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.

View Source

← Previous Next →

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

You may also like:

Legal notice for dishonor of cheque due to insufficient funds was sent on 19.12.2018. Presuming service within 30 days, it should be deemed served by 17.1.2019. However,...

Dishonor of Cheque - pre-mature complaint - time limit for filing of complaint from the date of cause of action - The complaint under Section 138 of Negotiable...

Dishonor of cheque - payment of interim compensation - direction to deposit 15% amount - Insofar as the present facts are concerned, the period of 15 days from the date...

Section 27 of the General Clauses Act indicates expression “served”, “give” or “sent” while section 138 (c) of the N.I. Act indicates the giving of notice and accrual of...

Dishonor of Cheque - interpretation clause ‘c’ of the proviso to section 138 of N.I. Act - Admittedly in the case in hand, the required notice was issued on 01.03.2016...

Dishonor of Cheque - Different cheques, may be issued for discharging the liability, arising out of one and same transaction, are separate entities and dishonour of each...

Benefit of reduced penalty of 15% u/s 28(5) - Delay in payment of penalty due to Public Holiday - The appellant voluntarily paid the differential BCD and interest upon...

Validity of Notice issued u/s 143(2) - Defective return - Removal of defect beyond 15 days u/s 139(9) - AO should have treated the return as non-est when the assessee...

Dishonor of Cheque - insufficiency of funds - acquittal of the accused - The proviso to Section 138 of the Act affords clear indication that ‘giving notice’ in the...

Dishonor of cheque due to account being frozen/blocked by order of IT department does not attract liability u/s 138 of Negotiable Instruments Act. For an offense u/s...

Dishonour of cheque case instituted within 30 days from legal notice date satisfies condition precedent for cognizance u/s 138 and 142(b) of NI Act. Complaint within...

Dishonor of cheque case - vicarious liability of directors u/s 138 read with Sections 141 and 142 of Negotiable Instruments Act. Court held specific, unambiguous...

Condonation of delay of 17 days in filing of appeal - last two days being public holidays - Power of Jurisdiction of NCLAT to condone delay - Applicability of provisions...

Penalty - instead of issuing the show cause notice for recovery of the 15% amount of penalty, the department had proceeded against the appellant for confirmation of the...

Dishonor of Cheque - offence u/s 138 of NI Act - In view of the Section 27 of the General Clauses Act it is not necessary to mention in the complaint that service of...

Quick Updates: