138 NI Act Proceedings Can’t Be Invalidated Merely Because Costs For Miscellaneous Expenses Claimed Along with Cheque Amount: Orissa High Court
Case: Hemalata Mohapatra v. Bijay Kumar Pradhani
Coram: Justice Radha Krishna Pattanaik
Case No.: CRLMC No. 545 of 2022
Court Observation: “…in view of the settled legal position in K.R. Indira (supra), the irresistible conclusion is that the defect in notice cannot invalidate the proceeding when the demand is only for the cheque amount with additional claim towards the miscellaneous expenses…”
“It is not a case that the opposite party demanded an amount more than the cheque amount of Rs.14,00,000/-. Any such additional demand which is alleged by Mr. Bose, learned counsel for the petitioner relates to the cost of the proceeding with the interest on the total sum and other expenses and therefore, in the considered view of the Court, the impugned notice dated 6th November, 2020 cannot be said to be not in conformity with law and according to the provisions of Section 138 of the N.I. Act,”
“In categorical term the Apex Court in the aforesaid decision concluded that when there was specific demand in respect of the amount of the cheque and the fact that certain additional claim incidental is made in the form of expenses incurred for clearance and charges, the notice is not vitiated”
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138 NI Act Proceedings
