Section 138 NI Act, Cheque Dishonour, Demand Notice Service, Presumption of Service, C.C. Alavi Haji, M.D. Thomas, Per Incuriam, Criminal Appeal, Negotiable Instruments Act
 30 Sep, 2026
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Sainaba Vs. State Of Kerala & Anr.

  Supreme Court Of India SLP(Crl.) No.17180 of 2025
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Case Background

As per case facts, the appellant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, against respondent No.2 for a dishonoured cheque. A statutory demand notice was ...

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Document Text Version

2026 INSC 1069

SLP(Crl.) No.17180 of 2025 Page 1 of 16

REPORTABLE

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO.________ OF 2026

(ARISING OUT OF SLP (CRL. ) NO.17180 OF 2025)

SAINABA ….APPELLANT

VERSUS

STATE OF KERALA & ANR. ....RESPONDENTS

J U D G M E N T

MANMOHAN, J.

1. Leave granted.

2. Present appeal has been filed challenging the judgment and order dated 29

th

July 2025 passed by the Kerala High Court in Crl. R.P. No. 865 of 2023, whereby

the concurrent findings of the Trial Court and the Appellate Court convicting and

sentencing respondent No.2 under Section 138 of the Negotiable Instruments Act,

1881 (“the Act, 1881”) , were set aside on the ground of non-compliance of proviso

(b) to Section 138 of the Act, 1881 inasmuch as the statutory demand notice had

not been served upon respondent No.2, but was served upon the mother of

respondent No.2.

3. A perusal of the paper book shows that notice in the present matter was

issued on 10

th

November 2025 and the same was served upon respondent No .2 on

SLP(Crl.) No.17180 of 2025 Page 2 of 16

11

th

December 2025. Despite due service of notice, there is no appearance on

behalf of respondent No.2. Consequently, this Court had no option but to proceed

with hearing of the matter.

BRIEF FACTS

4. In the complaint under Section 138 of the Act 1881 , it was alleged by the

appellant-complainant that respondent No.2 had borrowed a sum of Rs.3,00,000/-

from the appellant- complainant. Towards re-payment of the same, respondent

No.2-accused had issued a cheque bearing Cheque No . 479097 drawn on the

Catholic Syrian Bank, Perumbavoor Branch, which was dishonoured upon

presentation.

5. The appellant-complainant issued a statutory demand notice dated 31

st

August 2016 through registered post at the correct address of respondent No.2 ,

which was received by his mother. Despite receipt of notice at his address,

respondent No.2 did not make any payment or file any reply to the legal notice.

6. Thereafter, the appellant-complainant instituted the present complaint

under Section 138 of the Act, 1881 being S.T. Case No. 114 of 2017. When

respondent No.2 was examined under Section 313 of Code of Criminal Procedure,

he stated that he had altogether borrowed Rs.7,00,000/- from the complainant but

had repaid the entire amount. He further stated that he had given a blank signed

cheque while borrowing Rs.3,00,000/-.

SLP(Crl.) No.17180 of 2025 Page 3 of 16

7. The Trial Court by way of its judgment dated 10

th

July 2019 convicted

respondent No.2 under Section 138 of the Act, 1881 and sentenced him to undergo

simple imprisonment for six months along with a fine of Rs.3,00,000/ -, with a

default stipulation of further imprisonment. The relevant portion of the Trial Court

judgment with respect to service of notice is reproduced hereinunder:

“8. One of the contentions taken by the accused is that lawyer notice was not

received by the accused and the same was received by one Amina. Exhibit P4 is the

receipt of the lawyer notice and Ext.P5 is the acknowledgement card of the lawyer

notice. On perusal of Ext.P3 lawyer notice, Ext.P5 acknowledgement card it would

show that address mentioned in those documents is one and the same as mentioned

in the complaint and vakalath of the accused. When the summons was issued from

the court in the same address, accused appeared before the court and contested the

matter. What the provision of the Negotiable Instruments Act mandates is issue a

registered demand notice to the accused. In this case complainant has issued

Ext.P3 lawyer notice demanding the amount in the correct address of the accused.

