Crl. Misc. A-163-MA of 2011 -1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Crl. Misc. A-163-MA of 2011 Date of decision: November 29, 2011 M/s Paras Rang Chem .....Applicant VERSUS Vinod Mahajan .....Respondent CORAM: HON'BLE MR JUSTICE T.P.S.MANN PRESENT: Mr Deepinder Singh, Advocate for Mr Sudhir Sharma, Advocate for the applicant. T.P.S.MANN, J. (Oral): The complainant/applicant has prayed for the grant of special leave to appeal against the judgment dated 7.10.2010 passed by Judicial Magistrate Ist Class, Amritsar, whereby the accused-respondent has been exonerated of the charge under Section 138 of the Negotiable Instruments Act. The cheque in question was issued on 30.10.2001. Though it was presented by the complainant to its banker on 27.4.2002 yet it reached the drawer's bank on 1.5.2002 and dishonoured with the remarks “account transferred to S.B.I., Commercial Branch, Amritsar”. In Shri Ishar Alloy Steels Ltd. vs Jayaswals NECO Ltd. (2001) 3 Supreme Court Cases 609, it was held by the Hon'ble Supreme Court that under Section 138 of the Act, the cheque is required to be presented within six months at the bank on which it is drawn, whether presented personally or through another bank, namely, the collecting bank of the payee. Relevant observation made is as under: Crl. Misc. A-163-MA of 2011 -2- “10. It, however, does not mean that the cheque is always to be presented to the drawer's bank on which the cheque is issued. The payee of the cheque has the option to present the cheque in any bank including the collecting bank where he has his account but to attract the criminal liability of the drawer of the cheque such collecting bank is obliged to present the cheque in the drawee or payee bank on which the cheque is drawn within the period of six months from the date on which it is shown to have been issued. In other words a cheque issued by (A) in favour of (B) drawn in a bank named (C) where the drawer has an account can be presented by the payee to the bank upon which it is drawn i.e. (C) bank within a period of six months or present it to any other bank for collection of the cheque amount provided such other bank including the collecting bank presents the cheque for collection to (C) bank. The non presentation of the cheque to the drawee bank within the period specified in the Section would absolve the person issuing the cheque of his criminal liability under Section 138 of the Act, who shall otherwise may be liable to pay the cheque amount to the payee in a civil action initiated under the law. A combined reading of Sections 3, 72 and 138 of the Act would leave no doubt in our mind that the law mandates the cheque to be presented at the bank on which it is drawn if the drawer is to be held criminally liable. Such presentation is necessarily to be made within six months at the bank on which the cheque is drawn, whether presented personally or through another bank, namely, the collecting bank of the payee. 11. We have perused the judgments of the Punjab & Haryana, Gujarat and Madras High Courts and their conflicting views and are of the opinion that the Madras High Court has not correctly interpreted the provisions Crl. Misc. A-163-MA of 2011 -3- of law in this behalf. 12. As, admittedly, in this case the cheque was not presented before the drawer's bank within the statutory period of six months, the criminal Court had no jurisdiction to issue the process against the appellant. .........” In the case in hand, the cheque had reached the drawer's bank on 1.5.2002 which was beyond the period of six months from the date on which it was shown to be issued. In view of the above, no case is made out for the grant of special leave to appeal against the judgment of the acquittal. The application is, accordingly, dismissed. (T.P.S.MANN) November 29, 2011 JUDGE Pds.