Cheque Dishonour Notice Service Presumption Sustained Complaint Held Maintainable After Statutory Fifteen-Day Period

A complaint under the cheque dishonour law was held maintainable where the demand notice had been sent by registered post and service was presumed under the General Clauses Act and the Evidence Act unless rebutted. The Court read Sections 138 and 142 of the Negotiable Instruments Act together and held that cognizance arises only after the drawer fails to pay within fifteen days of receipt of notice; on the facts, the notice was deemed served, the complaint filed after expiry of that period was not premature, and the proceedings were not liable to be quashed.

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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 was premature for want of proof of service of the demand notice and whether the ensuing cognizance and proceedings were liable to be quashed.

Analysis: The complaint was challenged on the ground that the demand notice allegedly sent by registered post had not been shown to have been served and that the complaint had been filed before expiry of the statutory period. The Court read Sections 138 and 142 of the Negotiable Instruments Act, 1881 together and held that the offence is complete on dishonour, but cognizance cannot be taken unless the complainant has a cause of action after the drawer fails to pay within fifteen days of receipt of notice. Applying the presumption of service under Section 27 of the General Clauses Act, 1897 and Section 114 of the Indian Evidence Act, 1872, the Court found that notice sent by registered post was deemed served in the ordinary course, particularly when the petitioner did not dispute receipt and had participated in the proceedings while exploring settlement. The Court also held that after the expiry of fifteen days from the deemed service date, the complaint filed on the following day was maintainable.

Conclusion: The complaint was not premature, the cognizance was valid, and the proceedings were not liable to be quashed.

Final Conclusion: The petition challenging the complaint and subsequent proceedings under the cheque dishonour law failed, and the proceedings before the trial court were sustained.

Ratio Decidendi: In a prosecution under Section 138 of the Negotiable Instruments Act, 1881, a demand notice sent by registered post attracts the statutory presumption of service unless rebutted, and a complaint filed after expiry of the statutory fifteen-day period from such deemed service is maintainable.

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