Thursday, January 9, 2020

Case-7 - 
Negotiable Instruments Act, 1881, Section 138(b) Statutory Notice., 


The Complainant (PW.1) got issued a legal notice to the accused on the 5th day after receiving information (Return Memo), from the bank about dishonor of Ex.P1 cheque, through registered post with acknowledgement due. The said legal notice was returned unserved under Ex.P4 returned registered cover. 

P.W.1 deposed that the accused managed the postal authority and got return the said notice stating that the “addressee continuously absent” and the accused failed to comply with the demand. The learned counsel for the accused contended that the statutory legal notice was not served on the accused and as such, the present complaint is not maintainable.

                As per the provision u/Sec.27 of General Clauses Act in case, the registered legal notice sent to the addressee with correct address and it is returned 'continuously absent or intimated or unclaimed', the said notice is said to have been served on the addressee. The said proposition of law is settled by Apex Court and all other Hon’ble High Courts in umpteen number of cases. It is not the case of the accused that address mentioned on the cover is a wrong address and he is residing in another address. The accused did not produce any cogent evidence or any document like Aadhar card, voter ID card, Ration card etc, to show that he is residing in the address other than the address mentioned on the registered cover.

                Moreover, the Court perused the address mentioned on the acknowledgment showing the receipt of summons sent by the Court after assigning C.C. The address mentioned on the said acknowledgement and also the address mentioned on the registered legal notice cover Ex.P4 are one and the same. Hence, the Court is of the opinion that the complainant got issued legal notice to the correct address of accused and as it was returned unserved with postal endorsement that “continuously absent for 7 days”, it is deemed that registered legal notice is served on the accused as required u/Sec.138(b) of N.I. Act..


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