Mardia Chemicals Ltd. Etc. Etc vs U.O.I. & Ors. Etc. Etc on 8 April, 2004
In other words, rights and
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liberties of the secured creditors who had chosen to issue notice
under Section 13 (2), are not barred from considering the matter
afresh on the basis of the objections to be submitted by the borrower
in response to the notice as provided under Sub section 3 A to
section 13 and to proceed with further steps as found to be fit and
proper after effecting the corrections/modifications, if so necessitated,
based on the objections; which otherwise will make the chance to file
objections, an empty formality; which cannot be the position anymore
after the decision in Mardia Chemicals' Case and after incorporation
of Section 3A. Since there is no specific bar under the statute, even
to issue a corrected/fresh notice under Section 13 (2),the contention
raised in this regard does not appear to be correct or sustainable and
the reliance placed on the provisions of the Negotiable Instruments
Act is wrong and misconceived. This is more so because arising of
the 'cause of action' under the Negotiable Instruments Act is
specifically dealt with, under Sections 138 and 142 of the N.I Act.
Once the cheque dishonoured, the party concerned will have to issue
a notice of dishonour to the person who issued the cheque, within 30
days from the date of dishonour, giving the latter a period of 15 days'
time to satisfy the contents of the cheque. If there is failure in this
regard, a complaint will have to be filed within the stipulated time and
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: 13 :
the cognizance is to be taken as specifically dealt with under Section
142, where it is stated that, the complaint has to be filed within one
month from the date of arising the cause of action (with power to
condone the delay brought into effect from 6th February, 2003 by
virtue of amendment vide Act 55 of 2002).