Karnataka High Court : Day on which a Bank Informs a Cheque Holder of Dishonour Must Be Excluded

The Karnataka High Court ruled that the date a bank informs a cheque holder of dishonour must be excluded when calculating the 30-day notice period under Section 138(b) of the Negotiable Instruments Act.

This ruling arose from an appeal by B.R. Anand, who lent ₹11.7 lakh to former colleague V.R. Gisha. After Gisha’s cheque bounced in 2017, the notice was served on the 31st day. 

While the trial court acquitted her for delay, the High Court overturned the decision, applying Supreme Court precedent and imposed a ₹12 lakh fine, ₹11.7 lakh on the complainant, and ₹ 30,000 on the State.