V.S. Shivadas S/O V. Sreedharan vs Ramanath Shetty S/O S.H. Setty And ...

on 20 April, 2006

Karnataka High Court

V.S. Shivadas S/O V. Sreedharan vs Ramanath Shetty S/O S.H. Setty And ... on 20 April, 2006
Equivalent citations: 2006 CriLJ 3392
Author: K S Rao
Bench: K S Rao
JUDGMENT K. Sreedhar Rao, J.

Page 0363

1. The appellant-complainant prosecuted the accused for an offence Under Section 138 of the
Negotiable Instruments Act.

2. It is the case of the complainant that towards repayment of legal liabilities arising out of the
business transaction, the cheque Ex.P.1 for Rs. 30,000/- is issued. Upon presentation the cheque is
dishonored. Ex.P.2 is the endorsement regarding the dishonor issued by the bank dated 17-8-1998.
The legal notice is issued on 24-8-1998. The said notice is received on 2-9-1998 by the accused and
has given reply as per Ex.P.8. The complaint is presented on 14-9-1998.

3. The trial court after recording evidence, dismissed the complaint and acquitted the accused on the
ground that it is a case of premature presentation of the complaint. The complaint is presented
before the completion of the statutory waiting period and that there is no cause of action as on the
date of complaint Under Section 138 of the N.I. Act.

4. The Supreme Court in Narsingh Das Tapadia v. Goverdhah Das Partani and Anr. (2000) 7 SCC
183 has held that presentation of premature complaint should not entail in dismissal or in acquittal.
It is held that the complaint should be kept pending until the ripening of cause of action or the
complaint should be returned with an advise to the complainant for proper presentation after
completion of the necessary statutory waiting period. In view of the decision of the Supreme Court,
the dismissal of the complaint is bad in law. The same is set aside. The matter is remitted to the trial
court for fresh disposal in accordance with law.

Indian Kanoon - http://indiankanoon.org/doc/624246/ 1