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Invalid Demand Notice Quashes NI Act Complaint
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Jharkhand High Courtcorporatecivil

Invalid Demand Notice Quashes NI Act Complaint

November 3, 2026

Jharkhand HC quashed a premature Section 138 complaint due to an invalid and defective demand notice.

In a reinforcing decision, the Jharkhand High Court quashed a criminal complaint under Section 138 of the Negotiable Instruments Act due to the invalidity of the demand notice. The notice failed to specify the amount, due date, and mode of discharge, rendering it legally insufficient.

The Court held that a demand notice under the NI Act must contain basic legal requisites: the nature of transaction, dishonoured cheque details, amount due, and a 15-day compliance window. A defect in substance—unlike a curable technicality—invalidates the entire prosecution.

This ruling aligns with the Supreme Court's interpretation in Indian Oil Corporation v. Amrit Banjare and underscores the need for precision in drafting demand notices to sustain prosecution under the Act.

Citations

  • Indian Oil Corporation v. Amrit Banjare, (2018) 8 SCC 606
Practice Areas:corporatecivil
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