Case Note & Summary
The judgment pertains to three criminal petitions filed under Section 482 of the Code of Criminal Procedure, 1973, by the petitioners (Moodalagiriyappa K.L., Smt. Jayamma G, and Smt. Leela M) seeking quashing of complaints filed against them under Section 138 of the Negotiable Instruments Act, 1881, pending before the XXVII Additional Chief Metropolitan Magistrate, Bengaluru. The respondent in all petitions is M/s. Sree Gokulam Chit & Finance Co. (P) Ltd., represented by its GPA holder. The petitioners contended that the statutory demand notice under Section 138 of the NI Act was not served at their correct address. The court examined the complaints and found that the demand notice was sent to an address where the petitioners were not residing at the time of service. The court held that proper service of demand notice is a mandatory requirement for a complaint under Section 138 of the NI Act. Since the notice was not served at the correct address, the essential ingredients of the offence were not made out. The court allowed the petitions and quashed the complaints and all proceedings therein.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Demand Notice - Proper Service - The complaint under Section 138 of the Negotiable Instruments Act, 1881 is liable to be quashed if the statutory demand notice is not served at the correct address of the drawer of the cheque. The court held that the notice sent to an address where the accused was not residing at the relevant time does not constitute proper service, and the proceedings are an abuse of process of law. (Paras 1-10) B) Criminal Procedure Code - Quashing of Proceedings - Section 482 - Abuse of Process - The High Court can exercise its inherent powers under Section 482 of the Code of Criminal Procedure, 1973 to quash criminal proceedings if the complaint does not disclose the essential ingredients of the offence or if the proceedings are manifestly frivolous or vexatious. The court held that where the demand notice was not properly served, the continuation of proceedings would be an abuse of process. (Paras 1-10)
Issue of Consideration
Whether the complaints under Section 138 of the Negotiable Instruments Act, 1881 are liable to be quashed on the ground that the statutory demand notice was not served at the correct address of the accused.
Final Decision
The court allowed the petitions and quashed the complaints and all proceedings in CC No.11702/2017, CC No.11701/2017, and the related case, holding that the demand notice was not properly served at the correct address of the accused.
Law Points
- Proper service of demand notice is mandatory for Section 138 NI Act complaint
- Notice must be sent to the correct address of the drawer
- Quashing under Section 482 CrPC for abuse of process
