Sec 138 NI Act- Absence Of Salutation Like 'Mr.', 'M/s.' While Drawing Cheque Irrelevant; Not Ground For Acquittal: Kerala High Court

The Kerala High Court recently ruled that the absence of salutation while drawing the cheque by the accused cannot be a ground for the accused to be acquitted in proceedings under Section 138 of the Negotiable Instruments Act.

Justice Gopinath P while allowing an appeal, observed: 

"The alphabets 'M/s' which is short form for 'Messrs' is normally a salutation intended to refer to a group of unincorporated persons, such as a partnership firm. The absence of such salutation while drawing the cheque by the accused cannot be a ground for the accused to be acquitted. Such a view is as good as saying that if the payee is not referred to in the cheque as ''Mr....'', the accused has to be acquitted."

The ruling came in a criminal appeal that challenged a judgment of the Judicial First Class Magistrate Court whereby a man accused of an offence punishable under Section 138 of the Negotiable Instruments Act was acquitted.

The appellant is the Managing Partner of a partnership firm called 'Lakshmi Finance'. He had registered a complaint alleging the commission of an offence under Section 138 of the Negotiable Instruments Act against the respondent.

However, the trial court acquitted the accused on the sole ground that the subject cheque was drawn in favour of 'Lakshmi Finance' and not 'M/s.Lakshmi Finance', though it is seen from the partnership deed that the name of the firm is 'M/s.Lakshmi Finance'. 

Aggrieved by the same, the appellant approached the High Court.

The Court found that the alphabets 'M/s' which is a short form for 'Messrs' is normally a salutation intended to refer to a group of unincorporated persons, such as a partnership firm.

"The absence of such salutation while drawing the cheque by the accused cannot be a ground for the accused to be acquitted. Such a view is as good as saying that if the payee is not referred to in the cheque as ''Mr........'', the accused has to be acquitted."

Accordingly, the appeal was allowed and the judgment of the trial court was set aside.

It was also added that the trial court may proceed from the stage before the pronouncement of the judgment and that the case shall be disposed of within a period of three months.

The appellant was thereby directed to appear before the Judicial First Class Magistrate Court, the trial court to issue fresh summons to the accused and proceed to dispose of the matter in accordance with the law. 

Advocate P.V Elias represented the petitioner in the matter while Public Prosecutor Renjith George appeared for the respondents. 

Case Title: R. Raveendran c. Shajajan & Anr.

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