By sending lawyer notice in the correct address of the accused complainant has

complied with the mandatory requirement under the provisions of the Negotiable

Instruments Act.”

8. The respondent No .2 filed Criminal Appeal No. 175 of 2019 challenging

the judgment of the T rial Court, which was dismissed by Additional District &

Sessions Judge by judgment dated 16

th

February 2023. The relevant portion of the

Appellate Court judgment with respect to service of notice is reproduced

hereinunder:

“11. In the instant case, perusal of the records shows that the legal demand notice

was sent by the complainant on the correct address of the accused. It is to be noted

that the accused has not challenged the correctness of the address in the plea of

defence. It is also be noted that in reply to the question u/s 313 Cr.P.C. the accused

has not taken up any contention regarding the correctness of his address. It is also

to be noted that the mother of the accused has received the demand notice issued

through registered post. In the above circumstance it can be safely concluded that

the statutory demand notice was served to the accused.”

SLP(Crl.) No.17180 of 2025 Page 4 of 16

9. Respondent No.2 filed Criminal Revision Petition No. 865 of 2023 before

the High Court of Kerala at Ernakulam . By the Impugned Judgment, High Court

has allowed the Criminal Revision filed by respondent No.2 on the ground that

statutory demand notice under Section 138 of the Act, 1881 had not been served

upon respondent No .2-accused but had been served upon mother of respondent

No.2. The relevant portion of the impugned judgment is reproduced hereinbelow:

“23. …Unless there is evidence to show that the accused is aware of the notice sent

by the complainant, this Court cannot conclude that notice is served to the accused.

I can understand if PW1 deposed that even though notice is served to 'Amina', the

accused is aware of the same, the burden shifts back to the accused to prove that

he was not aware. But there is no such case to the complainant that the accused

was aware of the receipt of notice by 'Amina'. It is proved beyond reasonable doubt,

in the light of Ext.P5, that 'Amina' received the notice….”

ARGUMENTS ON BEHALF OF THE APPELLANT

10. Learned counsel for the appellant submitted that the impugned judgment is

contrary to the judgments of this Court including C.C. Alavi Haji v s. Palapetty

Muhammed (2007) 6 SCC 555, D. Vinod Shivappa vs. Nanda Belliappa (2006)

6 SCC 456, Madan & Co. vs. Wazir Jaivir Chand (1989) 1 SCC 264 and Subodh

S. Salaskar v s. Jayprakash M. Shah (2008) 13 SCC 689, wherein th is Court has

categorically held that dispatch of a notice by registered post to the correct address

of the drawer raises a presumption of due service under Section 27 of the General

Clauses Act, 1897 (“the Act, 1897”) and Section 114 of the Indian Evidence Act,

1872 (“the Act, 1872”).

SLP(Crl.) No.17180 of 2025 Page 5 of 16

11. He emphasised that once the notice is sent by registered post to the correct

address of the drawer, it is not for the complainant to prove its receipt by the

addressee-drawer.

12. He stated that in the present case, the notice had been dispatched to the

correct address of respondent No.2 but the same was received by his mother who

resided with respondent No.2. He pointed out the respondent No .2 never

challenged the correctness of the address, instead, he appeared before the Court

pursuant to summons served at the very same address.

13. He contended that respondent No .2 had failed to rebut the presumption of

due service and that the receipt of notice by mother at his correct residential

address is not a valid rebuttal.

14. According to him, the reasoning adopted by the High Court has the effect

of reducing the efficacy of Section 138 of the Act as it provides an unscrupulous

drawer with an easy escape from liability by ensuring that notices are received by

family members and not the drawer even though it may be sent to the correct

address of the drawer.

