Limitation under the Negotiable Instruments Act barred a cheque dishonour complaint and made cognizance unsustainable.

A complaint under Section 138 of the Negotiable Instruments Act was held time-barred because it was filed after the one-month period prescribed by Section 142(b) from accrual of the cause of action. The Court rejected the attempt to shift limitation to the later date of knowledge of postal delivery, stating that such computation would defeat the statutory scheme. As no application for condonation of delay was filed, the order taking cognizance could not be sustained and the refusal to discharge was unsustainable.

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Issues: Whether the complaint under Section 138 of the Negotiable Instruments Act, 1881 was barred by limitation and whether the orders taking cognizance and refusing discharge were liable to be set aside.

Analysis: The complaint was filed on 26.03.2013 on the basis of a demand notice issued on 03.01.2013 and received on 07.01.2013. The Court applied the statutory scheme under Section 142(b) of the Negotiable Instruments Act, 1881, under which the complaint must be made within one month of the date on which the cause of action arises under Section 138. On the admitted dates, the statutory period expired before the complaint was instituted, and no application for condonation of delay was filed. The Court rejected the attempt to compute limitation from the later date of knowledge of postal delivery, holding that such an approach would defeat the statutory scheme and that the complaint was time-barred even on the alternative calculations discussed.

Conclusion: The complaint was barred by limitation, and the orders taking cognizance and rejecting discharge were unsustainable. The finding is in favour of the petitioner.

Ratio Decidendi: A complaint under Section 138 of the Negotiable Instruments Act, 1881 must be filed within the period prescribed by Section 142(b) from the accrual of cause of action, and where the complaint is instituted beyond that period without condonation, cognizance cannot be sustained.

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