Failure to Send Notice Leads to Dismissal of Criminal Petition in Cheque Dishonour Case.


11 December 2024 Acquittal >> Criminal Law   |   Negotiable Instruments Act >> Criminal Law   |   Cheque Bounce >> Debt Recovery  

The petition of Balasingh Samuel v/s M/s. Franch Herbs Technologies Ltd., & Another., sought permission to file an appeal against a judgment of acquittal dated 09.05.2019. The petitioner argued that the first respondent, a company, issued five cheques which were dishonoured due to insufficient funds. Despite a statutory notice, the respondents failed to make the payment.

 

 

The trial court noted that while the cheques were issued by the first respondent company, the statutory notice required under Section 138 of the Negotiable Instruments Act, 1881, had not been sent to the company. The court emphasized that for a complaint under Section 138 to be valid, the non-payment must follow the demand for payment as prescribed in Section 138(b). Since no notice was issued to the company, the complaint against it could not stand, and consequently, the second respondent, who could only be held vicariously liable if the first respondent was liable, could not be prosecuted. As a result, the Criminal Original Petition was dismissed on merits.


Section 138, Negotiable Instruments Act - 1881  

Negotiable Instruments Act, 1881