Arumugam Vs Ananda (Karnataka High Court)
Summary: The Karnataka High Court considered a criminal revision challenging the conviction of the petitioner-accused under Section 138 of the Negotiable Instruments Act, 1881. The respondent-complainant alleged that the petitioner had borrowed a hand loan of Rs.1,00,000 and issued a cheque towards repayment. The cheque was dishonoured for “funds insufficient”. A demand notice dated 30.12.2015 was served on the accused on 01.01.2016, but the complaint under Section 138 was presented on 13.01.2016, before expiry of the statutory period of 15 days available to the drawer for making payment.
The trial Court convicted the accused and imposed a fine of Rs.1,75,000, with six months’ simple imprisonment in default. The Sessions Court dismissed the accused’s appeal and confirmed the conviction. In revision, the accused contended that since the statutory notice was received on 01.01.2016 and the complaint was filed on 13.01.2016, the complaint had been instituted before accrual of the cause of action. The complainant admitted that the complaint was premature and sought liberty to institute a fresh complaint with condonation of delay.
The High Court examined Sections 138(c) and 142(b) of the Negotiable Instruments Act and observed that the offence under Section 138 arises only when the drawer fails to make payment within 15 days of receipt of the statutory notice. Consequently, a complaint can be instituted only after accrual of the cause of action.
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