15. Learned counsel for the appellant lastly submitted that the High Court acted

in excess of its revisional jurisdiction under Section 397 Cr.P.C. by re-

appreciating the entire evidence and substituting its own view for the concurrent

findings of fact meticulously recorded by the Trial Court and affirmed by the

Appellate Court which is impermissible in law. He emphasised that the revisional

SLP(Crl.) No.17180 of 2025 Page 6 of 16

court is not a second appellate court and cannot interfere with findings of fact

unless they are perverse or based on no evidence, which is not the case here.

16. Learned counsel for the respondent-State of Kerala states that the State of

Kerala is not a contesting respondent as the present matter pertains to dishonour

of cheque issued by the respondent No .2 on account of insufficiency of funds.

REASONING

17. Having heard learned counsel for the appellant and having perused the

paper book, this Court is of the view that the impugned judgment passed by the High Court warrants interference.

RELEVANT PROVISIONS

18. Under proviso (b) to Section 138 of the Act, 1881, it is incumbent upon the

payee to make a demand for payment of the cheque amount by giving a notice in

writing to the drawer of the cheque within thirty days from the date of receipt of

information regarding the dishonour of the cheque. The cause of action for

prosecuting the drawer arises only upon his failure to make payment within fifteen

days of receipt of such notice. For ready reference, Section 138 of the Act, 1881

is reproduced hereinbelow:-

“138. Dishonour of cheque for insufficiency, etc., of funds in the account.—

Where any cheque drawn by a person on an account maintained by him with a

banker for payment of any amount of money to another person from out of that

account for the discharge, in whole or in part, of any debt or other liability, is

returned by the bank unpaid, either because of the amount of money standing to

the credit of that account is insufficient to honour the cheque or that it exceeds the

amount arranged to be paid from that account by an agreement made with that

bank, such person shall be deemed to have committed an offence and shall, without

prejudice to any other provisions of this Act, be punished with imprisonment for a

SLP(Crl.) No.17180 of 2025 Page 7 of 16

term which may be extended to two years, or with fine which may extend to twice

the amount of the cheque, or with both:

Provided that nothing contained in this section shall apply unless—

(a) the cheque has been presented to the bank within a period of six months from

the date on which it is drawn or within the period of its validity, whichever is

earlier;

(b) the payee or the holder in due course of the cheque, as the case may be, makes

a demand for the payment of the said amount of money by giving a notice in

writing, to the drawer of the cheque, [within thirty days of the receipt of

information by him from the bank regarding the return of the cheque as unpaid;

and

(c) the drawer of such cheque fails to make the payment of the said amount of

money to the payee or, as the case may be, to the holder in due course of the

cheque, within fifteen days of the receipt of the said notice.

Explanation.— For the purposes of this section, “debt or other liability” means a

legally enforceable debt or other liability.

19. Section 27 of the General Clauses Act, 1897 embodies the principle of

presumption of service in respect of a document dispatched by registered post.

Section 27 of the Act, 1897 is reproduced hereinbelow:

“27. Meaning of service by post. -- Where any Central Act or Regulation made

after the commencement of this Act authorizes or requires any document to be served by post, whether the expression serve or either of the expressions give or send or any other expression is used, then, unless a different intention appears,

the service shall be deemed to be effected by properly addressing, pre- paying and

posting by registered post, a letter containing the document, and, unless the contrary is proved, to have been effected at the time at which the letter would be

delivered in the ordinary course of post.”

REBUTTABLE PRESUMPTION OF VALID SERVICE

20. In K. Bhaskaran vs. Sankaran Vaidhyan Balan & Anr., (1999) 7 SCC

510, the issue before this Court was whether any cause of action arises if the notice

sent by the complainant to the accused is returned as unclaimed. This Court held

that ‘giving of notice’ is different from ‘receiving of notice’. It was further held

that where the sender has dispatched the notice by registered post to the correct

address, service may be deemed to have been effected upon the sendee, unless the

SLP(Crl.) No.17180 of 2025 Page 8 of 16

sendee establishes that the notice was not, in fact, served and that such non- service

was not attributable to him. The relevant portion of the judgment in K. Bhaskaran

(supra) is reproduced hereinbelow:

“24. No doubt Section 138 of the Act does not require that the notice should be

given only by “post”. Nonetheless the principle incorporated in Section 27

(quoted above) can profitably be imported in a case where the sender has

despatched the notice by post with the correct address written on it. Then it can

be deemed to have been served on the sendee unless he proves that it was not

really served and that he was not responsible for such non-service. Any other

interpretation can lead to a very tenuous position as the drawer of the cheque

who is liable to pay the amount would resort to the strategy of subterfuge by

successfully avoiding the notice.

