Service of notice of demand u/s 138 of the Negotiable ...

Notice u/s 138 NI Act is prerequisite for complaint. Allows drawer 15 days to pay & avoid penalty. Serving notice on director who signed cheque is valid service.

Case Laws Indian Laws

July 6, 2024

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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Service of notice of demand u/s 138 of the Negotiable ...

Notice u/s 138 NI Act is prerequisite for complaint. Allows drawer 15 days to pay & avoid penalty. Serving notice on director who signed cheque is valid service.

Case Laws Indian Laws

July 6, 2024

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