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Rajasthan High Court
Criminal Law

Premature Cheque Bounce Complaint Does Not Leave the Payee Remediless: Rajasthan High Court

Published: · NyayVidhan

The Rajasthan High Court set aside an appellate judgment that had acquitted a cheque drawer only because the complaint under Section 138 of the Negotiable Instruments Act was filed before the fifteen-day payment period expired. Following Yogendra Pratap Singh v. Savitri Pandey and Gajanand Burange v. Laxmi Chand Goyal, it held that such a complaint cannot be taken cognizance of, but the payee may file a fresh complaint, with the delay treated as condoned (paras 13-14, 21).

Premature Cheque Bounce Complaint Does Not Leave the Payee Remediless: Rajasthan High Court

Judgment Intelligence

Other
Moolchand v. Bhairulal
2024:RJ-JP:15215
S.B. Criminal Appeal (Sb) No. 869/2023
Court
Rajasthan High Court
Date of Decision
28 March 2024
Bench
Justice Anoop Kumar Dhand
Relevant Acts & Sections
Negotiable Instruments Act, 1881 — Sections 138, 142
Final Outcome

Appeal disposed of. The Appellate Court's judgment of 24.05.2022 was set aside and the trial court's judgment modified: the appellant may file a fresh complaint within one month, with the delay treated as condoned, to be decided on the merits, preferably within a year (paras 21-24).

Key holdings

  1. A complaint filed before the fifteen days under Section 138(c) expire cannot be taken cognizance of (paras 11, 14).
  2. Under Yogendra Pratap Singh the payee may file a fresh complaint, the delay being treated as condoned; the direction covers all pending cases (para 12).
  3. An appellate court that finds the complaint premature should grant liberty to file afresh, not simply acquit the accused (para 13).
  4. A second complaint on the same facts does not amount to double jeopardy (para 15).
  5. The drawer cannot escape prosecution merely because the first complaint was premature (para 20).

Case explainer by NyayVidhan: an account of this judgment and the law it laid down, not the court's text. The judgment itself is the authoritative version.

Brief Facts

A cheque of Rs. 3,50,000 issued by the respondent to the appellant was dishonoured for "no balance" (para 3). The appellant's legal notice of 28.08.2012 reached the respondent on 01.09.2012; he replied on 06.09.2012 denying liability, and the appellant filed his complaint on 14.09.2012 (para 7). The Additional Chief Judicial Magistrate, Newai, convicted the respondent on 27.02.2018 and sentenced him to one year's simple imprisonment and a fine of Rs. 5,00,000 (para 7). On 24.05.2022 the Additional Sessions Judge, Newai, allowed his appeal and acquitted him on the ground that the complaint was premature (paras 1-2, 7). The complainant appealed, contending that the Appellate Court should have permitted a fresh complaint instead of acquitting (para 4).

Court's Findings

Under Section 138(c) the offence arises only if the drawer fails to pay within fifteen days of receiving the notice, and Section 142(b) then allows one month to file the complaint (para 8). The Court treated the issue as settled by Yogendra Pratap Singh: a complaint filed before the fifteen days expire is no complaint in the eye of law, but the payee may file a fresh complaint within one month of the decision in the criminal case, the delay being treated as condoned, and this applies to all pending cases (paras 9-12). Gajanand Burange followed that view (para 13). The Appellate Court ignored these directions: instead of granting liberty to file afresh, it rejected the complaint and acquitted the accused (para 13). The rule against premature complaints strikes a balance so that the complainant is not left remediless, and a second complaint on the same facts is not double jeopardy (paras 14-15). Invoking ‘Ubi Jus Ibi Remedium’ and Ashby v. White, the Court held that a complainant who acted too early cannot be punished for it, and the drawer cannot escape prosecution on that technical count (paras 16-20).

Legal Principle

A Section 138 complaint filed before the fifteen-day period after notice expires is not maintainable. The payee is not left remediless: he may file a fresh complaint on the same facts, the delay is treated as condoned under the proviso to Section 142(b), and the second complaint is not double jeopardy (paras 12, 14-15, 18).

Precedents Relied Upon

  1. Yogendra Pratap Singh v. Savitri Pandey (2015) AIR (SC) 157
    Followed Discussed at ¶ 4, 9, 10, 11, 12, 13, 14, 21

    A complaint under Section 138 filed before the expiry of fifteen days from service of notice is no complaint in the eye of law and cognizance cannot be taken on it; the payee may file a fresh complaint within one month of the decision in the criminal case, the delay being treated as condoned under the proviso to Section 142(b), and this applies to all pending cases.

  2. Gajanand Burange v. Laxmi Chand Goyal Criminal Appeal No. 1229/2022, decided on 12.08.2022
    Followed Discussed at ¶ 4, 13, 14, 21

    Following Yogendra Pratap Singh, the Supreme Court held a premature complaint not maintainable but gave the complainant liberty to institute a fresh complaint and seek the benefit of the proviso to Section 142(b).

  3. Ashby v. White (1703) 92 ER 126, (1703) 2 Ld Raym 938, (1703) 1 Sm LC (13th Edn) 253
    Relied Upon Discussed at ¶ 19

    When the law gives a person a right, he must have the means to vindicate and maintain it and a remedy if he is injured in its exercise; a right without a remedy is a vain thing.

NyayVidhan
Court Judgments · 3 min read
Decided: March 28, 2024 Justice Anoop Kumar Dhand
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