Section 138 NI Act: Case not maintainable if Legal Notice of demand served beyond 30 days by complainant.
The Delhi High Court has quashed criminal complaint against the accused represented by Counsel Nihit Dalmia, filed under Section 138 of Negotiable Instruments Act, 1881 on founding that Legal Notice of demand was served beyond 30 days by the complainant.The Court's judgement came out in case titled as AMIT KUMAR MISHRA v/s THE STATE (GOVT OF NCT OF DELHI & ANR).
CASE BACKGROUND
The Petitioner through Counsel NIHIT DALMIA herein sought quashing of criminal proceedings against him initiated under Section 138 of Negotiable Instruments Act as the respondent/complainant gave him cash loan of ₹50,000 which he promised to pay back in eight months. However, on the due date, he only paid ₹19,500 and asked for one month's time to pay the rest of the amount. For the same, in Dec 2016, he presented a cheque of ₹30,500 to the respondent/complainant which went dishonored on 02.01.2017. In response, the respondent/complainant served legal demand notice dated 06.02.2017 via post.
The respondent/complainant contended that he immediately contacted the petitioner overcall after the dishonor of the cheque but hadn't received any satisfactory answer. On the other hand, Learned Counsel of the petitioner contended that the notice was served beyond 30 days of knowledge of the dishonor of cheque and thus no offence under Section 138 of the NI Act is made out as clause (b) of the proviso to Section 138 NI Act is not proved.
To make his case he relied on Kamlesh Kumar v. State of Bihar and Anr in which the Supreme Court held:
The observation was re-affirmed by the Supreme Court in Sivakumar v. Natrajan.
The Court thus quashed the criminal proceedings against the petitioner as it was evident that the legal notice was served beyond 30 days which defer the law established in Section 138 of Negotiable Instruments Act,
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