PAWAN KUMAR RALLIversusMANINDER SINGH NARULA
- Citation
- 2014 INSC 537
- Decided
- 11 August 2014
- Disposal
- Appeal(s) allowed
Holding
The High Court erred in quashing the complaint; the handwritten notice is a valid notice under s.138, and the court must have considered condonation of delay under s.142(b) and remanded the case, not dismissed it.
Summary
The appellant, having given a loan of Rs.60 lakh, received three cheques from the respondent which were dishonoured by stop‑payment. He issued a handwritten notice on 27 April 2012 and a formal legal notice on 24 May 2012 demanding payment, and subsequently filed a criminal complaint under Sections 138, 141, 142 of the Negotiable Instruments Act and Section 420 IPC. The High Court quashed the complaint, holding that the complaint was filed beyond the one‑month limitation period calculated from the handwritten notice. The Supreme Court held that the handwritten notice satisfied the statutory requirement of a written notice under Section 138(b) and that the High Court should have exercised the discretion under the proviso to Section 142(b) to consider condonation of the 25‑day delay, rather than quash the proceedings. Accordingly, the Supreme Court set aside the High Court’s order, restored the criminal proceedings, and allowed the appellant to seek condonation of delay before the trial court. The appeal was allowed.
Issues considered
- Whether the handwritten note dated 27 April 2012 constitutes a valid notice under Section 138(b) of the Negotiable Instruments Act, or only the formal legal notice dated 24 May 2012 does.
- Whether any delay in filing the complaint can be condoned under the proviso to Section 142(b) of the Act.
- Whether the High Court was correct in quashing the criminal proceedings on the ground of limitation, or should have remitted the matter to the trial court for deciding the limitation issue.
Legislation cited
- Code of Criminal Procedure, 1973s. 245, s. 410, s. 473, s. 482, s. 91
- Indian Penal Code, 1860s. 420
- Negotiable Instruments Act, 1881s. 138, s. 142(b)
Subjects
Judgment
(2014] 7 S.C.R. 1047
PAWAN KUMAR RALLI A
v.
MANINDER SINGH NARULA .
(Criminal Appeal No. 1684 of 2014)
AUGUST 11, 2014
B
[RANJANA PRAKASH DESAI AND N.V. RAMANA, JJ.]
NEGOTIABLE INSTRUMENTS ACT, 1881:
s. 138 (b) - 'Notice' - Court's power to condone delay in c
filing a complaint uls 138 - Dishonour of cheque ..:.. Hand
written note sent by complainant to accused calling upon him
to make the payment - Subsequently a formal legal notice
issued by complainant - Held: The handwritten note was
issued within the mandatory period of thirty days of dishonour 0
of cheques and fulfilled the mandatory requirements under
clause (b) of proviso to s. 138 - Therefore, High Court
committed no error in considering the handwritten note as
'notice' u/s 138.
s.142(b}, proviso r/w s.138 - Condonation of delay in E
filing complaint u/s 138 - Held: Respondent did. not raise th£!
issue of limitation before that court and the question of the
said court exercising the discretion to condone the delay did
not arise at all - Respondent has not suffered any prejudice
by reason of 25 days delay ·- Therefore, appellant should F
not have been deprived of the remedy provided by Legislature
- When the issue of limitation came up for the first time
before High Court, it ought to have dealt with the same on
merits as per proviso to· s.142(b), which confers jurisdiction
upon court to condone the delay - High Court committed an G
error in quashing the complaint -·It ought to have remanded
the matter to trial court for deciding the issue of limitation ...:.
Accordingly, in order to meet the ends of justice, in exercise
of discretion under Art. 142 of the Constitutio17, impugned
1047 H
1048 SUPREME COURT REPORTS [2014] 7 S.C.R.
A judgment of High Court is set aside - Criminal proceedings
before trial court are restored - Appellant is permitted to file
before trial court an application for condonation of delay,
which shall be considered on its own merits - Constitution of
India, 1950 - Art. 142.
B
s.142(b), proviso (as inserted by Amendment Act, 2002)
- Legislative intent of - Explained.
In a case of dishonour of cheques dated 25.4.2012,
the appellant issued a hand written notice dated 27.4.2012
C to the respondent calling upon him to make the payment.
