Notice sent to proper address is proper service: HC

Justice C Praveen Kumar of the High Court at Hyderabad declared that notice sent to the proper address of the drawer is proper service under Section 138 of the Negotiable Instruments Act. The judge accordingly allowed a criminal appeal filed by P Ranga Rao of Rajendranagar and convicted K Chandriah of the Bharat Vaddera Labour Contractor Cooperative Society. When a cheque issued for a sum of Rs 2 lakh in July 2014, by the accused in favour of the complainant bounced, he filed the present complaint.

The court of the VIII Metropolitan Magistrate at Rajendranagar dismissed the complaint on the ground that the statutory notice under the Act was not properly served. Setting aside the said finding, Justice Praveen Kumar said that if the notice is sent by registered post by correctly addressing the drawer of the cheque “the mandatory requirement of issue of notice in terms of clause (b) of proviso to Section 138 of the Act stands complied with”. The judge then proceeded to deal with the merits and convicted the accused with a fine of Rs 2.1 lakh and to undergo simple imprisonment for six months.