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AMICUS AI
Citation Codes
Neutral Citations
1999 INSC 95
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 138 of the Act
  • Section 138 of the Negotiable Instruments Act, 1881
  • Section 9 of the General Clauses Act, 1897
  • General Clauses Act and the Limitation Act
  • Sections 138 and 142 of the Act
  • Section 12(1) and (2) of the Limitation Act, 1963
  • Section 142 of the Act
  • Code of Criminal Procedure, 1973 (2 of 1974)
  • Section 482 of the Criminal Procedure Code
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Cites
Cited by
Citation Codes
Neutral Citations
1999 INSC 95
Equivalent Citations
citation codes
Case Number
Disposition
Attorney(S)
Judges
Acts
  • Section 138 of the Act
  • Section 138 of the Negotiable Instruments Act, 1881
  • Section 9 of the General Clauses Act, 1897
  • General Clauses Act and the Limitation Act
  • Sections 138 and 142 of the Act
  • Section 12(1) and (2) of the Limitation Act, 1963
  • Section 142 of the Act
  • Code of Criminal Procedure, 1973 (2 of 1974)
  • Section 482 of the Criminal Procedure Code
Smart Summary

Factual and Procedural Background

The appellants issued two cheques dated 15-03-1995 and 16-03-1995. Both cheques were dishonoured upon presentation. Statutory notices demanding payment were served on 29-09-1995. Under Section 138(c) of the Negotiable Instruments Act, 1881 (“the Act”) the drawers had fifteen days—expiring on 14-10-1995—to make payment. No payment was tendered. The respondent therefore filed complaints on 15-11-1995 before the XI Additional Chief Metropolitan Magistrate, Bangalore.

Contending that the complaints were lodged beyond the limitation period prescribed in Section 142(b) of the Act (one month from the date the cause of action arises), the accused–appellants invoked Section 482 of the Code of Criminal Procedure, 1973 to quash the process. The High Court of Karnataka dismissed those petitions on 25-09-1997. The present appeals challenge that decision.

Legal Issues Presented

  1. Whether, for purposes of Section 142(b) of the Negotiable Instruments Act, the day on which the cause of action arises is to be excluded in computing the one-month period for filing a complaint under Section 138.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Haru Das Gupta v. State of West Bengal, (1972) 1 SCC 639 The day from which a prescribed period begins is excluded when computing limitation. Adopted as the controlling authority for excluding 15-10-1995 when calculating the one-month period.
Goldsmiths' Co. v. West Metropolitan Rly. Co., (1904) 1 KB 1 Excludes the first day in a time-period expressed as “from” a certain date. Cited illustratively to reinforce the exclusion rule.
Cartwright v. MacCormack, (1963) 1 All ER 11; (1963) 1 WLR 18 Interprets “from the date of commencement” as excluding the commencement day. Used to demonstrate consistent common-law treatment of similar wording.
Marren v. Dawson Bentley & Co. Ltd., (1961) 2 QB 135; (1961) 2 All ER 270 Exclusion of the date on which the cause of action accrues for limitation purposes. Supports the proposition that limitation begins the day after the triggering event.
Stewart v. Chapman, (1951) 2 KB 792; (1951) 2 All ER 613 Affirms the general rule of excluding the first day in a series of days. Cited as additional authority for the exclusion principle.
North, Re, ex p Hasluck, (1895) 2 QB 264 Historical English authority on excluding the first day when computing time. Referenced to show longstanding acceptance of the rule.

Court's Reasoning and Analysis

Justice M. B. Shah noted that Section 142(b) mandates filing the complaint “within one month of the date on which the cause of action arises.” Drawing on the precedent in Haru Das Gupta and the principle embodied in Section 12 of the Limitation Act, 1963 and Section 9 of the General Clauses Act, 1897, the Court reiterated the settled rule: when time is prescribed “from” a certain date, that starting date is excluded and the final day is included.

Applying this rule, the fifteen-day period under Section 138(c) expired on 14-10-1995, making 15-10-1995 the first day on which the complainant could act. Excluding 15-10-1995, the one-month limitation ran from 16-10-1995 to 15-11-1995, inclusive. Because the complaints were filed on 15-11-1995, they were held to be within the statutory period. The Court found “no reason” to deviate from the long-standing computation principle endorsed by Indian and English authorities.

Holding and Implications

DISMISSED. The Supreme Court affirmed the High Court’s refusal to quash the criminal complaints, holding that the complaints were timely under Section 142(b) of the Negotiable Instruments Act.

Implications: The decision confirms that, for offences under Section 138, the day the cause of action arises (i.e., the day immediately following the expiry of the 15-day demand period) is excluded when computing the one-month filing window. The judgment reinforces existing interpretation principles but sets no new doctrinal precedent.

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    Saketh India Ltd. And Others v. India Securities Ltd. .

    M.B Shah, J.— Leave granted.

    2. The short question involved in these appeals is whether the complaint filed by the respondent under Section 138 of the Negotiable Instruments Act, 1881 is within or beyond time as it is contended that it is not filed within one month from the date on which the cause of action arose under clause (c) of the proviso to Section 138 of the Negotiable Instruments Act (hereinafter referred to as “the Act”).