Subsequently, a formal legal notice dated 24.5.2012 was
issued uls 1381142 of the Negotiable Instruments Act,
1881. The respondent denied the claim put forth in the
said notice. Consequently, the appellant filed a complaint
D against the respondent for offences ulss 138, 141 and
142 of the Negotiable Instruments Act, 1881 and s. 420
IPC. The trial court took cognizance and issued
summons to the respondent, who contested the case
and during the 'pendency of the proceedings filed a
E petition uls 482 Cr.P.C. before the High Court seeking to
quash the complaint on the ground that it was filed with
25 days delay. The High Court quashed the criminal
proceedings against the respondent holding that the
complaint was not filed within the period of limitation from
F the notice dated 27.4.2012.
In the instant appeal filed by the complainant, the
questions for consideration of the Court were as follows:
•
(a) Whether the handwritten note sent by the
G appellant on 27.4.2012 to the respondent
could be treated as 'notice' or the notice
issued by the advocate on 24.5.2012 could
only be treated as 'notice' within the meaning
of s. 138 of the Act?
H
PAWAN KUMAR RALLI v. MANINDER SINGH 1049
NARULA
(b) If there was any delay in filing the complaint, A
whether such delay could have been
condoned by the High Court in accordance
with the provisions of the Act?
(c) Whether the High Court was right in quashing 8
the criminal proceedings on the ground of
limitation or instead of quashing the criminal
proceedings it ought to have remitted the
matter back to the trial court for deciding the
issue of limitation?
c
Allowing the appeal, the Court
HELD: 1.1. The handwritten note dated 27 .4. 2012
was issued within the mandatory period of thirty days of
dishonour of cheques and it fulfilled the mandatory D
requirements under clause (b) of proviso to s.138 of the
Negotiable Instruments Act, 1881. Therefore, the High
Court has committed no error in considering the
handwritten note dated 27.4.2012 as 'notice' uls 138 of
the Act. [para 19] [1060-G-H; 1061-A] E
Central Bank of India & Anr. Vs. Saxons Farms & Ors.
1999 Suppl. (3) SCR 534 =(~999) 8 sec 221 - relied on.
2.1. The respondent contested the matter before. the
trial court and also filed an application uls 91, Cr.P .C. F
warranting the appellant to produce various documents.
He also moved an application uls 410, Cr.P.C. seeking
transfer of the complaint to a different court. It is
noteworthy that all through out the pendency of
proceedings before the trial court, the respondent did not G
raise the issue of 'limitation'. The issue was raised for the
first time before the High Court in s.482, Cr.P.C.
proceedings. However, when the issue of limitation came
up for the first time before the High Court, it ought to have
dealt with the same on merits as per proviso to s.142(b) H
1050 . SUPREME COURT REPORTS [2014] 7 S.C.R.
A of the Act. The said prQviso was inserted by the
Negotiable Instruments (Amendment and Miscellaneous.
Provisions) Act, 2002 and the legislative intent was, no
doubt, in order to overcome the technicality of limitation
period. The Statement of Objects and Reasons appended
B to the Amendment Bill, 2002 suggests that the
introduction of this proviso was to provide discretion to
the court to take cognizance of offence even after expiry
of the period of Umitation. Only with a view to obviate the
difficulties on the part of the Complainant, Parliament
c inserted the proviso to clause (b) of s.142 of the Act in
the year 2002. It confers a jurisdiction upon the Court to
condone the delay. [para17 and 20] [1059-H; 1060-A-B;
1061-B-E]
MSR Lea.thers vs. S. Palaniappan [2012] 9 SCR 165 =
D (2013) 1 SCC 177; Subodh S. Salaskar vs. Jayprakash M.
Shah [2008] 11 SCR 681 = (2008) 13 SCC 689 - relied on.
2.2. lt is no doubt true that at the time of filing the
complaint, the Magistrate has to take cognizance of the
E complaint when it is within limitation and in case of delay,
the complaint has to come up with the application
seeking condonation of delay. But, the peculiar fact of
the instant case is that in the complaint, the complainant
had only averred that he has sent the legal notice dated
F 24.5. 2012 btlt did not mention about the handwritten note
dated 27.4.2012. Basing on the said averment, the trial
judge was satisfied that the complaint was within the
prescribed period of limitation. Therefore, in the instant
case, raising the plea of limitation and court exercising
G the discretion to condone the delay did not arise at all.
[para 21] [1061-F-G]
2.3. In the peculiar facts and circumstances of the
case, while keeping in mind the legislative intent and the
specific plea of the appellant raised in the grounds for the
H Special Leave Petitiori that he should have been allowed
PAWAN KUMAR RALLI v. MANINDER SINGH 1051
NARULA
to move an application for condonation of delay before A
the trial court as the respondent has not suffered any
prejudice by reason of 25 days delay, the appellant·
should not have been deprived of the remedy provided
by the Legislature. Therefore, the High Court has
1 committed an error by not considering the issue of B
limitation on merits. [para 22] [1061-H; 1062-A-C]
3.1. This Court is, therefore, of the considered
opinion that the High Court was not right in quashing the
complaint merely on the ground that it was barred by C
limitation. On the other hand, the High Court ought to
have remanded the matter to the trial court for deciding
the issue of limitation. [para 23] [1062-D-E]
3.2. In order to meet the ends of justice, this Court
exercises its discretion under Art. 142 of the Constitution D
and sets aside the impugned judgment of the High Court.
The criinfoal proceedings before the trial court are
restored. The appellant is permitted to file an application
for condonation of delay before the trial court and if such
an application is filed, the same shall be considered on E
its own merits. [p(lra 25] [1062-G-H; 1063-A]
Rakesh Kumar Jain Vs. State (Through CBI) 2000 (2)
=
Suppl. SCR 275 (2000) 7 SCC 656;Ramesh Chand
Sharma Vs. Udham Singh Kamal & Ors. 1999(3) Suppl.
SCR 613 = (1999) 8 sec 304 - cited.
F
Case Law Reference:
2000 (2) Suppl. SCR 275 relied on para 9
1999 (3) Suppl. SCR534 relied on para 11 G
1999 (3) Suppl. SCR 613 cited para 12
2012 (9) SCR 165 relied on para 20
2008 (11) SCR 681 relied on para 20 H
1052 SUPREME COURT REPORTS [2014] 7 $.C.R.
A CRIMINAL APPELLATE JURISDICTION: Criminal Appeal
No. 1684 of 2014.
From the Judgment and Order dated 15.01.2013 in
CRLMC No. 2961 of 2012 of the High Court of Delhi at New
B Delhi.
Hzefa Ahmadi, (AC), Rohan Sharma, Azal Khan. Geetanjali
Sharma, T.V. Geore for the Appellant.
Vipin Kumar Jai, Manish Miglan, Vipul Jai for the
c Respondent.
The Judgment of the Court was delivered by
N.V. RAMANA, J. 1. Leave granted.
D 2. This appeal arises out of the judgment and order dated
15th January, 2013 of the High Court of Delhi passed in
Criminal Miscellaneous Case No. 2961 of 2012 filed by the
respondent herein under Section 482 of the Criminal Procedure
Code. By the said judgment, the High Court quashed the
E criminal proceedings initiated by the appellant under Section
138 of the Negotiable Instruments Act, 1881 (hereinafter
referred to as 'the Act') against the respondent.
3. The brief history of the case, according to the appellant,
is that he had given a loan of Rs.60 lakhs to the respondent in:
F the month of November, 2011. In discharge of his obligation to"
the appellant, on 25th April, 2012, the respondent issued (i)
Cheque No. 889953, drawn on Allahabad Bank, for Rs.30
lakhs; (ii) Cheque No. 545420, drawn on ICICI Bank, for Rs.20
lakhs; and (iii) Cheque No. 545409, drawn on ICICI Bank, ·for
G Rs. 10 lakhs. When the appellant presented the said cheques
in his Bank for realization, they were dishon9ured by the
respondent's banker with remarks 'Stop Payment'.
4. The appellant, after receiving the communication from
H
PAWAN KUMAR RALLI v. MANINDER SINGH 1053
NARULA [N.V. RAMANA, J.]
his banker about the dishonour of Cheques, issued a A
handwritten notice (Annexure P4) to the respondent on 27th
April, 2012 calling upon him to make the payment. Upon non-
compliance by the respondent, a formal legal notice dated 24th
May, 2012 (Annexpure P5) was issued under Section 138/142
of the Act requiring the respondent to pay the cheques amount B
along with interest and costs. In his reply to the legal notice, the
respondent totally disagreed with the allegation of taking loan
from the appellant. Subsequently, the appellant filed a
Complaint Case against the respondent invoking Sections 138,
141 and 142 of the Act and Section 420, of the Indian Penal c
Code. The Metropolitan .Magistrate took cognizance arid
summoned the respondent who pleaded not guilty and claimed
to be tried.
