Cheque Dishonour and Manner of Notice: High Court Upholds Acquittal of Accused under Section 138 of Negotiable Instruments Act, 1881

Cheque Dishonour and Manner of Notice: High Court Upholds Acquittal of Accused under Section 138 of Negotiable Instruments Act, 1881 

In an interesting case, accused was acquitted by Magistrate. Offence alleged was of S.138 of NI Act, 1881. 

It was noted that existence of debt could not be established. Further, notice was not issued properly to the accused. The notice was sent through RPAD which were returned with remarks "addressee was not in station". Court had noted that accused was not properly addressed in the notice. The description of accused was different inasmuch name of father varied in records. 

The case shows how notice is to be sent in cases of cheque dishonour under S.138 of NI Act, 1881. 

Further no document evidencing loan transaction could be produced. Witnesses were not produced in whose presence loan was given. Adverse inference was drawn against the complainant. Acquittal of accused was approved by High Court.

For more details Amzad Pasha v. H.N. Lakshmana [2010] GCtR 6494 (Karnataka).