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        2024 (3) TMI 174 - HC - Indian Laws

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        Presumption of service for statutory demand notice sent to the correct address defeats quashing for lack of postal proof. Where a statutory demand notice under Section 138 of the Negotiable Instruments Act is sent by registered post to the drawer's correct address, service ...
                        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.

                            Presumption of service for statutory demand notice sent to the correct address defeats quashing for lack of postal proof.

                            Where a statutory demand notice under Section 138 of the Negotiable Instruments Act is sent by registered post to the drawer's correct address, service may be presumed under Section 27 of the General Clauses Act and Section 114 of the Evidence Act unless rebutted by contrary proof. The absence of a postal track report or acknowledgment due card, by itself, does not establish non-service or invalidate cognizance and the summoning order. The complaint alleging cheque issuance, dishonour for insufficiency of funds, and dispatch of notice was therefore not liable to be quashed on the ground of want of proof of actual service.




                            Issues: Whether non-filing of the postal track report or acknowledgment due card vitiated the complaint under Section 138 of the Negotiable Instruments Act, 1881 when the demand notice was sent to the correct address of the accused.

                            Analysis: The complaint disclosed issuance of cheque, dishonour for insufficiency of funds, and dispatch of demand notice to the correct address of the accused. In the absence of return of the envelope and in view of the legal presumptions arising under Section 114 of the Evidence Act and Section 27 of the General Clauses Act, service of notice could be presumed unless the contrary was shown. The absence of a track report or acknowledgment due card, by itself, did not establish non-service so as to invalidate cognizance or the summoning order.

                            Conclusion: The plea that the proceeding was liable to be quashed for want of proof of actual service of notice was rejected.

                            Final Conclusion: The complaint and the summoning order were upheld, and the quashing petition failed.

                            Ratio Decidendi: Where a statutory demand notice under Section 138 of the Negotiable Instruments Act, 1881 is sent by registered post to the correct address of the drawer, service is presumed under Section 27 of the General Clauses Act, 1897 read with Section 114 of the Indian Evidence Act, 1872, unless the contrary is proved.


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                            ActsIncome Tax
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