25. Thus, when a notice is returned by the sendee as unclaimed such date would be

the commencing date in reckoning the period of 15 days contemplated in clause (c)

to the proviso of Section 138 of the Act. Of course such reckoning would be without

prejudice to the right of the drawer of the cheque to show that he had no knowledge

that the notice was brought to his address. In the present case the accused did not

even attempt to discharge the burden to rebut the aforesaid presumption.”

(emphasis supplied)

21. In D. Vinod Shivappa (supra), the issue before this Court was whether in a

case where postal endorsement shows that the notice could not be served due to

non-availability of the addressee or premises being locked, a cause of action may

nonetheless arise for prosecution under Section 138 of the Act, 1881 on the basis

of deemed service. This Court held that if every instance of non-availability were

to be treated as absence of service, the very object of the statute would be defeated,

since a dishonest drawer could conveniently evade service and thereby escape

prosecution altogether. In arriving at this conclusion, this Court expressly

approved the ratio laid down in K. Bhaskaran (supra). The relevant portion of the

judgment in D. Vinod Shivappa (supra) is reproduced hereinunder:

SLP(Crl.) No.17180 of 2025 Page 9 of 16

“17. In K. Bhaskaran v. Sankaran Vaidhyan Balan [(1999) 7 SCC 510 : 1999 SCC

(Cri) 1284] the drawee had presented a cheque issued by the drawer but the same

was dishonoured. A notice was sent by registered post but the same was returned

with the endorsement that the addressee was found absent on 3- 2-1993, 4- 2-1993

and 5- 2-1993 and intimation was served on addressee's house on 6-2-1993.

Thereafter the postal article remained unclaimed till 15-2-1993 and it was returned

to the sender with a further endorsement “unclaimed”. The complaint filed by the

drawee was dismissed on the ground of territorial jurisdiction as also on the ground

that since the notice had not been received by the drawer, there was no cause of

action for filing the complaint. On appeal, the High Court reversed the order of

acquittal. The appellant approached this Court by special leave. This Court held in

favour of the respondent on the question of territorial jurisdiction. On the question

of notice this Court considered the scheme of Section 138 of the Act by particular

reference to clauses (b) and (c) of the proviso thereof. In view of the legislative

scheme it was held, the failure on the part of the drawer to pay the amount should

be within 15 days “of the receipt” of the said notice. It was clear that the “giving

of notice” in the context was not the same as the receipt of notice. “Giving” was

the process of which the “receipt” was the accomplishment. This Court then

observed: (SCC p. 519, para 20)

“20. If a strict interpretation is given that the drawer should have actually

received the notice for the period of 15 days to start running no matter that

the payee sent the notice on the correct address, a trickster cheque drawer

would get the premium to avoid receiving the notice by different strategies

and he could escape from the legal consequences of Section 138 of the Act.

It must be borne in mind that the court should not adopt an interpretation

which helps a dishonest evader and clips an honest payee as that would

defeat the very legislative measure.”

