Case Note & Summary
The applicant, Smt. Ramilaben Trikamlal Shah, filed a complaint under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 against the respondents, including a partnership firm and its partners, for dishonour of a cheque. The learned Special Metropolitan Magistrate issued process against the accused. The applicant challenged the order dated 19th June 2006 passed by the Magistrate. The respondents filed an application under Section 482 of the Code of Criminal Procedure, 1973 seeking quashing of the complaint. The main issue was whether the notice of demand was served within 15 days of the receipt of information regarding dishonour as required under Section 138(b) of the Act. The court examined the dates: the cheque was dishonoured on 7th February 2005, the applicant received the cheque return memo on 9th February 2005, but the notice was sent only on 25th February 2005, which was beyond the 15-day period. The court held that the requirement of serving notice within 15 days is mandatory and the complaint was not maintainable. Consequently, the court allowed the application and quashed the complaint.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Notice of Demand - Section 138(b) Negotiable Instruments Act, 1881 - The complaint under Section 138 was quashed as the notice of demand was not served within 15 days of the receipt of information regarding dishonour of the cheque. The court held that the requirement of serving notice within 15 days is mandatory and non-compliance renders the complaint not maintainable. (Paras 1-5)
Issue of Consideration
Whether the complaint under Section 138 of the Negotiable Instruments Act, 1881 is maintainable when the notice of demand was not served within 15 days of the receipt of information regarding the dishonour of the cheque.
Final Decision
The application is allowed. The complaint and the order issuing process are quashed.
Law Points
- Notice of demand must be served within 15 days of receipt of information of dishonour
- Section 138(b) Negotiable Instruments Act
- 1881
- Quashing under Section 482 CrPC
- Complaint not maintainable if notice period not complied with
