2018 (6) TMI 1369 - HC - Indian Laws

Cheque bounced / dishonored - discrepancy in statutory notice issued by the complainant to the accused - specification of amount and interest due - Section 482 of Cr.P.C. - Held that - After perusing the statutory notice, whereby, the petitioners herein were called upon to pay the value of the cheque-in-question and insofar as the contention of the petitioner that in the statutory notice, there is no specific amount in demanding the amount over and above, the cheque amount does not arise - the statutory notice is in order and the alleged contention raised by the petitioners does not arise on the facts and circumstances of the case, especially in view of the specific statement in the statutory notice and hence, this Criminal Original Petition is dismissed - Criminal Original Petition is dismissed.

Summary

Issues:
Petition to quash criminal proceedings under Section 138 of the Negotiable Instruments Act based on dishonored cheque.

Analysis:
1. Petitioners' Submission:
- Petitioners, including a company and its directors, seek to quash proceedings under Section 138 of the Negotiable Instruments Act related to a dishonored cheque.
- Accused company purchased products on credit but failed to settle the invoice amount within the agreed period.
- Despite part payments, a balance remained unpaid, leading to the issuance of a cheque that bounced due to insufficient funds.
- Petitioners argue that the statutory notice demanding payment did not specify the amount due under the dishonored cheque, which is essential for maintaining a complaint under Section 138 of the Act.
- Citing a Supreme Court decision, petitioners claim that an omnibus notice without specifying the dishonored cheque amount does not meet legal requirements.

2. Respondent's Argument:
- The respondent/complainant contends that the statutory notice clearly called upon the petitioners to pay the value of the dishonored cheque.
- The respondent asserts that the statutory notice was in order, as it specifically demanded payment related to the dishonored cheque, contrary to the petitioners' claim.
- The court examined the statutory notice and found it to be in compliance with legal requirements, rejecting the petitioners' argument regarding the lack of specificity in the demand.

3. Court's Decision:
- After reviewing the statutory notice and considering both parties' arguments, the court concluded that the notice adequately demanded payment related to the dishonored cheque.
- The court found no merit in the petitioners' contention that the notice was deficient in specifying the amount due under the dishonored cheque.
- Consequently, the court dismissed the Criminal Original Petition, upholding the validity of the statutory notice and rejecting the petitioners' plea to quash the proceedings under Section 138 of the Negotiable Instruments Act.

This detailed analysis of the judgment highlights the key arguments presented by both parties, the court's evaluation of the statutory notice, and the ultimate decision to dismiss the petition seeking to quash the criminal proceedings based on the dishonored cheque.