Case Note & Summary
The case involves two criminal petitions filed by the petitioners (accused) under Sections 428 and 482 of the Code of Criminal Procedure, 1973, seeking quashing of proceedings in PCR No.12658/2008 and C.C. No.14063/2012 arising out of PCR No.1879/2009, pending before the IX Additional Chief Metropolitan Magistrate, Bengaluru. The respondent/complainant had filed complaints under Section 138 of the Negotiable Instruments Act, 1881 alleging dishonour of cheques issued by the petitioners. The petitioners contended that the statutory notice under Section 138 was not sent to their correct address and was not within the prescribed period of 30 days from the date of dishonour. The court examined the records and found that the notice was sent to an address that was not the address of the petitioners as per the cheque or as known to the complainant. The court held that the mandatory requirement of sending notice to the correct address was not complied with, and therefore the complaints were not maintainable. The court also noted that the proceedings were an abuse of process of law. Consequently, the court allowed the petitions and quashed the entire proceedings in both cases.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Notice Requirement - The complainant must send a notice in writing to the drawer of the cheque within thirty days of receipt of information of dishonour, demanding payment of the cheque amount. Failure to comply renders the complaint not maintainable. (Paras 5-7) B) Criminal Procedure Code - Quashing of Proceedings - Section 482 - Abuse of Process - Where the statutory notice under Section 138 NI Act is not sent to the correct address of the accused, the criminal proceedings amount to an abuse of process of law and are liable to be quashed. (Paras 8-10) C) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Address of Drawer - The notice must be sent to the address of the drawer as appearing in the cheque or as known to the complainant. Sending notice to a different address invalidates the notice. (Paras 5-7)
Issue of Consideration
Whether the criminal proceedings for cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881 are liable to be quashed when the statutory notice was not sent to the correct address of the accused and was not within the prescribed period.
Final Decision
The court allowed both criminal petitions and quashed the entire proceedings in PCR No.12658/2008 and C.C. No.14063/2012.
Law Points
- Notice under Section 138 NI Act must be sent to the correct address of the drawer
- Notice must be sent within 30 days of dishonour
- Quashing under Section 482 CrPC for abuse of process
