Quashing of Complaint - The Legal Chamber

In a significant ruling under the Negotiable Instruments Act, 1881, the Supreme Court held that a demand notice under Section 138 Proviso (b) must specify the exact cheque amount. Demanding a different sum, even due to a typographical error, renders the notice legally invalid and fatal to the complaint, as the provision mandates strict compliance. Facts Of The Case: The appellant, Kaveri Plastics, filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, against the respondents. The case originated from a Memorandum of Understanding related to the sale of land. As part of this agreement, the accused company issued a cheque for Rs. 1,00,00,000/- in favour of the appellant. However, upon presentation, the cheque was dishonoured by the bank due to "insufficient fund...

The Supreme Court quashed the criminal defamation proceedings against the bank officials. It held that for offences under the Indian Penal Code, there is no concept of vicarious liability. Prosecuting officers without arraigning the company as an accused and without specific allegations of their culpable role is impermissible and an abuse of process. Facts Of The Case: The case originated from a loan default by Phoenix India, which had secured credit facilities from the Bank of Baroda. After the firm's account was classified as a non-performing asset, the Bank initiated recovery under the SARFAESI Act. A critical error occurred when the Bank issued a symbolic possession notice under Section 13(4) of the Act, which inadvertently quoted the outstanding dues as approximately Rs. 56.15 cro...

Tag: Quashing of Complaint

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