5. During the pendency of trial, the respondent filed -
Criminal Miscellaneous Case before the High Court under D
Section 482, Cr.P.C. for quashing of criminal proceedings
pending before the Trial Court. The High Court expressed the
view that the complaint was not filed within a period of one
month after the expiry of 15 days of receipt of the notice dated
27th April, 2012 and hence it was barred by limitation under E
Section 142(b) of the Act and by the impugned judgment
quashed the criminal proceedings against the respondent.
Aggrieved by the order of the High Court, the appellant-
. complainant approached this Court by way of Special Leave
~@on. F
6. Before us, the case of the appellant is that the High
Court was not justified in exercising extra ordinary jurisdiction
under Section 482, Cr.P.C. The High Court incorrectly
considered the handwritten note as legal notice and calculated G
the limitation period accordingly. Whereas, the handwritten note
was only an intimation to the accused and according to the'
provisions of law, the actual notice within 30 days from the date .
of dishonour of the cheques, was issued on 24th May, 2012
and accordingly criminal proceedings were initiated well within H
1054 SUPREME COURT REPORTS [2014] 7 S.C.R.
A the limitation period. But, the High Court failed to take into
consideration this material fact and merely on the ground of 25
days delay from the date of service of handwritten note,
quashed the criminal proceedings. The High Court ignored the
fact that the Act clearly enables the Court to condone the delay,
B if any, beyond 30 days of limitation period under proviso to
Section 142(b) of the Act.
7. During the course of hearing, we felt it justifiable to have
assistance of a senior counsel and we accordingly appointed
C Mr. Huzefa Ahmadi, learned senior counsel as Amicus Curiae.
8. Learned Amicus submitted that the handwritten note
dated 27th April, 2012 whereby the appellant called upon the
respondent to make payment, would fall within the four corners
of 'notice' under Section 138(b) of the Act and there was a
D delay of 25 days in filing the Complaint under the provisions of
the Act. He further submitted that the proviso to Section 142(b)
of the Act confers power on the Court to condone the delay, if
the complainant satisfies the Court on the part of delay. As it
was believed by the Trial Court that since the legal notice was
E issued on 24th May, 2012 the limitation period would come into
force from that date only, there was no occasion for the
appellant to plead for sufficient cause for condonation of delay
as the question of delay did not arise before the Trial Court.
While issuing process, the Trial Court was clearly of the view
F that the Complaint was within limitation on the basis of
averments made in the Complaint. Therefore, the occasion did
not arise for the appellant to raise the plea of 'sufficient cause'
for the delay. Moreover, the respondent had also not raised the
question of limitation before the Trial Court and the issue of
G limitation was raised for the first time before the High Court.
9. Even otherwise, before quashing the criminal
proceedirigs on the ground of limitation, the High Court could
have decided whether sufficient cause was made out by the
appellant under the proviso to Section 142(b) of the Act, and if
'-i satisfied, it could have condoned the delay. Alternatively, the
PAWAN KUMAR RALLI v. MANIN DER SINGH 1055
NARULA [N.V. RAMANA, J.]
High Court could have remanded the matter to the Trial Court A
to determine the issue. In support of his submissions, he placed
reliance on a judgment of this Court in Rakesh Kumar Jain Vs.
State (Through CBI) (2000) 7 SCC 656, in which while
considering the provisions of Section 473, Cr.P.C. and
deciding the question whether on the ground of limitation, the B
accused is entitled to seek his discharge, this Court held:
"The mere fact that the complain( was filed 25 days after
the .expiry of the period of limitation did not entitle the
accused to seek his discharge under Section 245, Cr.P.C
because the complainant has, under law, a right to seek C
for extension of time under Section 473 Cr.P.C. The
complainant could satisfy the Magistrate on the facts and
circumstances of the case that the delay was explainable
which was occasioned on account of their bona fide belief
to obtain the sanction for the purpose of filing the D
complaint".
10. Learned Amicus finally submitted that the legislative
intent in inserting the proviso to Clause (b) of Section 142 of
the Act was only to protect the Cheque holders from the E
defaulters who issued the Cheques and the Court should act
reasonably in providing an opportunity to the Cheque holder to
present his version on the issue of delay if any. After taking into
consideration the reasons advanced by the Cheque holder, the
Court should consider the question of delay and then only it F
should pass an order. But in the present case, the High Court
adopted an unhealthy approach by passing the impugned order
quashing the criminal proceedings on the ground of limitation,
that too for a delay of only 25 days, without considering the
appellant's reasons for the delay. He further submitted that the G
observation of the High Court in the impugned order that
"allowing the appellant to pursue the Complaint against the
respondent would be an abuse of process" is also not in the
interest of justice.
11. Learned counsel for the respondent, on the other hand, H
1056 SUPREME COURT REPORTS [2014] 7 S.C.R.
A contended that there is no apparent error in the judgment of the
High Court in quashing the criminal proceedings on the ground
of limitation. The High Court has correctly treated the
handwritten notice sent by the appellant on 27th April, 2012 as
a valid notice in terms of Section 138 of the Act as the appellant
B had given the notice in writing within fifteen days of information
of dishonour of the Cheuqes from his banker. In support of this
contention learned counsel has cited the judgment of this Court 1
in Central Bank of India & Anr. Vs. Saxons Farms & Ors.
(1999) 8 SCC 221 wherein this Court held that though no form
c of notice is prescribed in Clause (b) of Section 138 of the Act,
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. So,
learned counsel argued that looking. at this settled legal
0
position, the first notice issued by the appellant on 27th April,
2012 had since fulfilled the criteria laid down by this Court, the
same has to be treated as 'notice' within the meaning of
Section 138(b) of the Act. Therefore, he submitted that the High
Court was right in considering the handwritten note as 'notice'
E for the purpose of calculating delay in filing the Complaint and
it rightly declared that the Complaint was barred by limitation.
12. Learned counsel for the respondent further contended
that even though the proviso to Section 142(b) of the Act
F facilitates condonation of delay if the complainant satisfies the
Court that he had cogent reasons for not making the complaint
within the limitation period, in the present case the complainant
had made no request before the High Court for availing such
benefit of condonation of delay. To substantiate his argument,
G learned counsel relied upon the counter affidavit filed by the
appellant before the High Court and submitted that there also
the appellant, instead of pleading for condonation of delay, took
the stand that the communication dated 27th April, 2012 shall
not be treated as notice, whereas it fulfilled all ingredients of a
H 'notice' under Section 138 of the Act. In support of his claim
PAWAN KUMAR RALL! v. MANINDER SINGH 1057
NARULA [N.V. RAMANA, J.]
~hat the matter is barred by limitation and requires to be A
bismissed at the threshold itself, he relied on this Court's
Judgment in Ramesh Chand Sharma Vs. Udham Singh
Kamal & Ors. (1999) 8 SCC 304 and submitted that in that
case also despite the objection of limitation raised by the
appellants, the first respondent did not file any application for B
condonation of delay and this Court had dismissed the O.A.
filed by the first respondent, on the ground of limitation.
13. Learned counsel for the respondent therefore firmly
opposed the plea of the learned Amicus that the matter has to C
be remanded back to the Trial Court for hearing the issue of
limitation by providing an opportunity to the appellant to avail
the remedy envisaged under the proviso to Section 142(b) of
the Act. He finally submitted that the High Court was right in
quashing the criminal proceedings and the impugned order
does not call for interference of this Court under Article 136 of D
the Constitution.
14. We have heard learned counsel at length. In view of
the conflicting approach adopted by the High Court in
determining the issue of limitation which subsequently led to the E
quashing of criminal proceedings pending before the Trial
Court, the following issues emerge for our consideration for the
disposal, of this matter:
(a) Whether the handwritten note sent by the appellant F
on 27th April, 2012 to the respondent could be
treated as 'notice' or the notice issued by the
advocate on 2'4th May, 2012 could only be treated
as 'notice' within the meaning of Section 138 of the
Act?
G
(b) If there was any delay in filing the Complaint in the
present case, whether such delay could have been
condoned by the High Court in accordance with the
provisions of the Act?
H
. 1058 SUPREME COURT REPORTS [2014] 7 S.C.R.
A (c) Whether ttie High Court was right in quashing the
criminal proceedings on the ground of limitation or
instead of quashing the criminal proceedings it
ought to have remitted the matter back to the Trial
Court for deciding the issue of limitation?
B
15. Before embarking on the above issues, we may notice
that the proviso appended to Section 138 of the Act limits the
applicability of the main provision stating:
138. Dishonour of cheque for insufficiency, etc. of funds
c in the account.-
Provided that nothing contained in this section shall apply
unless-
D
(a) the cheque has been presented to the bank within
a period of six months from the date on which it is
drawn or within the period of its validity, whichever
is earlier;
E (b) the payee or the holder in due course of the cheque,
as the case may be, makes a demand for the
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
F the bank. regarding the return of the Cheque as
unpaid; and
(c) the drawer of such Cheque fails to make the
payment of the said amount of money to the payee
G or, as the case may be, to the holder in due course
of the Cheque, within fifteen days of the receipt of
the said notice."
16. Section 142 of the Act also puts a limitation on the
power of the Court to take cognizance of the offences, which
H reads as under:
PAWAN KUMAR RALLI v. MANINDER SINGH 1059
NARULA [N.V. RAMANA, J.]
142. Cognizance of offences-Notwithstanding anything A
contained in the Code of Criminal Procedure, 1973 (2 of
1974),-
(a) no court shall take cognizance of any offence
punishable under Section 138 except upon a
8
complaint, in writing, made by the payee or, as the
case may be, the holder in due course of the
cheque;
(b) such complaint is made within one month of the
date on which the cause of action arises under C
clause (c) of the proviso to Section 138:
Provided that the cognizance of a complaint may be taken
by the Court after the prescribed period, if the complainant
satisfies the court that he had sufficient cause for not 0
making a complaint within such period.
(c) no Court inferior to that of a Metropolitan Magistrate
or a Judicial Magistrate of the First Class shall try
any offence punishable under Section 138.
E
17. Admittedly, in the case on hand, the Cheques in
question were issued by the respondent and the same were
dishonoured by the Bank on his instructions of 'stop payment'.
Two communications, one a handwritten note dated 27th April,
2012 by the appellant himself and the other a formal legal notice F
dated 24th May, 2012 issued by the advocate, were served on
the respondent calling upon him to pay the Cheque amounts.
The respondent did not respond to the handwritten
communication, but has replied to the legal notice issued
through advocate on 24th May, 2012 denying the allegation. G
Upon failure of the respondent to obey the handwritten
communication as well as the legal notice, the appellant initiated
criminal proceedings by filing Complaint Case on 5th July, 2012.
It appears that the respondent contested the matter before the
Trial Court and also filed an application under Section 91, H
1060 SUPREME COURT.REPORTS [2014] 7 S.C.R.
A Cr.P.C. warranting the appellant to produce various documents.
He has also moved an application under Section 410, Cr.P.C.
seeking transfer of the Complaint to a different Court. It is
noteworthy that all through out the pendency of proceedings
before the Trial Court, the respondent did not raise the issue
B of 'limitation'. The issue was raised for the first time before the
High Court in Section 482, Cr.P.C. proceedings. The High
Court, considering the handwritten note sent by the appellant
on 27th April, 2012 as 'notice' under Section 138 of the Act,
came to the conclusion that the complaint is barred by
c limitation.
18. This Court has already clarified in Central Bank of
India & Anr. (supra) that Section 138 of the Act does not
prescribe any specific form of notice, but mandates that it
should be issued in writing within thirty days (w.e.f. 6-2-2003)
D of receipt of information from the banker about the dishonour
of Cheque, with a demand to the drawer for making payment
of the said amount.
19. We have perused the handwritten note dated 27th April,
E 2012 (Annexure P4) and found that it was issued within the
mandatory period of thirty days of dishonour of cheques and
contained (a) the subject amount of Rs.60,00,000/- given by the
appellant as loan to the respondent under promissory notes;
(b) the details of Cheque numbers and dates of issue with
F amounts and particulars of Bank; (c) Returning of Cheques by
the banker dishonouring them on the grouna of 'Stop Payment'
by the respondent; (d) a demand for immediate repayment of
the amount; and (d) a caution to the respondent that in case of
failure on the part of respondent, the appellant would initiate
G legal proceedings. Thus, in our opinion, the handwritten note
dated 27th April, 2012 fulfilled the mandatory requirements
under clause (b) of proviso to Section 138 and could be said
to be a valid 'notice' in the light of this Court's Judgment in
Central Bank of India & Anr. (supra). Moreover, this document
(Annexure P4) stands admitted by the appellant in his cross
H
PAWAN KUMAR RALLI v. MANINDER SINGH 1061
NARULA [N.V. RAMANA, J.]
examination also. Therefore, in our opinion, the High Court has A
committed no error in considering the handwritten note dated
27th April, 2012 as 'notice' under Section 138 of the Act.
