Delay in filing cheque bounce case can be condoned if sufficient cause is shown: SC
May 15, 2019The Supreme Court, in its judgment on 10th May 2019 held that in the cheque bounce cases, a person can file a complaint even if the prescribed period of 30 days for filing of such complaint has passed. While pronouncing the judgment, the Court has observed that the person can be condoned if he shows sufficient reason for the delay.
As per the Negotiable Instruments Act, the limitation period for filing a cheque bounce complaint is within the 30 days period after the expiry of the 15 days period of the demand notice being received by the defendant. However, in the present case, the complainant had sent a legal notice to the defendant on 31/12/2015 to which a reply wasn't received. The complainant then sent a reminder notice on 26/02/2019 to which the defendant replied denying his liability. After which a complaint was filed on 11/05/2019 before the Chief Judicial Magistrate. The CJM condoned the delay for filing the complaint after taking into consideration that the complainant was ill during the intervening period.
Thereafter, the appeal was made to Patna High Court which quashed the summons on the grounds that the complaint was not filed within the prescribed statutory period of 30 days; therefore it cannot be entertained by the court.
The appeal was then filed before the Supreme Court that observed that sufficient cause has been shown by the complainant for the delay in instituting the complaint. The Apex Court has set aside the order of Patna High Court and has held that ‘if sufficient cause is provided for delay in filing of a complaint under section 138 of NI Act, then such complaint can be accepted by the court’.