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The HC set aside the trial court's acquittal of the respondent under Section 138 of the NI Act for dishonour of cheque due to insufficient funds. The appellant's demand notice was duly issued within the statutory limitation period as prescribed under proviso (b) of Section 138, evidenced by receipt dated 2.11.1993, and no credible evidence was presented by the respondent to dispute the authenticity or service of the notice. The trial court erred in calculating the limitation from the date of receipt of the demand notice instead of from the date of dishonour information. Consequently, the respondent was convicted for the offence under Section 138 NI Act, and the appeal was allowed.
The HC set aside the trial court's acquittal of the respondent under Section 138 of the NI Act for dishonour of cheque due to insufficient funds. The appellant's demand notice was duly issued within the statutory limitation period as prescribed under proviso (b) of Section 138, evidenced by receipt dated 2.11.1993, and no credible evidence was presented by the respondent to dispute the authenticity or service of the notice. The trial court erred in calculating the limitation from the date of receipt of the demand notice instead of from the date of dishonour information. Consequently, the respondent was convicted for the offence under Section 138 NI Act, and the appeal was allowed.
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