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2021 (8) TMI 438 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - validity of legal notice issued by the appellant to the respondent-Company - Section 138(b) of the N.I. Act? - HELD THAT:- A perusal of provisions particularly, clause (b) makes it clear that, the payee or the holder in due course of the cheque, as the case may be, makes a demand for payment of the said amount of money by giving a notice in writing to the drawer of the cheque within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid, he is entitled to invoke Section 138 N.I. Act. It is pertinent to mention here that the phrase contained in clause (b) of Section 138 N.I. Act, i.e. "demand for the payment of the said amount" would only mean and refer to "dishonoured cheque amount" - In the present case, in the legal notice issued by the appellant, dated 15.03.2013, the total cheque amount referred in Serial Nos. 3, 5 and 6, would be around a sum of ₹ 16,40,340/-, but, nowhere, in the notice, does the appellant raise a demand for payment of ₹ 16,40,340/- towards the dishonoured cheques referred in Serial Nos. 3, 5 and 6. A perusal of the judgment in K.R. Indira's case [2003 (10) TMI 385 - SUPREME COURT] it is clear that, if the demand for an amount covered by dishonoured cheque is conspicuously absent in the notice issued, then, the notice in question is imperfect. In the present case also, the exact amount, which the appellant claimed for towards the dishonoured cheques was not mentioned in the legal notice, and the appellant has mentioned only the serial numbers, viz., Serial Nos. 3, 5, and 6 in respect of the dishonoured cheques. Therefore, this Court is of the view that the legal notice issued by the appellant does not satisfy the ingredients contemplated under Section 138(b) of the N.I. Act. and the Court below having considered all these aspects in a proper perspective, rightly refused to entertain the complaint by holding that the legal notice issued by the appellant is not in accordance with the provision of Section 138(b) of the N.I. Act and accordingly, dismissed the complaint. Appeal dismissed.
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