LexSHRI ISHAR ALLOY STEELS LID. versus JAYASWALS NECO LTD.
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A B c D E F G SHRI ISHAR ALLOY STEELS LID. v. JAYASWALS NECO LTD. FEBRUARY22, 2001 [K.T. THOMAS, RP. SETHI AND B.N. AGRAWAL, JJ.] Negotiable Instruments Act, 1881 : Section 138 Cheque-Dishonour of-Presentation-Within period of validity-At pay- ee's or drawer's bank-Criminal liability-Cheque presented to payee's bank returned unpaid-Cheque again presented to same bank within 6 months but reached drawer's bank after 6 months from the date it was drawn-Complaint filed before magistrate-Notice issued-On Revision application, Sessions court held no offence made out as the cheque was presented after 6 months- However, High Court held that offence was made out as the cheque was presented to payee's bank within 6 months-Correctness of-Held: To attract criminal liability cheque has to be presented to drawer's bank within 6 months from the date it is drawn either personally or through collecting bank-As the cheque was not presented to drawer's bank within statutory period of6 months criminal court has no jurisdiction to issue process against accused. "A bank" and "the bank"-Distinction between-Explained Word, and Phrases : "A banker" and "the bank"-Meaning of-In the context of S. 138 of the Negotiable Instruments Act, 1881. The respondent presented a cheque issued by the appellant to the respondent's bank, which was returned unpaid. The respondent again presented the cheque to its bank within six months from the date it was drawn. But the cheque reached the drawer's bank after six months from the date it was drawn. The cheque was again returned unpaid. Thereafter, the respondent filed a complaint before the Judicial Mag- istrate under Section 138 of the Negotiable Instruments Act, 1881. The appellant filed a revision before the Sessions Court contending that no offence was made out as the cheque was presented for payment beyond H the period of six months as prescribed under proviso (a) to Section 138. 36 SHRI ISHAR ALLOY STEELS LTD. v. JAYASWALS NECO LTD. 37 r- The Sessions Court allowed the revision. The High Court allowed the A ~- respondent's revision by holding that the cheque could be presented either in the payee's bank or the drawer's bank within six months from the date it was drawn. Hence this appeal. Allowing the appeal, the Court B HELD : 1. The use of the words "a bank" and ''the bank'' in Section "' 138 of the Negotiable Instruments Act, 1881 is an indicator of the intention of the Legislature. The former is an indirect article and the latter is pre· fixed by a direct article. If the Legislature intended to have the same mean· ing for "a bank" and "the bank'', there was no cause or occasion for men- c tioning it distinctly and differently by using two different articles. It is worth noticing that the word ''banker" in Section 3 of the Actis pre-fixed by the indefinite article "a" and the word ''bank'' where the cheque is intended to be presented under Section 138 is pre-fixed by the definite article "the" . . The same Section permits a person to issue a cheque on an account main· tained by him with "a bank" and makes him liable for criminal prosecution D ifitis returned by "the bank" meaning thereby where the person issuing the cheque has an account. "The" is the word used before nouns, with a specify- ing or particularising effect as opposed to the indefinite or generalising • force of "a" or "an". It determines what particular thing is meant : that is, ~ what particular thing one has to assume to be meant. "The" is always E mentioned to denote a particular thing or a person. "The" would, therefore, , refer implicitly to a specified bank and not any bank. "The bank'' referred to in Clause (a) to the proviso to Section 138 of the Act would mean the drawer's bank on which the cheque is drawn and not all banks where the cheque is presented for collection including the bank of the payee, in whose F favour the cheque is issued. (41-D-H] > 2.1. 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 bas his account but to attract the criminal liabil· G ity of the drawer of the cheque such collecting bank is obliged to present the cheque in the drawer's or payee's bank on which the cheque is drawn -· within the period of six months from the date on which it is
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