P K SHUKLA Vs. STATE

JUDGEMENT

(1.) THE petitioner challenges an order of conviction in proceedings, inter alia, under Section 138 of the Negotiable Instruments Act, 1881. The petitioner urges two grounds : that the complaint was filed before the period of 15 days had elapsed from the date of receipt of the notice of dishonour by the petitioner ; and that there was no debt or liability that the complainant had been able to demonstrate for a charge under Section 138 of the said Act to be pressed against the petitioner.

(2.) THE complainant claimed that the cheque had been issued in the month of November, 2004 by way of a guarantee, assuring repayment of a loan obtained by another from the complainant. The cheque was dishonoured on February 15, 2006. Within the statutory period upon the complainant having knowledge of the dishonour, the notice of demand was issued on the petitioner herein on March 6, 2006 which the petitioner received on March 8, 2006. The complaint was filed on March 21, 2006, come 12 days after the date of receipt of the statutory notice and before the period covered by Clause (c) of the proviso to Section 138 of the said Act ran out.

(3.) BY an order dated July 24, 2007 the Chief Judicial Magistrate found the petitioner guilty of the offence and he was sentenced to pay a fine of Rs. 1,25,000/- and in default to suffer simple imprisonment for a year. On appeal before the Sessions Judge, it was held that the Magistrate bad correctly concluded that the cheque had been dishonoured for insufficiency of funds and that all the ingredients of the offence were found to be in place for the conviction to be sustained.