18. This Court noticed the position well settled in law that the notice refused to be

accepted by the drawer can be presumed to have been served on him. In that case

the notice was returned as “unclaimed” and not as refused. The Court posed the

question, “Will there be any significant difference between the two so far as the

presumption of service is concerned?” Their Lordships referred to Section 27 of

the General Clauses Act and observed that the principle incorporated therein could

profitably be imported in a case where the sender had dispatched the notice by post

with the correct address written on it. Then it can be deemed to have been served

on the sendee, unless he proves that it was not really served and that he was not

responsible for such non- service. This Court dismissed the appeal preferred by the

drawer holding that where the notice is returned by the addressee as unclaimed

such date of return to the sender would be the commencing date in reckoning the

period of 15 days contemplated in clause (c) of the proviso to Section 138 of the

Act. This would be without prejudice to the right of the drawer of the cheque to

show that he had no knowledge that the notice was brought to his address. Since

the appellant did not attempt to discharge the burden to rebut the aforesaid

presumption, the appeal was dismissed by this Court. The aforesaid decision is

significant for two reasons. Firstly, it was held that the principle incorporated in

Section 27 of the General Clauses Act would apply in a case where the sender

dispatched the notice by post with the correct address written on it, but that would

SLP(Crl.) No.17180 of 2025 Page 10 of 16

be without prejudice to the right of the drawer of the cheque to show that he had

no knowledge that the notice was brought to his address.”

(emphasis supplied)

22. In C.C. Alavi Haji (supra), a three-Judge Bench of this Court was seized of

a reference made by a Division Bench concerning the question of service of notice

in terms of proviso (b) to Section 138 of the Act, 1881. The referring Division

Bench had expressed the view that in D. Vinod Shivappa (supra), this Court did

not advert to the fact that the presumption under Section 114 of the Evidence Act,

1872 is a rebuttable presumption and, therefore, it was necessary for the

complainant to aver that the addressee-drawer had deliberately avoided receipt of

the notice or had knowledge thereof, in order to invoke such presumption.

23. The three-Judge Bench, however, affirmed the view taken in D. Vinod

Shivappa (supra) and held that there is no distinction between Section 114 of the

Evidence Act, 1872 and Section 27 of the General Clauses Act, 1897 both of

which raise a presumption that service is effected when a notice is dispatched to

the correct address by registered post. Consequently, it is unnecessary for the

complainant to separately aver that the addressee deliberately avoided service.

This Court further held that once the notice is correctly addressed to the drawer of

the cheque, the mandatory requirement of statutory notice under proviso (b) to

Section 138 of the Act, 1881 stands satisfied and it is for the drawer to rebut the

presumption by demonstrating either that the notice was not sent to the correct

SLP(Crl.) No.17180 of 2025 Page 11 of 16

address or that the postal endorsement is erroneous. The relevant portion of the

judgment in C.C. Alavi Haji (supra) is reproduced hereinbelow:

“15. Insofar as the question of disclosure of necessary particulars with regard to

the issue of notice in terms of proviso (b) of Section 138 of the Act, in order to

enable the court to draw presumption or inference either under Section 27 of the

GC Act or Section 114 of the Evidence Act, is concerned, there is no material

difference between the two provisions. In our opinion, therefore, when the notice

is sent by registered post by correctly addressing the drawer of the cheque, the

mandatory requirement of issue of notice in terms of Clause (b) of proviso to

Section 138 of the Act stands complied with. It is needless to emphasise that the

complaint must contain basic facts regarding the mode and manner of the issuance

of notice to the drawer of the cheque. It is well settled that at the time of taking

cognizance of the complaint under Section 138 of the Act, the court is required to

be prima facie satisfied that a case under the said section is made out and the

aforenoted mandatory statutory procedural requirements have been complied with.

It is then for the drawer to rebut the presumption about the service of notice and

show that he had no knowledge that the notice was brought to his address or that

the address mentioned on the cover was incorrect or that the letter was never

tendered or that the report of the postman was incorrect. In our opinion, this

interpretation of the provision would effectuate the object and purpose for which

proviso to Section 138 was enacted, namely, to avoid unnecessary hardship to an

honest drawer of a cheque and to provide him an opportunity to make amends.

