Madras High Court has quashed a cheque bounce case when it found that the cheque was presented to the bank after its validity period.
A bench of Justice Ilanthiraiyan has passed the order in the case titled as M.Meeran Mohideen vs B.Vijayakumar on 18.09.2019.
Complainant/respondent instituted the proceeding under Section 138 of the Negotiable Instrument Act on the allegation that the petitioner issued a cheque dated 10.03.2017 and when the same was presented for collection through their bank viz., Canara Bank, Ramanputhoor branch on 21.03.2017, the said was dishonored with an endorsement “Overwriting”.
Subsequently, the petitioner requested the respondent to wait for six months to settle the amount. Even then, the petitioner did not settle the amount as promised by him.
Therefore, again, the cheque was represented for collection through the bank on 26.09.2017 and the same was returned for the reason “Instrument out dated stale” on 27.09.2017. Immediately, he sent a statutory notice on 07.10.2017 to the petitioner and the same was also served to the petitioner on 10.10.2017.
Even within 15 days, he did not settle the amount and hence, he initiated the proceedings under the negotiable instrument Act.
When the matter reached the High Court, it observed and held "In view of the same, the instrument viz., the Cheque is valid only for a period of 6 months from the date of issuance of the same. In the case on hand, admittedly, the cheque was presented only after the period of 6 months viz., 26.09.2017. Therefore, the cheque dated 10.03.2017 become invalid and hence, the entire proceedings has been vitiated and the learned Judicial Magistrate without even considering the said fact, mechanically taken cognizance and issued summons to the petitioner. Therefore, this Court is of the view that the proceedings under Section 138 of the Negotiable Instrument is liable to be quashed".
Read the Order here:
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