{"id":177916,"date":"2002-11-11T00:00:00","date_gmt":"2002-11-10T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/padmini-polymers-ltd-vs-unit-trust-of-india-on-11-november-2002"},"modified":"2018-02-09T18:24:00","modified_gmt":"2018-02-09T12:54:00","slug":"padmini-polymers-ltd-vs-unit-trust-of-india-on-11-november-2002","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/padmini-polymers-ltd-vs-unit-trust-of-india-on-11-november-2002","title":{"rendered":"Padmini Polymers Ltd. vs Unit Trust Of India on 11 November, 2002"},"content":{"rendered":"<div class=\"docsource_main\">Delhi High Court<\/div>\n<div class=\"doc_title\">Padmini Polymers Ltd. vs Unit Trust Of India on 11 November, 2002<\/div>\n<div class=\"doc_citations\">Equivalent citations: I (2003) BC 382, 2003 CriLJ 1053, 101 (2002) DLT 376, 2003 42 SCL 36 Delhi<\/div>\n<div class=\"doc_author\">Author: J Kapoor<\/div>\n<div class=\"doc_bench\">Bench: J Kapoor<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p>  J.D. Kapoor, J.   <\/p>\n<p>   Crl.A. Nos. 421 and 288 of 2002.\n<\/p>\n<p> 1. Both the petitions shall stand decided through<br \/>\nthis common order as these petitions arise from the same<br \/>\norder which is dated 18.12.2001.\n<\/p>\n<p> 2. Petitioners are the directors of M\/s Padmini<br \/>\nTechnologies Ltd. Through this petition they have<br \/>\nchallenged the impugned order dated 18.12.2001 whereby<br \/>\nthey were summoned as accused for having committed the<br \/>\noffence punishable under Section 138 Negotiable<br \/>\nInstruments Act (for short &#8220;Act&#8221;).\n<\/p>\n<p> 3. Admittedly the petitioner company M\/s Polymers<br \/>\nTechnologies Ltd. issued two cheques bearing Nos. 247869<br \/>\ndated 25.06.2001 for Rs. 60 lakhs and 247870 dated<br \/>\n27.06.2001 for Rs. 65 Lakhs drawn on Vijaya Bank, Ansari<br \/>\nRoad, Daryaganj, Delhi in favor of the respondent for<br \/>\nvaluable consideration and in discharge of their liability<br \/>\nlegally recoverable from them. On presentation the said<br \/>\ncheques were dishonoured. The factum of dishonoured<br \/>\ncheques was brought to the notice of the petitioner vide<br \/>\nletter dated 5.7.2001 sent on the letter head of the<br \/>\nrespondent company by its Chief General Manager. In the<br \/>\nsaid letter it was mentioned that the Trust was proposing<br \/>\nto initiate proceedings under Section 138 of the Act if<br \/>\nthe company would fail to pay the amount due to it.<br \/>\nPursuant to this communication and allegedly on the<br \/>\nrepresentation of the appellants the cheques were<br \/>\npresented on as many as three occasions but on each<br \/>\noccasion these were received dishonoured.\n<\/p>\n<p> 4. The respondents-company served a legal notice<br \/>\ndated 17.11.2001 upon the petitioners through Mr. P.<br \/>\nNath &amp; Company, Advocates, Supreme Court and High Courts<br \/>\nin terms of Section 138 of the Act calling upon the<br \/>\npetitioners to pay Rs. 1 Crore 25 lakhs together with<br \/>\ninterest @ 18% plus an amount of Rs. 21,000\/- towards<br \/>\ncost of the notice within 15 days from the receipt thereof<br \/>\nthrough demand draft\/pay order failing which they shall be<br \/>\ncompelled to file a criminal complaint. there was no<br \/>\nresponse to the said notice nor was the payment made<br \/>\nwithin 15 days. As a consequence the respondents filed a<br \/>\ncomplaint under Section 138 of the Act resulting in the<br \/>\nsummoning order.\n<\/p>\n<p> 5. Main premise of challenge of the impugned order<br \/>\nis that the complaint is time barred and is not<br \/>\nmaintainable as the first notice as contemplated under<br \/>\nSection 138 of the Act was served upon the company on<br \/>\n5.7.2001 and the complaint ought to have been filed by<br \/>\ncomplainant under Section 138 of the Act within 15 days<br \/>\nand since the complaint was filed in December, the same is<br \/>\nhopelessly barred by time. Apart from this, Mr. Sandip<br \/>\nSethi, learned counsel for the petitioners has referred to<br \/>\na notice dated 24.10.2001 which was served upon the<br \/>\npetitioners as Directors of M\/s Padmini Polymers Ltd.<br \/>\nwhereas the last notice dated 17.11.2001 was served upon<br \/>\nthem as directors of M\/s Padmini Technologies Ltd. This<br \/>\nconfusion has arisen because the original name of the<br \/>\ncompany M\/s Padmini Polymers Ltd. was changed to M\/s<br \/>\nPadmini Technologies Ltd.\n<\/p>\n<p> 6. So far as the letter dated 5.7.2001 which is<br \/>\nbeing used as sheet anchor by the petitioners is concerned<br \/>\nit cannot by any stretch of imagination be termed as<br \/>\nnotice served upon the respondents as contemplated under<br \/>\nSection 138 of the Act. Simply because a reference was<br \/>\ngiven for initiating proceedings under Section 138 of the<br \/>\nAct does not give a colour of notice as contemplated under<br \/>\nSection 138 of the Act. Through this letter, only the<br \/>\nfact that the cheque have been dishonoured was brought to<br \/>\nthe notice of the petitioners calling upon them to make<br \/>\nthe payment immediately of the outstanding dues. It was<br \/>\nnot a legal notice whereby the petitioners were called<br \/>\nupon to make the payment within 15 days of the receipt of<br \/>\nsaid notice as contemplated under Sub-clause (c) of<br \/>\nSection 138 of the Act.