MIS. AJEET SEEDS LTD. versus K. GOPALA KRISHNAIAH

MIS. AJEET SEEDS LTD. versus K. GOPALA KRISHNAIAH

The High Court erred in quashing the complaint under Section 138 of the Negotiable Instruments Act on the grounds of absence of averment or proof of service of notice; presumptions under Section 114 of Evidence Act and Section 27 of General Clauses Act suffice, and service is a matter of evidence to be determined at trial, not at the stage of issuance of process.

Parties
Appellant: MIS. AJEET SEEDS LTD.; Respondent: K. GOPALA KRISHNAIAH
Jurisdiction
India
Judgment Date
16 July 2014
Procedural Posture
Criminal Appeal / Appeal Against High Court Order Quashing Criminal Complaint
Outcome
appeal allowed
Legal Topics
Dishonour of Cheque, Service of Notice, Quashing of Complaint, Presumption of Service
Criminal Law Dishonour of Cheque Service of Notice Quashing of Complaint Presumption of Service

Case Brief

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Parties

MIS. AJEET SEEDS LTD.

Appellant

K. GOPALA KRISHNAIAH

Respondent

Procedural Posture

Criminal Appeal / Appeal Against High Court Order Quashing Criminal Complaint

Legal Issues

  1. 1 Whether it is necessary to aver in the complaint under Section 138 of the Negotiable Instruments Act that notice was served on accused.
  2. 2 Whether absence of proof of service/unserved notice is a ground for quashing the complaint under Section 138 NI Act.

Ratio Decidendi

The High Court erred in quashing the complaint under Section 138 of the Negotiable Instruments Act on the grounds of absence of averment or proof of service of notice; presumptions under Section 114 of Evidence Act and Section 27 of General Clauses Act suffice, and service is a matter of evidence to be determined at trial, not at the stage of issuance of process.

Court Disposition

appeal allowed

Orders

  • The impugned judgment is set aside.
  • The complaint under Section 138 of the Negotiable Instruments Act is restored.