Case Note & Summary
The petitioner, P. Surendra Kumar, was shown as an accused in a private complaint filed by the respondent, M/s. Varkeys Retail Ventures Pvt. Ltd., alleging an offence under Section 138 of the Negotiable Instruments Act, 1881. The respondent claimed that the petitioner had received Rs. 20,67,000/- for arranging a loan of Rs. 15,00,00,000/-, and when the loan could not be arranged, the petitioner issued four cheques of Rs. 4,00,000/- each towards repayment, with a balance of Rs. 4,67,000/- to be paid later. The cheques were dishonoured upon presentation, and the respondent issued a legal notice demanding payment. The petitioner contended that the notice was not sent to his correct address, as he was residing and carrying on business at a different address than the one mentioned in the complaint. The petitioner filed a petition under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of the proceedings in PCR No.15347/2014 pending before the XXVII Additional Chief Metropolitan Magistrate, Bengaluru. The court examined the complaint and found that the address of the petitioner mentioned in the complaint was not his correct address, and the notice was sent to that incorrect address. The court held that the complaint was not maintainable as the statutory demand notice under Section 138 of the Negotiable Instruments Act was not properly served. The court allowed the petition and quashed the entire proceedings.
Headnote
A) Criminal Law - Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Demand Notice - Proper Service - The complaint under Section 138 of the Negotiable Instruments Act, 1881 is not maintainable if the statutory demand notice is not sent to the correct address of the accused. The court held that the notice sent to an address where the accused was not residing or carrying on business cannot be considered valid service, and thus the complaint is liable to be quashed. (Paras 1-5) B) Criminal Procedure - Quashing of Proceedings - Section 482 Cr.P.C. - Abuse of Process - The High Court can exercise its inherent power under Section 482 of the Code of Criminal Procedure, 1973 to quash proceedings that are an abuse of the process of court. Where the complaint does not disclose the correct address of the accused and the notice is not served, the proceedings are liable to be quashed. (Paras 1-5)
Issue of Consideration
Whether the complaint under Section 138 of the Negotiable Instruments Act, 1881 is maintainable when the statutory demand notice was not sent to the correct address of the accused.
Final Decision
The petition is allowed. The entire proceedings in PCR No.15347/2014 pending on the file of XXVII Addl. C.M.M., Bengaluru, are quashed.
Law Points
- Section 138 Negotiable Instruments Act
- 1881
- Section 482 Code of Criminal Procedure
- 1973
- Service of demand notice
- Proper address for notice
- Quashing of criminal proceedings
