COMMERCIAL FINANCIERS Vs. THRESSIA

JUDGEMENT

(1.) Plaintiff is the appellant Plaintiff discounted cheque dated 20-8-1977 for Rs.10,000/- drawn by K. J. Mathai on Canara Bank, Kothamangalam through the 8th defendant. The cheque was presented by the plaintiff to the Canara Bank, on 12-10-1977. It was dishonoured. Defendants 1 to 7 are the legal representatives of Mathai. Additional defendants 9 to 12 are the legal representatives of the 8th defendant.

(2.) Defendants 1 to 7 contended interalia that the plaintiff did not advance Rs. 10,000/- to Mathai through the 8th defendant. All the findings by the Trial Court were in favour of the plaintiff except the one that the suit is not maintainable as no notice of dishonour under S.93 of the Negotiable Instruments Act was given to the defendants.

(3.) The question that arises for consideration is as to whether a notice of dishonour is mandatory to the drawer of a cheque in a case where the cheque was dishonoured on presentation. The Court below obviously overlooked S.98(c) of the Negotiable Instruments Act. It is in evidence that, the cheque when presented by the plaintiff was returned with the endorsement "refer to drawer". What is meant by "refer to drawer" is stated in Parthasarathy's "Cheques in Law and Practice" thus: