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2022 (12) TMI 558 - HC - Indian LawsDishonor of cheque u/s 138 - validity of statutory demand notice - as per the legal notice, the respondents have claimed the entire outstanding amount from the petitioners instead of raising claim of cheque amount - partial discharge of their contractual liability - HELD THAT:- It is accepted proposition of law that a notice has to be read as a whole and in the demand notice, a demand for cheque amount is required to be made. If no such demand is made, then the demand notice would not pass the test of legal requirement of section 138 NI act. If in addition to the cheque amount, the claims of interest, cost etc. are also made, then the validity of the notice would depend upon the language of the notice. If in the demand notice, the breakup of the claims i.e., cheque amount, interest, damages etc. are specifically and distinctly mentioned then the demand notice is not bad in law for the purpose under section 138 of NI Act. It was held in case of Suman Sethi V Ajay K. Churiwal and another [2000 (2) TMI 822 - SUPREME COURT] The Supreme Court in case of M/s Rahul Builders V Arihant Fertilizers & Chemicals [2007 (11) TMI 399 - SUPREME COURT] as relied upon by the petitioners considered the issue that failure on the part of complainant to serve proper notice, strictly in terms of proviso appended to section 138 of NI Act would lead to quashing of criminal proceedings. The perusal of demand notice 14.03.2013 reflects that although the respondents have also referred the dishonor of three cheques, subject matter of the present complaint but they have claimed the entire outstanding amount - The legal notice is not confined to the cheque amount. The respondents have not specifically asked for the payment of cheque amount within the stipulated period within the mandate of section 138 of NI Act. The cheque amount is not separately mentioned and identifiable from entire outstanding amount - In notice, an omnibus demand is made without specifying the cheque amount and as such notice dated 14.03.2013 failed to meet legal requirements of section 138(b) of NI Act. The demand notice accordingly is bad in law i.e., as per section 138(b) of NI Act. Impugned order and proceedings quashed.
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