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        Case ID :

        2006 (9) TMI 617 - HC - Indian Laws

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        Demand notice service date is essential under Section 138 NI Act; presumption under Section 27 GCA did not apply to private courier. For an offence under Section 138 of the Negotiable Instruments Act, the complaint must disclose the material dates completing the statutory sequence, ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Demand notice service date is essential under Section 138 NI Act; presumption under Section 27 GCA did not apply to private courier.

                            For an offence under Section 138 of the Negotiable Instruments Act, the complaint must disclose the material dates completing the statutory sequence, including the date of service of the demand notice, because the payment period and cause of action depend on that service. As the complaint, Section 200 statement and accompanying documents did not state any date of service, the offence was not made out and the summoning order could not stand. The presumption of service under Section 27 of the General Clauses Act was also unavailable because it applies to service by registered post and does not extend to a demand notice sent through private courier.




                            Issues: Whether, in the absence of the date of service of the demand notice, the ingredients of Section 138 of the Negotiable Instruments Act, 1881 were made out so as to sustain the summoning order, and whether service of notice sent through private courier could be presumed under Section 27 of the General Clauses Act, 1897.

                            Analysis: For an offence under Section 138 of the Negotiable Instruments Act, 1881, the complaint must disclose the material dates necessary to complete the statutory sequence, including the date of service of notice on the drawer, because the fifteen-day period for payment and the accrual of cause of action depend upon that service. On the facts pleaded, neither the complaint nor the statement under Section 200 of the Code of Criminal Procedure, 1973 nor the accompanying documents disclosed any date of service of the demand notice. In such circumstances, the offence could not be treated as complete. The presumption under Section 27 of the General Clauses Act, 1897 was also held inapplicable because that provision contemplates service by post by registered post and does not extend to notice sent through a private courier.

                            Conclusion: The ingredients of the offence were not established, the presumption of service was unavailable, and the summoning order could not stand.


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