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2013 (9) TMI 246 - SC - Companies LawCalculation of Period of one month in Negotiable Instrument Act - Exclusion of first day - Whether for calculating the period of one month which was prescribed under Section 142(b), the period had to be reckoned by excluding the date on which the cause of action arose - Held that:- While computing the period of one month as provided under Section 142(b) of the N.I. Act, the first day on which the cause of action had arisen had to be excluded - It was not possible to hold that the word ‘of’ occurring in Section 138(c) and 142(b) of the N.I. Act was to be interpreted differently as against the word ‘from’ occurring in Section 138(a) of the N.I. Act; and that for the purposes of Section 142(b), which prescribes that the complaint was to be filed within 30 days of the date on which the cause of action arises, the starting day on which the cause of action arises should be included for computing the period of 30 days. Days included or excluded — When a period of time running from a given day or even to another day or event was prescribed by law or fixed as contract, and the question arises whether the computation was to be made inclusively or exclusively of the first-mentioned or of the lastmentioned day, regard must be had to the context and to the purposes for which the computation had to be made - Where there was room for doubt, the enactment or instrument ought to be so construed as to effectuate and not to defeat the intention of Parliament or of the parties, as the case may be - Expressions such as ‘from such a day’ or ‘until such a day’ are equivocal, since they do not make it clear whether the inclusion or the exclusion of the day named may be intended - As a general rule, however, the effect of defining a period in such a manner was to exclude the first day and to include the last day. Saketh India Ltd. & Ors. v. India Securities Ltd. [1999 (3) TMI 591 - SUPREME COURT] lays down the correct proposition of law - the purpose of calculating the period of one month, which was prescribed u/s 142(b) of the N.I. Act, the period had to be reckoned by excluding the date on which the cause of action arose - SIL Import USA does not lay down the correct law - Needless to say that any decision of this Court which takes a view contrary to the view taken in Saketh by this Court, do not lay down the correct law on the question involved in this reference.
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