2001 (8) TMI 1288 - SC - Companies Law

Whether there was breach of mandatory provision in issuing the notice as the cheque was returned on 13-1-1994 and complainant issued notice on 29-1-1994, which fell outside the period of 15 days? Held that - Appeal allowed. High Court has not considered the evidence of PW1 Gopal Krishnan and PW2 Muralidharan and has passed the impugned order holding that notice before filing the complaint under section 138 was not issued within stipulated period of fifteen days. It also appears that the court while quashing the criminal complaint on 27-11-2000, which was filed in 1994, did not call for the record of the proceedings of the Trial Court for its verification.

Summary

The Supreme Court allowed the appeal, setting aside the High Court's judgment that quashed proceedings under section 138 of the Negotiable Instruments Act. The High Court failed to consider evidence showing the notice was issued within the stipulated 15 days. The trial court is directed to proceed with the matter according to law.