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Punit Gupta (Owner)     23 June 2025

Relief to drawee us 138 ni act if the legal notice to drawer is not delivered.

What the relief avaialble to the holder of a cheque if in case of default, the legal notice to Drawer is not being delivered due to wrong address available with the drawee or also what if the drawer is willing not receving the legal notice citing any reason.



 14 Replies

R.K Nanda (Advocate)     23 June 2025

Search Google for lawyer. 

T. Kalaiselvan, Advocate (Advocate)     24 June 2025

A cheque bounce case under Section 138 of the Negotiable Instruments Act generally cannot be filed if the accused has not received the legal notice.

The law requires that a legal notice be sent to the drawer of the cheque, giving them 15 days to make the payment, before a complaint can be filed. 
 
If the drawer does not receive the notice, it is generally considered that the cause of action for filing a complaint under Section 138 has not arisen.
The complainant has to prove that the notice was properly served. If the accused claims they did not receive it, the court will consider the evidence to determine if the notice was indeed served. 
 
 
 

Advocate Bhartesh goyal (advocate)     24 June 2025

It is mandatory to serve a notice to drawer before filing complaint u/sec 138 of N.I.Act.Drawee has to sent notice on correct and last known address of drawer, Notice sent on wrong address of drawer will make complaint fatal.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     24 June 2025

Section 27 of the General Clauses Act, 1897, deals with the service of documents by post. It establishes a presumption that service is effected when a document is sent by registered post, provided it is properly addressed, prepaid, and posted. This means the recipient is presumed to have received the document at the time it would have been delivered in the ordinary course of post, unless they can prove otherwise. 

If the notice has been sent to the last known address by Registered Post that is enough even if the notice is not received by the addressee for whatever reason.

Dr. J C Vashista (Advocate )     25 June 2025

Section 27 of the General Clauses Act, 1897, deals with the service of documents by post. It establishes a presumption that service is effected when a document is sent by registered post, properly addressed and prepaid. Unless the contrary is proven, the service is deemed to be effected at the time the letter would be delivered in the ordinary course of post. 

In the instant case provisions of Section 27 of the General Clauses Act, 1897 shall not apply as the address of drawer of the subject cheque is incorrect. You will have to locate correct address of drawer of the cheque within 30 days of dishonour of the cheque for issuance of notice giving 15 days time to pay the cheque amount for filing a complaint u/s 138 of the NI Act, 1881

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     26 June 2025

It is not clearly stated how and why the notice was sent to wrong address. If the drawer of the cheque had given his address to the drawee at the time of delivering the cheque, but later moved to another address without intimating the drawee, the drawee can claim under Section27. It is also necessary that the notice should have been sent by Registered Post and not by private courier.

Sudhir Kumar, Advocate (Advocate)     28 June 2025

It is complainant's duty to furnish crrect address of respondent. 

P. Venu (Advocate)     28 June 2025

There could be no cause of action under Section 138 unless the mandatory address is served. You have the option of filing a civil case.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     30 June 2025

During the course of the transactions the accused may have provided his address to the complainant and the latter may have accepted the same in good faith. That is enough under Section 27

 

 

1 Like

Dr. J C Vashista (Advocate )     03 July 2025

Provisions of Section 27 of the General Clauses Act, 1897 are not applicable in the instant case, I reiterate.

Punit Gupta (Owner)     09 July 2025

The reason for wrong address is both parties knew each other as they worked in the same company, different postions. Owing to this cordial relation, the drawee had lent some money to the Drawer of cheque on the pretext of meeting medical expences of his parents. Now, since both had been working in the same organsation. the drawee did not bother to check the current address and the permanent address of the drawer, though both had executed a document on Rs.100/- stamp paper, with 2 witnesses, in that doucment only the addresses are given. So we had to rely on these addresses only. Now what after detailed investigation of the matter, the drawee came to know about the real address of drawer but the timeline of 30 days has passed.
What is the wayout now??
Please assist 

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     09 July 2025

You had executed an agreement with the drawer of the cheque and in the agreement the address of the drawer was given.  You sent your notice to the address given in the agreement. You sent your notice to his last address known to you. It was not an error on your part. That is enough. One cannot go on chasing the address. The opposite party may even refuse to give you his current address to avoid service of the notice. If at all, only the court can decide whether you have satsfied the requirements of NI-138. If the court admits your case, the court will send notice to the opposite party. The notice gives an opportunity to the opposite party to settle the matter. Plain common sense says if the reason the opposite party had was he did not receive your notice he can agree to pay the amount on receiving the court notice. But sadly common sense is a rare commodity with the legal fraternity.

Sudhir Kumar, Advocate (Advocate)     11 July 2025

Whther two persons have signed eed as guatatory or meely witnesses.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     13 July 2025

When it is only a question of addressing the notice under  NI-138, whether the two signed as witnesses or guarantors is not relevant.


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