviso (b) notice period
- date of receipt of information from bank
- computation of limitation
- burden of proof on complainant to prove date of knowledge