20. However, when the issue of limitation has come up for
the first time before the High Court, it ought to have dealt with B
the same on merits as per proviso to Section 142(b) of the Act.
The said proviso appended to clause (b) of Section 142 of the
Act was inserted by the Negotiable Instruments (Amendment
and Miscellaneous Provisions) Act, 2002 and the legislative
intent was, no doubt, in order to overcome the technicality of C
limitation period. The Statement of Objects and Reasons
appended to the Amendment Bill, 2002 suggests that the
introduction of this proviso was to...provide discretion to the
Court to take cognizance of offence even after expiry of the
period of limitation [See MSR Leathers Vs. S. Palaniappan
(2013) 1 SCC 177]. Only with a view to obviate the difficulties D
on the part of the Complainant, Parliament inserted the proviso
to clause (b) of Section 142 of the Act in the year 2002. It
confers a jurisdiction upon the Court to condone the delay [See
Subodh S. Salaskar Vs. Jayprakash M. Shah (2008) 13 SCC
68~. E
21. It is no doubt true that at the time of filing the complaint,
the Magistrate has to take cognizance of the complaint when
it is within limitation and in case of delay in filing the complaint,
the complaint has to come up with the application seeking F
condonation of delay. But, the peculiar fact of the present case .
is that in the complaint, the complainant had only averred that
he has sent the legal notice dated 24th May, 2012 but not
mentioned about the handwritten note dated 27th April, 2012.
Basing on the said averment, the learned Trial Judge was G
satisfied that the complaint is within the prescribed period of
limitation. Hence, in this case, raising the plea of limitation and\-
Court exercising the discretion to condone the delay did not
arise at all.
22. In the peculiar facts and circumstances of the case, H
1062 . SUPREME COURT REPORTS [2014] 7 S.C.R.
A · while keeping in mind the legislative intent and the specific plea
of the appellant raised in the grounds for the Special Leave
Petition that he should have been allowed to move an
application for condonation of delay before the Trial Court as
the respondent has not suffered any prejudice by reason of 25
B days delay, we strongly feel that the appellant should not have
been deprived of the remedy provided by the Legislature. In
fact, the remedy so provided was to enable a genuine litigant
to pursue his case against a defaulter by overcoming the
technical difficulty of limitation. Hence, the High Court has
c committed an error by not considering the issue of limitation
on merits.
23. In view of the settled principles of law in Rakesh Kumar
Jain, MSR Leathers. Subodh S. Salaskar (supra) and in the
peculiar facts and circumstances of the case, we are of the
D considered opinion that the High Court was not right in
quashing the complaint merely on the ground that complaint is
barred by limitation, that too a plea which was taken for the first
time before the High Court. On the other hand, the High Court
ought to have remanded the matter to the Trial Court for
E deciding the issue of limitation.
24. At the same time, we want to make it very clear that
by this observation we are not laying down a legal proposition
that without even filing an application seeking condonation of
F delay at an initial stage, complainant can be given opportunity
at any stage of the proceeding. As already discussed by us in
the foregoing paragraphs, we have come •o the irresistible
conclusion, to afford an opportunity for the complainant to move
an application seeking condonation of delay, under the peculiar
G facts and circumstances of the case.
25. For all the aforesaid reasons, in order to meet the ends
of justice, we exercise our discretion under Article 142 of the
Constitution and set aside the impugned judgment1of the High
Court quashing the criminal proceedings and restore the
H criminal proceedings before the Trial Court. The appellant is
PAWAN KUMAR RALLI v. MANINDER SINGH 1063
NARULA [N.V. RAMANA, J.]
,permitted to file an application for condonation of delay before A
th~ ·:rrial Court and if such an application is filed, the Trial Court
shafl be at liberty to consider the same on its own merits,
without being impressed upon by any of the observations by
this Co.urt, and pass appropriate orders:
B
. ~6. We are thankful to Mr. Huzefa Ahmadi, learned amicus
curiae, for his able assistance.
27. The appeal stands allowed with the aforesaid
observations.
c
Rajendra Prasad Appeal allowed.
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