Is notice for cheque bounce admissible if sent after 35 days?


I issued a Post dated cheque which got bounced due to insufficient funds and the notice for the same was sent to a wrong address which I did not receive. I received the notice after 35 days at my correct address via registered post.

 

My question is that is the notice received by me after 35 days of the cheque being bounced admissible in court under Section 138 NI?

 

The court has accepted the same whereas after 30 days it should not be admissible.

 

Kindly advise.

 

Answer

 

Under Section 138 of the Negotiable Instruments Act, the notice has to be dispatched within 30 days of the receipt of notice of dishonour from the bank. With the receipt of notice, the failure to pay has to be counted from 15 days of receipt of notice.

 

The receipt of the notice by the defaulter has no correlation with the case. The language as interpreted states that the notice has to be "sent" within 30 days of dishonour of the cheque and the payment should be made within 15 days of the receipt of notice. In case the address where the notice is sent is incorrect and the notice is not recevied, that is a triable issue and the court cannot dismiss the case at the outset on the ground of non receipt of the notice.

 

Applying the above clarification to the circumstances mentioned by you, the court is correct in allowing the complaint to proceed if the notice was dispatched within 30 days from the receipt of notice of dishonour from the bank.

 


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