When does the notice period start?
The period of limitation for issuing legal notice under Section 138 ( c ) of the Negotiable Instrument Act ( NI Act) and filing complaint under Section 142 (1) (b) of the NI Act is settled in M/S. Econ Antri Ltd v M/S. Rom Industries Ltd. & Anr [2013 (3) KHC 659].
The Kerala High Court reaffirms this in Satheeshan @ shreeshan v State of Kerala & Another [ 2023 (6) KHC 514].
Exclude the date of receipt of notice
In the Econ Anti case, stated above, the Supreme Court (SC) holds that for the purpose of calculating the period of one month, which is prescribed under Section 142 (1) (b) of the act, the period has to be calculated by excluding the date on which the cause of action arose.
While counting the period of 15 days, under Section 138 ( c) of the act, to make payment, the date on which the legal notice was received has to be excluded.
Calculate from next day onwards
More precisely, while calculating time contemplated under Section 138 ( c ) of the NI Act, fifteen days’ time has to be counted from the next date of receipt of notice.
Similarly, while calculating one month’s time to lodge complaint as provided under section 142 (1) (b) of the NI Act, the date on which the cause of action arises has to be excluded and the period has to be counted from the next day onwards.
Further reading
- M/S. Econ Antri Ltd v M/S. Rom Industries Ltd. & Anr [2013 (3) KHC 659]
- Satheeshan @ shreeshan v State of Kerala & Another [ 2023 (6) KHC 514]
