TMI Blog1999 (10) TMI 718X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestigation under Section 138 of the Act. But if a cheque is dishonoured drawer may expose himself to prosecution under various Sections of the Indian Penal Code which are cognizable and police could take up investigation. What was indicated in the notice was that in addition to the legal action by the appellant-bank under the Act, option was kept open for taking action against the respondents under the provisions of Indian Penal Code by informing the police. Therefore, the contention of learned counsel for the respondents has no force. For the reasons stated above we hold that notices were valid and proper and, therefore, the High Court erred in holding that there was no proper notice for payment as required under Section 138 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect to both the complaints but the High Court quashed the criminal proceedings only on the ground that there was no proper notice as required under Section 138 of the Act. We have heard the learned counsel for the parties and the short question to be decided is whether there were valid notices as required under Clause (b) of the proviso to Section 138 of the Act. We extract below the relevant portion of the notices which is same in both the notices : The bouncing of the two cheques is a most serious matter. The said act of issuance of cheques knowing fully well that the same shall not be paid statutes an offence under Section 138 of the Negotiable Instruments Act. As per the provisions of this act my client through this notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Though, no form of notice is prescribed in the above Clause (b) the requirement is that notice shall be given in writing within fifteen days of receipt of information from the bank regarding return of the cheque as unpaid and in the notice a demand for payment of the amount of the cheque has to be made. The object of notice is to give a chance to the drawer of the cheque to rectify his omission and also to protect honest drawer. Service of notice of demand in Clause (b) of the proviso to Section 138 is a condition precedent for filing a complaint under Section 138 of the Act. In the present appeals there is no dispute that notices were in writing and these were sent within fifteen days of receipt of information by the appellant- bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was to start police investigation and not to file complaint under Section 138 of the Act. Under Section 142 of the Act, court can take cognizance of an offence punishable under Section 138 only on a complaint in writing made by the payee. Therefore, the police could not have started investigation under Section 138 of the Act. But if a cheque is dishonoured drawer may expose himself to prosecution under various Sections of the Indian Penal Code which are cognizable and police could take up investigation. What was indicated in the notice was that in addition to the legal action by the appellant-bank under the Act, option was kept open for taking action against the respondents under the provisions of Indian Penal Code by informing the poli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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