Proper Service of Legal Demand Notice Crucial in Cheque Dishonor Cases: Delhi High Court Upholds Acquittal

In a significant ruling that underscores the importance of procedural accuracy in cheque dishonor cases, the Delhi High Court yesterday reaffirmed the necessity of properly serving legal demand notices. The court, led by Hon’ble Mr. Justice Amit Sharma, dismissed an appeal challenging the acquittal of a respondent in a Section 138 Negotiable Instruments Act case, citing the appellant’s failure to prove the service of the legal demand notice.

The case, whichh involved the dishonor of cheques worth Rs. 4,00,000, saw the appellant challenge the acquittal of the respondent on the grounds that the service of the legal demand notice was not adequately established. In its detailed judgment, the court observed, “The requirement of the service of notice has not been complied with by the appellant, and the requisite conditions to file a complaint under Section 138 of the NI Act are not fulfilled in this case.”

This decision emphasizes the court’s stance on the adherence to legal protocols in cases of cheque dishonor. The Hon’ble Justice Sharma further added, “Service of notice of demand in clause (b) of the proviso to Section 138 is a condition precedent for filing a complaint under Section 138 of the Act.” This statement reinforces the legal necessity of following due process in these cases.

The judgment also delves into the principles governing appeals against acquittal, highlighting the appellate court’s cautious approach in such matters. The court, while acknowledging the principles laid down by the Hon’ble Supreme Court in previous judgments, reiterated the importance of the presumption of innocence in favor of the accused, particularly in cases of acquittal.

Date of Decision:: 1^st December, 2023

BHAVNA  VS STATE & ANR