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351. (SC) 18-05-2007

A. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- Demand Notice for payment – Mandatory in nature -- Object of – Object of the proviso is to avoid unnecessary hardship to an honest drawer -- Giving a notice to the drawer before filing complaint u/s 138 of the Act is a mandatory requirement.

(Para 6)

B. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- General Clauses Act, 1897 (10 of 1897), Section 27 -- Indian Evidence Act, 1872 (1 of 1872), Section 114 -- Demand Notice for payment – Serviced of notice -- Presumption of – Cause of action -- Where the payee dispatches the notice by registered post with correct address of the drawer of the cheque, the principle incorporated in Section 27 of the G.C. Act would be attracted -- Requirement of Clause (b) of proviso to Section 138 of the Act stands complied with and cause of action to file a complaint arises on the expiry of the period prescribed in Clause (c) of the said proviso for payment by the drawer of the cheque -- Nevertheless, it would be without prejudice to the right of the drawer to show that he had no knowledge that the notice was brought to his address.

(Para 10)

C. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- General Clauses Act, 1897 (10 of 1897), Section 27 -- Indian Evidence Act, 1872 (1 of 1872), Section 114 – Demand Notice for payment – Service of notice – Presumption of -- Pleadings – Requirement of -- Section 27 gives rise to a presumption that service of notice has been effected when it is sent to the correct address by registered post – It is not necessary to aver in the complaint u/s 138 of the Act that service of notice was evaded by the accused or that the accused had a role to play in the return of the notice unserved -- Complaint must contain basic facts regarding the mode and manner of the issuance of notice to the drawer of the cheque.

(Para 14, 15)

D. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- General Clauses Act, 1897 (10 of 1897), Section 27 -- Indian Evidence Act, 1872 (1 of 1872), Section 114 -- Demand Notice for payment – Service of notice – Presumption of – Rebuttal of -- At the time of taking cognizance of the complaint u/s 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 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.

(Para 15)

E. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 -- General Clauses Act, 1897 (10 of 1897), Section 27 -- Indian Evidence Act, 1872 (1 of 1872), Section 114 -- Demand Notice for payment – Service of notice – Presumption of – Rebuttal of – 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 u/s 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 u/s 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 G.C. Act and Section 114 of the Evidence Act.

(Para 17)

352. (P&H HC) 10-09-2004

East Punjab Urban Rent Restriction Act, 1949 (III of 1949), Section 13(2)(ii)(a) – Sub-letting – Evidence – Photographs -- Photographs Marks C and D have been amply proved by oral evidence of the landlady as well as by admissions made by the witnesses produced by the tenant – Absence of negatives and photographer may assume some importance in criminal cases -- In civil cases that too before tribunal photographs authenticated by oral evidence must be treated as sufficient proof of its genuineness.

The witnesses have also deposed that the board of Popular Cycle Store has been installed on the portion where the smaller shutter is fixed. These photographs have not been denied when the tenant-petitioner was confronted and he infact admitted that his wife and daughter were visible in the photographs. It was stated by Lakhvinder Singh, PW-3, who is son of the landlady-respondent, that he got the photographs clicked and the negatives were torn by the tenant-petitioner under threat. In the facts and circumstances, I am inclined to take the view that the photographs Marks C and D have been amply proved by oral evidence of the landlady-respondent as well as by admissions made by the witnesses produced by the tenant-petitioner. The photographer stand substantively authenticated by oral statements. Afterall the object of calling the photographer in the witness box or for insisting on the production of negatives is to ensure that no doctored photographs are passed as genuine one. The absence of negatives and photographer may assume some significance in criminal cases. However, in civil cases that too before tribunal photographs authenticated by oral evidence must be treated as sufficient proof of its genuineness. In such circumstances, both the Courts below have adopted a correct approach by rejecting the argument that no photograph could be proved in the absence of negatives and photographer.

 (Para 8)

East Punjab Urban Rent Restriction Act, 1949 (III of 1949), Section 13(2)(ii)(a) – Sub-letting – Possession -- Once the landlord has proved exclusive possession of a third party without her consent of the demised premises, then, it is the duty of the tenant to explain the nature of possession of third party.

Once the landlady has proved exclusive possession of a third party without her consent of the demised shop, then, it is the duty of the tenant to explain the nature of possession of the third party. In this regard, reliance could be placed on a judgment of the Supreme Court in the case of Rajbir Kaur versus S. Chokesiri and Company, (1989)1 SCC 19, United Bank of India versus Cooks and Kelvey Properties (P) Limited, (1994)5 SCC 9 and Bharat Sales Limited versus LIC of India, (1998)3 SCC1. If the primary fact of exclusive possession is proved by the tenant and there is no reasonable explanation tendered by the tenant-petitioner, then by operation of law, it could be assumed that there was some clandestine arrangement between the tenant and the sub tenant with regard to consideration of rent. In this regard, reliance can be placed on a judgment of the Supreme Court in the case of Kala versus Madho Parshad Vaidya, (1998) 6 SCC 573.

(Para 9)

East Punjab Urban Rent Restriction Act, 1949 (III of 1949), Section 13(2)(ii)(a) – Sub-letting – Necessary Party – The sub tenant is merely a proper party and not a necessary party -- The ejectment petition in his absence is maintainable -- Absence of a proper party would not result into any damaging effect on the ejectment petition filed by the landlady-respondent.

The argument, that the sub tenant was a necessary party, has to be rejected because more than 50 years ago, the Supreme Court has held in the case of Importers and Manufactures Limited versus Pheroze Framroze Taraporewala, AIR 1953 SC 73 that the sub tenant is merely a proper party and not a necessary party and therefore the ejectment petition in his absence is maintainable. Therefore, absence of a proper party would not result into any damaging effect on the ejectment petition filed by the landlady-respondent.

(Para 10)