xxx xxx xxx xxx xxx

17. It is also to be borne in mind that the requirement of giving of notice is a clear

departure from the rule of criminal law, where there is no stipulation of giving of

a notice before filing a complaint. Any drawer who claims that he did not receive

the notice sent by post, can, within 15 days of receipt of summons from the court in

respect of the complaint under Section 138 of the Act, make payment of the cheque

amount and submit to the court that he had made payment within 15 days of receipt

of summons (by receiving a copy of complaint with the summons) and, therefore,

the complaint is liable to be rejected. A person who does not pay within 15 days of

receipt of the summons from the court along with the copy of the complaint under

Section 138 of the Act, cannot obviously contend that there was no proper service

of notice as required under Section 138, by ignoring statutory presumption to the

contrary under Section 27 of the GC Act and Section 114 of the Evidence Act. In

our view, any other interpretation of the proviso would defeat the very object of the

legislation. As observed in Bhaskaran case [(1999) 7 SCC 510 : 1999 SCC (Cri)

1284] if the “giving of notice” in the context of Clause (b) of the proviso was the

same as the “receipt of notice” a trickster cheque drawer would get the premium

to avoid receiving the notice by adopting different strategies and escape from legal

consequences of Section 138 of the Act.”

(emphasis supplied)

SLP(Crl.) No.17180 of 2025 Page 12 of 16

24. Thus, it is evident that this Court has consistently held that there exists a

rebuttable presumption of valid service of a statutory notice under Section 138 of

the Act, 1881, where such notice is dispatched by registered post to the correct

address of the drawer. Indeed, in C.C. Alavi Haji (supra), this Court categorically

held that the requirement of ‘giving of notice ’ stands complied with once the

notice is dispatched to the correct address. It is thereafter incumbent upon the

drawer to rebut the presumption by establishing either that he had no knowledge

of the notice having been brought to his address or that the notice was not sent to

the correct address or that the postal endorsement is incorrect.

JUDGMENT IN M.D. THOMAS IS PER INCURIAM

25. Subsequently, however, a Division Bench in M.D. Thomas vs. P.S. Jaleel,

(2009) 14 SCC 398 without noticing the authoritative pronouncement of the larger

three-Judge Bench in C.C. Alavi Haji (supra), set aside a conviction under Section

138 of the Act, 1881 solely on the ground that the statutory notice had been served

upon the wife of the drawer and not upon the drawer himself without examining

whether the notice was correctly addressed or whether the wife resided with the

husband-drawer.

26. In State of U.P. v. Synthetics and Chemicals Ltd., (1991) 4 SCC 139, this

Court explained that judgments rendered per incuriam constitute an exception to

the doctrine of stare decisis, since the ‘quotable in law’ has been avoided or

ignored. The expression ‘per incuriam’ denotes a decision rendered in ignorance

SLP(Crl.) No.17180 of 2025 Page 13 of 16

of a binding precedent of this Court or of a Court of coordinate or higher

jurisdiction or in disregard of the terms of a statute or a rule having the force of

law.

27. This Court is of the considered view that the judgment in M.D. Thomas

(supra) was rendered by a coordinate Bench without reference to binding

precedents of this Court on the presumption of service of notice under proviso (b)

to Section 138 of the Act, 1881 and without any meaningful finding as to whether

the wife-recipient was residing with the drawer-husband or whether the notice was

dispatched to the correct address. Moreover, the Bench in M.D. Thomas (supra)

erroneously treated the wife of the drawer as equivalent to an unrelated third party.

If the notice was indeed sent to the correct address, the presumption under Section

27 of the General Clauses Act, 1897 and Section 114 of the Evidence Act, 1872

would necessarily be attracted, irrespective of the identity of the recipient.

28. Additionally, this Court is of the view that if the judgment in M.D. Thomas

(supra) were to be treated as binding precedent, it would lead to anomalous

consequences. By virtue of the decisions in K. Bhaskaran (supra), D. Vinod

Shivappa (supra) and C.C. Alavi Haji (supra), the complainant enjoys the

presumption of valid service where the notice is dispatched to the correct address

but not delivered at all. However, under M.D. Thomas (supra), a complainant

whose notice is actually delivered but received by a family member residing at

the same address would be denied the benefit of such presumption!

