Dishonour notice timing under the Negotiable Instruments Act must be counted from bank intimation, not the cheque date.

Section 138(b) of the Negotiable Instruments Act requires the dishonour notice to be issued within fifteen days from the date the payee receives information from the bank that the cheque has been returned unpaid. On the material before the trial court, the complainant was informed of dishonour only on 17-1-1994, with intervening Pongal holidays affecting the timing. The High Court quashed the proceedings without examining that evidence or calling for the trial court record. The Supreme Court held that the notice was not shown to be beyond the statutory period on the available material, so the quashing order could not stand and the matter was remitted for trial according to law.

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Issues: Whether the notice under section 138(b) of the Negotiable Instruments Act, 1881 was issued within fifteen days of the receipt of information from the bank regarding dishonour of the cheque.

Analysis: The period prescribed in section 138(b) is to be computed from the date on which the payee receives information from the bank that the cheque has been returned unpaid. The evidence before the trial court indicated that the complainant was informed of the dishonour only on 17-1-1994, the intervening days being Pongal holidays. The High Court quashed the proceedings without considering this evidence and without calling for the trial court record for verification.

Conclusion: The notice was not shown to be beyond the statutory period on the material available, and the order quashing the proceedings could not be sustained. The appeal was allowed and the matter was remitted to the trial court to proceed according to law.

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