Notice by registered post – Presumption of -- Once notice is sent by registered post by correctly addressing to the drawer of the cheque, the service of notice is deemed to have been effected -- Then requirements under proviso (b) of Section 138 stands complied, if notice is sent in the prescribed manner -- However, the drawer is at liberty to rebut this presumption -- Notice sent by registered post and is returned with postal endorsement “refused” or “not available in the house” or “house locked” or “shop closed” or “addressee not in station”, due service has to be presumed.

(SC) Decided on: 01.03.2017

Notice to drawer/Company/ Directors -- Offence by Company/Directors – Requirement of law -- Notice u/s 138 is required to be given to “the drawer” -- No other person is contemplated by Section 138 as being entitled to be issued such notice -- Section 141 states that if the person committing an offence u/s 138 is a Company, every director of such Company who was in charge of and responsible to that Company for conduct of its business shall also be deemed to be guilty – Section 141 again does not lay down any requirement that in such eventuality the directors must individually be issued separate notices u/s 138 -- No notice is additionally contemplated to be given to such directors -- Opportunity to the ‘drawer’ Company is considered good enough for those who are in charge of the affairs of such Company -- If it is their case that the offence was committed without their knowledge or that they had exercised due diligence to prevent such commission, it would be a matter of defence to be considered at the appropriate stage in the trial and certainly not at the stage of notice under Section 138.

(SC) Decided on: 06.05.2015