SLP(Crl.) No.17180 of 2025 Page 14 of 16

29. This Court reiterates that the law requires only that the complainant

dispatch the notice to the correct address of the drawer and the presumption in his

favour cannot be defeated by circumstances beyond his control. Under Section 27

of the General Clauses Act, 1897, service is deemed to be effected, once the notice

is properly addressed and sent by registered post.

30. Consequently, this Court holds that the judgment in M.D. Thomas (supra)

is per incuriam and cannot be treated as binding precedent under Article 141 of

the Constitution. Furthermore, if allowed to stand as precedent, M.D. Thomas

(supra) would enable unscrupulous drawers to evade liability on specious pleas,

thereby frustrating the object of the statute.

PRESUMPTION OF VALID SERVICE IN THE PRESENT CASE

31. In the present case, the statutory demand notice under proviso (b) to Section

138 of the Act, 1881 was dispatched by the appellant through registered post to

the correct address of respondent No.2. This is evident from the fact that

respondent No.2 had entered appearance pursuant to summons delivered at the

same address. The Vakalatnama filed by him also bore the same address as that

mentioned in the statutory notice. Furthermore, both the appeal and revision

petitions filed by respondent No.2 contained the identical address. Significantly,

respondent No.2 never disputed the correctness of his address in his statement

under Section 313 of the Code of Criminal Procedure. It was not even his case

that his relationship with his mother was inimical or that they resided separately.

SLP(Crl.) No.17180 of 2025 Page 15 of 16

32. Therefore, once the notice was dispatched to the correct address, the

presumption in terms of the judgment in C.C. Alavi Haji (supra) arose and it was

incumbent upon the drawer/accused to establish either that the address was

incorrect or that he had no knowledge of the notice having been brought to his

address.

33. A perusal of the impugned judgment reveals that it rests upon a complete

misreading of the decision of this Court in C.C. Alavi Haji (supra). In paragraph

14 of the impugned judgment, the High Court has erroneously observed, “...In

C.C. Alavi Haji's case (supra), the Apex Court observed that if the complainant is

able to prove that the drawer of the cheque knew about the notice and deliberately

evaded service and got a false endorsement made only to defeat the process of

law, the Court shall presume service of notice...” Likewise, in paragraph 23 of the

impugned judgment, the High Court further erred in holding, “...Unless there is

evidence to show that the accused is aware of the notice sent by the complainant,

this Court cannot conclude that notice is served to the accused....”

34. Thus, the High Court in the impugned Judgment wrongly shifted the burden

from the accused-drawer to the complainant, contrary to the settled law laid down

in C.C. Alavi Haji (supra). Moreover, the High Court failed to consider the

overwhelming material on record which conclusively establishes that the notice

was delivered at the correct address of respondent No.2.

SLP(Crl.) No.17180 of 2025 Page 16 of 16

35. This Court is of the considered view that once the notice was dispatched to

the correct address of respondent No.2, the statutory requirement of ‘giving of

notice’ under proviso (b) to Section 138 of the Act, 1881 stood satisfied. Since

respondent No.2 failed to prove either that the address was incorrect or that he

was unaware of the notice being delivered to his address or that his relationship

with his mother was inimical, the presumption remained unrebutted. The High

Court erred in reversing the concurrent findings of the Trial Court solely on the

ground that the notice was not personally delivered to respondent No.2.

CONCLUSION

36. Consequently, the present appeal is allowed and the impugned judgment of

the High Court is set aside. The judgement passed by the Trial Court sentencing respondent No.2 to undergo simple imprisonment for six months and to pay a fine

of Rs.3,00,000/-, with a default stipulation of further imprisonment stands

restored.

37. Accordingly, the present appeal is disposed of. Pending application(s), if

any, stands disposed of.

………………. ……………………J.

[AHSANUDDIN AMANULLAH]

…………………J.

[MANMOHAN]

New Delhi;

September 30, 2026

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