The mere fact that costs for miscellaneous expenses were claimed along with the cheque amount cannot be used to invalidate the proceedings: Orissa High Court
The high court of Orissa passed a judgment on 05 April 2023, and has held that a proceeding under Section 138 of the Negotiable Instruments Act cannot be invalidated only because the notice claims costs for some miscellaneous expenses alongside demanding the cheque amount. in the case of Hemalata Mohapatra v. Bijay Kumar Pradhani (CRLMC No. 545 of 2022), passed by the single Judge Bench of Justice Radha Krishna Pattanaik
Facts of the Case:
Three cheques totaling Rs. 14,00,000/- are said to have been issued by the petitioner to the opposing party, but when they were all brought to the bank, they all stood unhonoured because of insufficient funds. In order to get the petitioner to pay the cheque amount and, in the event of legal action, to cover all associated costs, including interest on the sum in addition to legal expenses, the opposing party delivered a legal notice. A complaint under Section 138 was filed because the payment was not made despite receiving this notice.
The Court took notice of a demand made by the opposing party via notice, requesting payment from the petitioner or else face legal action and, in such a situation, pay the cost of the proceeding in addition to other miscellaneous fees.
Judgment:
The Court cited the Supreme Court’s ruling in Vijay Gopala Lohar v. Panduram Ramachandra Ghorpade & Anr., which stated that when the loan amount and the amount on the check are the same, the notice issued with a demand for payment is legal. It also cited K.R. Indira v. Dr. G. Adinarayana, in which the Supreme Court said that if the notice mentions any additional sum that the check covers, it is not void. As a result, the criminal miscellaneous case was thrown out for lack of merit.
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JUDGEMENT REVIEWED BY HARSHEEN KAUR LUTHRA, RGNUL, PUNJAB
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