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        Case ID :

        2018 (6) TMI 1369 - HC - Indian Laws

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        Statutory notice under the Negotiable Instruments Act upheld as valid where it clearly demanded the cheque amount. The statutory notice under the Negotiable Instruments Act was challenged as vague and insufficient for prosecution under Section 138 because it allegedly ...
                        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.
                          Provisions expressly mentioned in the judgment/order text.

                            Statutory notice under the Negotiable Instruments Act upheld as valid where it clearly demanded the cheque amount.

                            The statutory notice under the Negotiable Instruments Act was challenged as vague and insufficient for prosecution under Section 138 because it allegedly did not specifically demand payment of the cheque amount. On scrutiny, the court found that the notice did call upon the petitioners to pay the value of the cheque in question, and rejected the argument that it referred only to an outstanding balance. The notice was therefore treated as legally valid and sufficient, and the challenge to the prosecution failed on that ground.




                            Issues: Whether the statutory notice issued under the Negotiable Instruments Act was valid and sufficient to sustain the prosecution under Section 138.

                            Analysis: The petitioners sought quashing of the complaint on the ground that the notice was omnibus and did not specifically call upon them to pay the cheque amount. On scrutiny of the notice, the Court found that the petitioners were called upon to pay the value of the cheque in question. The contention that the notice demanded only the outstanding balance and not the cheque amount was rejected on the facts, as the notice contained a clear statement covering the cheque amount.

                            Conclusion: The statutory notice was held to be in order, and the challenge to the prosecution failed.


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                            ActsIncome Tax
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