The statutory conditions
In general terms, the document must be properly addressed, prepaid and posted by registered post. The provision then deems service at the time the letter would be delivered in the ordinary course, unless a contrary intention appears.
Connection with Section 138
The Section 138 notice is a statutory demand notice. Postal proof and the Section 27 presumption may be relevant when the drawer disputes receipt, but the precise facts and applicable judicial interpretation must be examined.
Correct address matters
Keep proof of the address used and compare it with reliable records. A wrong or incomplete address can materially affect the service analysis.
Refused or unclaimed envelopes
The endorsement and surrounding circumstances matter. Courts assess the evidence and applicable presumptions; neither side should assume the result without examining the record.
C.C. Alavi Haji v. Palapetty Muhammed
This Supreme Court decision is frequently discussed in relation to statutory notice and postal service in cheque dishonour cases. Read the judgment itself before relying on a particular proposition.
Section 27 creates a rebuttable presumption when its conditions are satisfied; it does not make every posted letter conclusively served.
PROFESSIONAL INFORMATION
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