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Legal requirement for notice issued under s.138 of ni act

 

Legal requirement for Notice issued under s.138 of NI Act

 
 It is well settled principle of law that the notice has to be read as a whole. In the notice, demand has to be made for the "said amount" i.e. cheque amount. If no such demand is made the notice no doubt would fall short of its legal requirement. Where in addition to "said amount" there is also a claim by way ofinterest cost etc. whether the notice is bad would depend on the language of the notice. If in a notice while giving up break up of the claim the cheque amount, interest damages etc. are separately specified, other such claims for interest, cost etc. would be superfluous and these additional claims would be severable and will not invalidate the notice. If, however, in the notice an omnibus demand is made without specifying what was due under the dishonoured cheque, notice might well fail to meet the legal requirement and may be regarded as bad.

Supreme Court of India
Suman Sethi vs Ajay K. Churiwal And Anr. on 2 February, 2000
Equivalent citations: AIR 2000 SC 828, 2000 (1) ALD Cri 550


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