Statutory notice service is not defeated by minor initial mismatch when registered post reaches the drawer's correct address.

When a statutory demand notice under Section 138 of the Negotiable Instruments Act is sent by registered post to the drawer's correct address, a minor mismatch in the addressee's initials does not defeat service. The presumption of service under Section 27 of the General Clauses Act applies unless rebutted, and the drawer's failure to displace the presumptions under Sections 118 and 139, or to show any valid basis for stop-payment instructions, leaves the notice requirement satisfied. The cause of action therefore arises, and liability on the dishonoured cheque remains enforceable.

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Issues: Whether the cause of action to prosecute under Section 138 of the Negotiable Instruments Act, 1881 failed to arise because the statutory notice sent to the drawer was returned with the endorsement that the addressee's initial differed.

Analysis: The cheque had been issued in discharge of a legal liability and was returned with the endorsement "payment stopped by the drawer". The notice was dispatched by registered post to the accused's correct residential address, and the only defect was a minor error in the initial of the addressee. The postal endorsement did not show incorrect address, but indicated that the addressee's initial differed. In such circumstances, the presumption of service under Section 27 of the General Clauses Act, 1897, applied. The drawer could not avoid service by pointing to a slight mismatch in initials when the address was otherwise correct. The accused also failed to rebut the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881, or to prove any valid reason for the stop-payment instruction.

Conclusion: The notice requirement under Section 138 was held to be duly satisfied, the cause of action had arisen, and the challenge to maintainability failed.

Final Conclusion: The criminal petition was rejected and the conviction and liability arising from the dishonoured cheque were sustained, with time granted only for deposit of the balance compensation amount.

Ratio Decidendi: When a statutory notice is sent by registered post to the correct address of the drawer, a minor defect in the addressee's initials does not defeat service; the presumption of service under Section 27 of the General Clauses Act, 1897, operates unless rebutted by the drawer.

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