Premature Section 138 complaint fails where prosecution is filed before expiry of the statutory 15-day payment period.

A prosecution under Section 138 of the Negotiable Instruments Act can begin only after the drawer fails to pay within 15 days of receipt or deemed receipt of the statutory notice. Because the complaint was filed before expiry of that statutory period, the cause of action had not arisen and the complaint was premature. The criminal proceedings were therefore liable to be quashed.

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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 was premature for having been filed before expiry of the statutory 15-day period after notice.

Analysis: The statutory scheme requires the payee to issue notice demanding payment within the prescribed time and permits prosecution only if the drawer fails to pay within 15 days of receipt of that notice. The cause of action for filing the complaint arises only after expiry of that period. On the facts, the notice was issued and the complaint was filed before the expiry of 15 clear days from receipt or deemed receipt of notice. The complaint was therefore instituted before the cause of action had arisen.

Conclusion: The complaint was premature and the proceedings were liable to be quashed in favour of the petitioner.

Final Conclusion: The statutory precondition for launching prosecution under Section 138 was not satisfied, so the criminal proceedings could not be sustained.

Ratio Decidendi: A prosecution under Section 138 of the Negotiable Instruments Act, 1881 can be commenced only after the drawer fails to make payment within 15 days of receipt or deemed receipt of the statutory notice, and a complaint filed before that point is premature.

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