    3. In the present case, cheques dated 15-3-1995 and 16-3-1995 issued by the appellants bounced when presented for encashment as per the bank endorsement. Notices were served on the accused on 29-9-1995. As per Section 138(c) the accused were required to make payment of the said amount of money within 15 days. The accused failed to pay the said amount, hence the cause of action for filing the complaint arose from 15-10-1995. Complaints were filed on 15-11-1995. Therefore, it is contended that the complaints were filed beyond time. The accused-petitioners approached the High Court by filing petition under Section 482 of the Criminal Procedure Code for quashing and setting aside the process issued by the XIth Additional Chief Metropolitan Magistrate, Bangalore. Those petitions were rejected by the High Court by common order and judgment dated 25-9-1997. Hence, these appeals.

    4. For appreciating the contention raised by the learned counsel for the appellants, it would be necessary to reproduce Sections 138 and 142 of the Act which are as under:

    “138. Dishonour of cheque for insufficiency, etc., of funds in the account.—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 amount 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) the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;

    (b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within fifteen days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and

    (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.

    142. Cognizance of offences.—Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974),—

    (a) no court shall take cognizance of any offence punishable under Section 138 except upon a complaint, in writing, made by the payee or, as the case may be, the holder in due course of the cheque;

    (b) such complaint is made within one month of the date on which the cause of action arises under clause (c) of the proviso to Section 138;

    (c) no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under Section 138.”

    (emphasis supplied)

    5. Afore-quoted Section 138 of the Act inter alia provides that where any cheque drawn by a person is returned by the bank unpaid, such person shall be deemed to have committed an offence, however, it will apply, if the conditions mentioned in clauses (a), (b) and (c) are satisfied. Section 142 further provides that the court shall take cognizance of any offence punishable under Section 138 on a written complaint made by the payee or the holder in due course, if such complaint is filed within one month of the date on which the cause of action arises. A month is to be reckoned according to the British calendar as defined in the General Clauses Act, 1897. The question would be, whether for calculating the period of one month which is prescribed under Section 142(b), the period has to be reckoned by excluding the date on which the cause of action arose.

    6. Similar contention was considered by this Court in the case of Haru Das Gupta v. State of W.B (1972) 1 SCC 639 wherein it was held that the rule is well established that where a particular time is given from a certain date within which an act is to be done, the day on that date is to be excluded; the effect of defining the period from such a day until such a day within which an act is to be done is to exclude the first day and to include the last day. In the context of that case, the Court held that in computing the period of three months from the date of detention, which was 5-2-1971, before the expiration of which the order or decision for confirming the detention order and continuing the detention thereunder had to be made, the date of the commencement of detention, namely, February 5th has to be excluded; so done, the order of confirmation dated 5-5-1971 was made before the expiration of the period of three months from the date of detention. The Court held that there is no reason why the aforesaid rule of construction followed consistently and for so long should not be applied. For the aforesaid principle, the Court referred to the principle followed in English courts. The relevant discussion is hereunder:

    “5. These decisions show that courts have drawn a distinction between a term created within which an act may be done and a time limited for the doing of an act. The rule is well established that where a particular time is given from a certain date within which an act is to be done, the day on that date is to be excluded. (See Goldsmiths' Co. v. West Metropolitan Rly. Co. (1904) 1 KB 1, KB at p. 5.) This rule was followed in Cartwright v. MacCormack (1963) 1 All ER 11, (1963) 1 WLR 18: All ER at p. 13, where the expression ‘fifteen days from the date of commencement of the policy’ in a cover note issued by an insurance company was construed as excluding the first date and the cover note to commence at midnight of that day, and also in Marren v. Dawson Bentley & Co. Ltd. (1961) 2 QB 135, (1961) 2 All ER 270, a case for compensation for injuries received in the course of employment, where for purposes of computing the period of limitation the date of the accident, being the date of the cause of action, was excluded. (See also Stewart v. Chapman (1951) 2 KB 792, (1951) 2 All ER 613 and North, Re, ex p Hasluck (1895) 2 QB 264.) Thus, as a general rule the effect of defining a period from such a day until such a day within which an act is to be done is to exclude the first day and to include the last day. [See Halsbury's Laws of England, (3rd Edn.), Vol. 37, pp. 92 and 95.] There is no reason why the aforesaid rule of construction followed consistently and for so long should not also be applied here.”

    7. The aforesaid principle of excluding the day from which the period is to be reckoned is incorporated in Section 12(1) and (2) of the Limitation Act, 1963. Section 12(1) specifically provides that in computing the period of limitation for any suit, appeal or application, the day from which such period is to be reckoned, shall be excluded. Similar provision is made in sub-section (2) for appeal, revision or review. The same principle is also incorporated in Section 9 of the General Clauses Act, 1897 which, inter alia, provides that in any Central Act made after the commencement of the General Clauses Act, it shall be sufficient, for the purpose of excluding the first in a series of days or any other period of time, to use the word “from” and for the purpose of including the last in a series of days or any other period of time, to use the word “to”.

    8. Hence, there is no reason for not adopting the rule enunciated in the aforesaid case which is consistently followed and which is adopted in the General Clauses Act and the Limitation Act. Ordinarily in computing the time, the rule observed is to exclude the first day and to include the last. Applying the said rule, the period of one month for filing the complaint will be reckoned from the day immediately following the day on which the period of 15 days from the date of the receipt of the notice by the drawer expires. The period of 15 days in the present case expired on 14-10-1995. So cause of action for filing complaint would arise from 15-10-1995. That day (15th October) is to be excluded for counting the period of one month. Complaint is filed on 15-11-1995. The result would be that the complaint filed on 15th November is within time.

    9. Hence, the appeals are dismissed.

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    Comments

    Saketh India Ltd. And Others v. India Securities Ltd. .
    (Mar 10, 1999)