V. RAJA KUMARI versus P. SUBHARAMA NAIDU AND ANR.

V. RAJA KUMARI versus P. SUBHARAMA NAIDU AND ANR.

A complaint under Section 138 of the Negotiable Instruments Act should not be dismissed at the threshold solely for non-service of notice when the notice is returned with an endorsement such as ‘house locked’. The effect of such endorsement is to be considered during trial and the complainant has the burden to show if the accused managed a false postal endorsement. Once notice is dispatched to the correct address, the payee’s statutory obligation is fulfilled unless contrary is proved.

Parties
Appellant: V. Raja Kumari; Respondent No. 1: P. Subbarama Naidu; Respondent No. 2: Respondent No. 2
Jurisdiction
India
Judgment Date
02 November 2004
Procedural Posture
Criminal Appeal No. 887 of 1999 / Appeal From Andhra Pradesh High Court, Order Dated 12.11.1998 in Crl. R.c. No. 1045 of 1997
Outcome
Appeal dismissed
Legal Topics
Negotiable Instruments Act, Section 138, Service of Notice, Dishonour of Cheque, Liberal Interpretation of Notice Requirements, Burden of Proof for Notice Service
Criminal Law Negotiable Instruments Act, Section 138 Service of Notice Dishonour of Cheque Liberal Interpretation of Notice Requirements Burden of Proof for Notice Service

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Parties

V. Raja Kumari

Appellant

P. Subbarama Naidu

Respondent No. 1

Respondent No. 2

Respondent No. 2

Procedural Posture

Criminal Appeal No. 887 of 1999 / Appeal From Andhra Pradesh High Court, Order Dated 12.11.1998 in Crl. R.c. No. 1045 of 1997

Legal Issues

  1. 1 Whether complaint under Section 138 of the Negotiable Instruments Act can be dismissed at threshold for non-service of notice if notice is returned with endorsement that house is locked
  2. 2 Whether presumption of service of notice applies when notice is returned with such an endorsement

Ratio Decidendi

A complaint under Section 138 of the Negotiable Instruments Act should not be dismissed at the threshold solely for non-service of notice when the notice is returned with an endorsement such as ‘house locked’. The effect of such endorsement is to be considered during trial and the complainant has the burden to show if the accused managed a false postal endorsement. Once notice is dispatched to the correct address, the payee’s statutory obligation is fulfilled unless contrary is proved.

Court Disposition

Appeal dismissed

Orders

  • No interference with High Court order; trial to consider the effect of postal endorsement