LAWS(APH)-1995-1-4

B MOHAN KRISHNA Vs. UNION OF INDIA

Decided On January 27, 1995
B.MOHAN KRISHNA Appellant
V/S
UNION OF INDIA Respondents

JUDGEMENT

(1.) The provisions of Chapter XVII of the Negotiable Instruments Act, 1881 (for short "the Act"), comprising sections 138 to 142, concerning penalties in cases of dishonour of certain cheques for insufficiency of funds in the accounts, inserted by section 4 of the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 (Act 66 of 1988) are under challenge in this batch of writ petitions.

(2.) The Statement of Objects and Reasons of Act 66 of 1988 says :

(3.) Section 139 of the Act incorporates a rule of presumption to the effect that until the contrary is proved, the holder of a cheque received the cheque of the nature referred to in section 138 of the discharge in whole or in part of any debt or liability. Section 140 lays down that when a person is prosecuted for an offence under section 138, he is not entitled to plead in his defence that he had no reason to believe when he issued the cheque that it may be dishonoured on presentment for the reasons stated in section 138. Section 141 concerns offences by companies. Section 142 deals with cognizance of offences punishable under section 138. To take cognizance of an offence under section 138, the necessary pre-condition is a written complaint by the payee or the holder of the cheque in due course and the complaint must be within one month from the date of failure on the part of the drawer to make payment to the payee or the holder in due course from the date of receipt of the notice. No court inferior to that of a Metropolitan Magistrate or a Judicial First Class Magistrate is empowered to try an offence punishable under section 138.