Statutory notice under cheque dishonour law fails when it makes an omnibus demand instead of clearly demanding the cheque amount.

A statutory notice under Section 138(b) of the Negotiable Instruments Act must demand the cheque amount, though it may also mention additional claims if the cheque amount remains clearly identifiable. An omnibus demand for the entire outstanding balance, without separately and distinctly identifying the cheque amount, does not meet the mandatory notice requirement. On the facts, the notice claimed the larger outstanding dues and did not specifically demand the cheque amount of Rs. 3,50,000/-, so it was defective. Because the notice was invalid, the criminal complaint and the order issuing notice to the accused could not be sustained.

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Issues: Whether the demand notice satisfied the requirement of Section 138(b) of the Negotiable Instruments Act, 1881 when it demanded the entire outstanding balance instead of specifically and separately demanding the cheque amount, and whether the complaint and the order issuing notice under Section 251 of the Code of Criminal Procedure, 1973 were liable to be quashed.

Analysis: The statutory notice under Section 138(b) must make a demand for the amount covered by the dishonoured cheque, though it may also refer to other claims such as interest or costs if the cheque amount remains separately identifiable. A notice has to be read as a whole, but an omnibus demand that does not distinctly specify the cheque amount does not satisfy the mandatory requirement. On the facts, the notice demanded the larger outstanding balance and did not confine itself to, or clearly identify, the cheque amount of Rs. 3,50,000/-. The demand therefore failed the legal test under Section 138(b). As the notice itself was defective, the foundation for the criminal complaint and the order issuing notice to the accused could not stand.

Conclusion: The notice was invalid under Section 138(b) because it made an omnibus demand for the outstanding dues and did not specifically demand the cheque amount; the quashing challenge succeeded.

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