N.D. Mani v. Rajesh Associates

NEGOTIABLE INSTRUMENTS ACT, 1881,

--Dishonour of cheque --Insufficiency of fundsNo reply to statutory notice--Whether statutory demand notice sustainable--Where complaint was filed against the accused for dishonour of cheques, however, the complainant had demanded Rs. 12 lakhs as per the statutory notice but the amount mentioned in his complaint was only Rs. 10 lakhs and he had not prosecuted the accused for dishonour of cheque of additional amount, therefore, the statutory demand notice was not vitiated and unsustainable in law.--Accused had borrowed a sum from the complainant to meet his business requirements. Accused had given two cheques to the complainant towards discharge of the said liability. When the cheques were presented before bank, the same were dishonoured due to insufficient funds. Complainant issued statutory demand notice but the accused neither replied to the statutory notice nor paid the amount of the cheques. Complainant initiated a prosecution against the accused. Accused filed petition for quashing of the proceedings on the ground that the complainant had stated in the statutory notice that the accused had borrowed a sum of Rs. 12 lakhs, however, the amount of borrowing was stated at Rs. 10 lakhs in the complaint, therefore, the statutory demand notice was vitiated and invalid. Held: In the statutory notice, the complainant had clearly given the description of the two cheques for Rs. 5 lakhs each. Of course, the complainant had added another cheque for Rs. 2 lakhs and had totally demanded Rs. 12 lakhs from the accused. However, in the complaint and in the sworn statement, the complainant had rested his case only on the two cheques for Rs. 5 lakhs each and had not prosecuted the accused for the dishonour of the third cheque for Rs. 2 lakhs. Therefore, the statutory notice could not be said to be not in consonance with the requirements of the statute. Hence, petition was dismissed.