\n<\/p>\n<p> 7. The notice as contemplated under Section 138 of<br \/>\nthe Act served upon the respondents is the one which is<br \/>\ndated 17.11.2001 which was given through an Advocate and<br \/>\nthrough which the petitioners were called upon to pay the<br \/>\noutstanding dues with interest as well as cost of the<br \/>\nnotice within 15 days from the receipt thereof. The<br \/>\ncontention at this stage that during the period from<br \/>\n5.7.2001 to 17.11.2001 some talks took place between the<br \/>\nparties and the assurance was given that they would make<br \/>\npayment appears to be prima facie worthy of credence as<br \/>\nthe cheque were presented on as many as three occasions.<br \/>\nEven otherwise the cheques can be presented as many times<br \/>\nas the respondents deem proper but within the period of<br \/>\nits validity or six months which is earlier. <a href=\"\/doc\/372711\/\">In<br \/>\nSadanandan Bhadran v. Madhavan Sunil Kumar,<\/a> 1998 (3)<br \/>\nCrimes 217 (SC) it was observed that without taking<br \/>\npre-emptory action in exercise of his such right under<br \/>\nClause (b) of Section 138, a party can go on presenting the<br \/>\ncheque so as to enable him to exercise such right at any<br \/>\npoint of time during the validity of the cheque. But,<br \/>\nonce he gives a notice under Clause (b) of Section 138 he<br \/>\nforfeits such right for in case of failure of the drawer<br \/>\nto pay the money within the stipulated time he would be<br \/>\nliable for the offence and the cause of action for filing<br \/>\nthe complaint will arise.\n<\/p>\n<p> 8. Needless to say, the period of one month for<br \/>\nfiling the complaint will be reckoned from the day<br \/>\nimmediately following the day on which the period of<br \/>\nfifteen days from the date of the receipt of the notice by<br \/>\nthe drawer expires. In view of this provision the Supreme<br \/>\nCourt held that the cheque can be presented within six<br \/>\nmonths of its issue or within the period of validity or<br \/>\nearlier for any number of times. It is only when a notice<br \/>\ncalling upon the drawer of the cheque to make the payment<br \/>\nof the amount of the cheque within 15 days of the receipt<br \/>\nthereof is issued pursuant to the last presentation of the<br \/>\ncheque which can be termed as a notice under Section 138<br \/>\nof the Act.\n<\/p>\n<p> 9. Unless an until the intention is clear on the<br \/>\npart of the person giving notice that the payment by the<br \/>\ndrawer of the cheque should be made within 15 days of<br \/>\nreceipt thereof any communication between the parties<br \/>\ninsisting for making the payment cannot be termed as a<br \/>\nnotice under Section 138 of the Act. Otherwise the<br \/>\npurpose of presenting the cheque time and again during the<br \/>\nperiod of validity would have no meaning. The period of<br \/>\nlimitation to file the complaint stars running from the<br \/>\nlast notice which is given strictly in terms of Section<br \/>\n138 wherein the limit of 15 days for making the payment<br \/>\nfrom the receipt of notice is specifically mentioned or<br \/>\nreferred to.\n<\/p>\n<p> 10. Thus it is only when a notice under Section 138<br \/>\nis served and the aggrieved party fails to initiate the<br \/>\nproceedings within time that it forfeits the right to<br \/>\nproceed subsequently and thereafter presentation of the<br \/>\ncheques is not permissible nor is the dishonouring of the<br \/>\ncheque of any relevance.\n<\/p>\n<p> 11. Thus on prima facie view of the matter and the<br \/>\nfacts of the case coupled with the notice dated 17.11.2001<br \/>\nserved upon the company on whose behalf the cheque were<br \/>\nissued. I perceive no reason to interfere with the<br \/>\nimpugned order. The petition has no merit and is hereby<br \/>\ndismissed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Delhi High Court Padmini Polymers Ltd. vs Unit Trust Of India on 11 November, 2002 Equivalent citations: I (2003) BC 382, 2003 CriLJ 1053, 101 (2002) DLT 376, 2003 42 SCL 36 Delhi Author: J Kapoor Bench: J Kapoor JUDGMENT J.D. Kapoor, J. Crl.A. Nos. 421 and 288 of 2002. 1. Both the petitions shall [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[14,8],"tags":[],"class_list":["post-177916","post","type-post","status-publish","format-standard","hentry","category-delhi-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Padmini Polymers Ltd. vs Unit Trust Of India on 11 November, 2002 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/padmini-polymers-ltd-vs-unit-trust-of-india-on-11-november-2002\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Padmini Polymers Ltd. vs Unit Trust Of India on 11 November, 2002 - Free Judgements of Supreme Court &amp; 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