1. The question that arises for consideration in this case, is, when the limitation starts under S. 142(b) of the Negotiable Instruments Act to file a complaint for the offence committed under S. 138 of the said Act?
2. The facts of the case are: The respondents herein filed a complaint under S. 138 of the Negotiable Instruments Act on the ground that the cheque dated 16-7-1989 issued for Rs. 15,260/- by the petitioner was dishonoured on 24-7-89. In view of the dishonour, the respondents issued a notice to the petitioner on 20th August, 1989, which was received by the present petitioner on 24-8-1989. It was on 5-9-89, the respondents filed the petition before the Court below complaining of the offence under S. 138(c) of the Act. The Court below dismissed the complaint on the ground that it is barred by limitation.
Section 138(c) of the Act reads as follows:—
“Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the account of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both provided that nothing contained in this section shall apply unless.
(a) and (b)……
(c) ….. the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque within fifteen days of the receipt of the said notice.”
As per the above section, there is ‘15’ days time for payment of the amount due under the cheque from the date of receipt of notice regarding dishonour issued by the petitioner drawer. Therefore, the respondents have to wait for 15 days anticipating payment of the amount by the petitioner. After expiry of the said 15 days, if the petitioner did not pay the amount, cause of action starts from the 16th day onwards. The Limitation to file a complaint as prescribed under S. 142(b) of the Act is one month. The period of limitation, therefore, starts from the 16th day after receipt of notice by the petitioner.
3. In this case the notice was received by the petitioner on 24-8-1989 and thereafter he is having time to pay the amount within 15 days. The limitation starts from the date of the expiry of 15 days viz., from 9-9-1989 the 16th day. The complaint in this case was filed on 5-9-1989 which therefore is within limitation. I, accordingly, see no grounds to quash the said proceedings. The petition is dismissed.
4. It is open to the petitioner to file a petition to dispense with his presence in the Court below, and on such filing, the Court below will consider the same.
Petition dismissed.
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