Supreme Court Digest of Recent Cases
(2006) 6 SCC 456

Negotiable Instruments Act, 1881

— Ss. 138 proviso (b), (c) and 142 — Deemed service of notice sent by registered post — Presumption of receipt of notice — When arises — Fraudulent avoidance of notice — Nature and proof — Held, when drawer refuses to accept the notice or when he evades service of the notice by fraudulent or unscrupulous means so that the envelope containing the notice is returned with a false endorsement such as premises locked or addressee not available, court may presume receipt of the notice by the drawer — Whether service of notice was fraudulently avoided by the drawer is a question of fact to be determined by court on the basis of evidence on record — There is no fixed rule that whenever notice could not be served due to non-availability of the addressee, court would presume service of the notice — When respondent drawee of the cheque issued notice to appellant drawer but the same was returned with the endorsement ``Party not in station, arrival not known'' whereupon respondent filed a complaint under S. 138 stating that the notice may be deemed to have been served and Magistrate passed orders under S. 204 CrPC registering a criminal case and issuing process against appellant, held, petition filed by appellant under S. 482 CrPC for quashing of the proceedings was premature as it was open to respondent to prove at trial that the endorsement was not correct and the drawer with the knowledge of the notice had deliberately avoided to receive the same — Therefore, High Court should not exercise its jurisdiction under S. 482 CrPC in such a situation — Object of S. 138 and especially its proviso (c) considered — Mischief rule of interpretation applied, (2006) 6 SCC 456-A

Negotiable Instruments Act, 1881

— Ss. 138 proviso (c) and 142 — Dishonour of cheque — Cause of action to prosecute drawer of the cheque when arises — Held, the same arises when the drawer fails to make payment within 15 days of ``receipt'' of the notice, (2006) 6 SCC 456-B

Negotiable Instruments Act, 1881

— S. 138 and proviso (c) — Object of, considered, (2006) 6 SCC 456-C



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