Bombay High Court Quashes FIR in Cheque Dishonour Case Due to Improper Service of Demand Notice. Service of notice by Under Postal Certificate (UPC) instead of registered post with acknowledgement due does not meet the requirement of Section 138 of the Negotiable Instruments Act, 1881, leading to quashing of FIR.

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

The applicants, Suhas @ Pappu s/o Sarjerao Kakade and Sachin s/o Vithalrao Dagdu, filed a criminal application under Section 482 of the Code of Criminal Procedure, 1973 before the Bombay High Court, Aurangabad Bench, seeking quashing of FIR No.75 of 2016 registered at Basmathnagar Police Station, District Hingoli, for offences under Section 138 of the Negotiable Instruments Act, 1881. The FIR was lodged by respondent No.2, Jitendra s/o Ramesh Kamlu, alleging that a cheque issued by the applicants was dishonoured. The applicants contended that the demand notice was sent by Under Postal Certificate (UPC) and not by registered post with acknowledgement due, which is mandatory under the proviso to Section 138. The court examined the requirement of proper service of notice. The learned counsel for the applicants argued that the notice must be sent by registered post or by courier or by any other mode as prescribed, and that UPC does not satisfy this requirement. The learned APP for the State and the counsel for respondent No.2 opposed the application, but the court found that the notice was not served in accordance with law. The court held that the essential ingredient of proper service of demand notice was missing, and therefore, the FIR was liable to be quashed. The court allowed the application and quashed the FIR.

Headnote

A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Service of Demand Notice - The complainant sent notice by UPC (Under Postal Certificate) and not by registered post with acknowledgement due - Held that service by UPC is not sufficient compliance with the proviso to Section 138, which requires notice to be sent by registered post or by courier or by any other mode as may be prescribed - FIR quashed as essential ingredient of proper service was missing (Paras 5-8).

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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 not served in accordance with law, i.e., by registered post with acknowledgement due?

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Final Decision

The application is allowed. FIR No.75 of 2016 registered at Basmathnagar Police Station, District Hingoli, for offence under Section 138 of the Negotiable Instruments Act, 1881, is quashed and set aside.

Law Points

  • Proper service of demand notice under Section 138 of Negotiable Instruments Act
  • 1881
  • Service of notice by UPC is not sufficient
  • Requirement of registered post with AD
  • Quashing of FIR for lack of essential ingredients
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Case Details

2017 LawText (BOM) (03) 67

Criminal Application No.3865 of 2016

2017-03-15

S.S. Shinde, K.K. Sonawane

S.R. Bagal for Applicants, S.P. Deshmukh (APP) for Respondent No.1, Savita P. Kakade for Respondent No.2

Suhas @ Pappu s/o Sarjerao Kakade and Sachin s/o Vithalrao Dagdu

The State of Maharashtra and Jitendra s/o Ramesh Kamlu

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Nature of Litigation

Criminal application for quashing of FIR under Section 482 CrPC

Remedy Sought

Quashing of FIR No.75 of 2016 registered at Basmathnagar Police Station for offence under Section 138 of Negotiable Instruments Act

Filing Reason

The applicants alleged that the demand notice was not served properly as it was sent by UPC instead of registered post with AD

Issues

Whether the demand notice sent by UPC is valid service under Section 138 of NI Act? Whether the FIR can be quashed for lack of proper service of notice?

Submissions/Arguments

Applicants argued that notice was sent by UPC, not by registered post, hence not in compliance with Section 138 proviso Respondents opposed the application, but court found merit in applicants' contention

Ratio Decidendi

For an offence under Section 138 of the Negotiable Instruments Act, 1881, the demand notice must be sent by registered post with acknowledgement due or by courier or by any other mode as prescribed. Service by Under Postal Certificate (UPC) is not sufficient compliance with the proviso to Section 138, and therefore, the essential ingredient of proper service is missing, warranting quashing of the FIR.

Judgment Excerpts

The notice was sent by Under Postal Certificate (UPC) and not by registered post with acknowledgement due. The essential ingredient of proper service of demand notice is missing. Hence, the FIR is liable to be quashed.

Procedural History

The applicants filed Criminal Application No.3865 of 2016 under Section 482 CrPC before the Bombay High Court, Aurangabad Bench, seeking quashing of FIR No.75 of 2016. The court heard the matter and reserved judgment on 7th March 2017, pronouncing it on 15th March 2017.

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. Service of notice by Under Postal Certificate (UPC) instead of registered post with acknowledgement due does not meet the requirement of Section 138 of t...