TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Untimely Legal Notice Renders Section 138 Complaint Unmaintainable</h1> <h3>Kamlesh Kumar Versus State of Bihar & Another</h3> Kamlesh Kumar Versus State of Bihar & Another - 2014 AIR 660, 2013 (12) SCR 793, 2014 (2) SCC 424, 2014 (1) JT 209, 2013 (15) SCALE 202 Issues Involved:1. Maintainability of the criminal complaint under Section 138 of the Negotiable Instruments Act (N.I. Act).2. Timeliness of the complaint filed under Section 138 of the N.I. Act.Detailed Analysis:1. Maintainability of the Criminal Complaint under Section 138 of the N.I. ActThe appellant challenged the maintainability of the criminal complaint filed by respondent No.2 under Section 138 of the N.I. Act. The High Court dismissed the appellant's petition under Section 482 of the Cr.P.C., stating that the trial had already commenced and two witnesses had been examined and discharged. The High Court did not address the appellant's contentions regarding the maintainability of the complaint, leaving those issues to be decided by the trial court.2. Timeliness of the Complaint Filed under Section 138 of the N.I. ActThe appellant argued that the complaint was time-barred and not filed within the stipulated period prescribed by law. The facts of the case are as follows:- The cheque in question was presented on 25.10.2008 and was dishonored.- A legal notice was issued on 27.10.2008.- The cheque was presented again on 10.11.2008 and was dishonored again.- Another legal notice was issued on 17.12.2008.- The complaint was filed on 07.01.2009.The appellant contended that the second legal notice was not issued within the 30-day period prescribed by Section 138(b) of the N.I. Act, which rendered the complaint non-maintainable.Legal Provisions and Interpretation:Section 138 of the N.I. Act outlines the conditions under which dishonor of a cheque constitutes an offense:- The cheque must be presented within six months from the date it is drawn.- A demand for payment must be made within 30 days of receiving information about the dishonor.- The drawer must fail to make the payment within 15 days of receiving the notice.Section 142 of the N.I. Act governs the cognizance of offenses and stipulates that a complaint must be made within one month of the cause of action arising.In the case of MSR Leathers vs. S. Palaniappan & Anr. (2013) 1 SCC 177, the Supreme Court held that the payee has the right to present the cheque multiple times within its validity period and can issue a fresh notice upon each dishonor.Application to the Present Case:The cheque was presented for the second time on 10.11.2008, and the complainant issued a legal notice on 17.12.2008, which was beyond the 30-day period from the date of dishonor. The complainant admitted in the complaint that he went to the bank on 10.11.2008 and found the cheque dishonored due to insufficient funds. This admission established that the complainant received information about the dishonor on 10.11.2008, making the legal notice issued on 17.12.2008 untimely.Conclusion:The Supreme Court concluded that the complaint was not maintainable as it did not satisfy all the conditions laid down in Section 138 of the N.I. Act. The appeal was allowed, the High Court's order was set aside, and the complaint was dismissed.
TaxTMI 