Sainaba Vs State of Kerala & Anr. (Supreme Court of India)
Cheque Bounce Under NI Act: Notice Received by Drawer’s Mother at Correct Address Presumed Served, Rules Supreme Court
Personal Receipt Is Not Indispensable
The Supreme Court has held that a statutory demand notice under Section 138 of the Negotiable Instruments Act, 1881, sent by registered post to the cheque drawer’s correct address, attracts a rebuttable presumption of valid service. That presumption cannot be defeated merely because the notice was received by the drawer’s mother rather than personally by him.
The Court restored the conviction and sentence that the Kerala High Court had set aside on this ground. It also expressly declared M.D. Thomas v. P.S. Jaleel, (2009) 14 SCC 398, to be per incuriam and not binding under Article 141, as that decision had overlooked the controlling three-Judge Bench judgment in C.C. Alavi Haji.
A ₹3 Lakh Cheque and a Notice Received by the Mother
The complainant alleged that the accused had borrowed ₹3 lakh and issued a cheque towards repayment. The cheque, drawn on Catholic Syrian Bank, was dishonoured upon presentation.
A statutory demand notice dated 31 August 2016 was sent by registered post to the accused’s correct address. His mother received it. The accused neither paid the amount nor replied to the notice.
