Service of notice of demand u/s 138 of the Negotiable Instruments Act is a prerequisite for filing a...

Service of notice of demand u/s 138 of the Negotiable Instruments Act is a prerequisite for filing a complaint. The objective is to provide an opportunity to the drawer to pay the cheque amount within 15 days and avoid penal consequences. Serving notice on the director of the accused company, who is the authorized signatory and drawer of the cheques, is sufficient service as per Supreme Court rulings. The defense that notice was wrongly addressed cannot aid the accused, especially when the complaints correctly name the company as an accused. The petitions lack merit and are dismissed. .....

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