Query for section 138

plz provide more detail to get proper answer of your query.

“Whether payee or holder of cheque can initiate proceeding of prosecution under Section 138 of Negotiable Instrument Act, 1881 for the second time if he has not initiated any action on earlier cause of action?

yes he has the right to do so, he do have the right to explain the court about non issuance of notice for the first time bounce and the limitation part of it.. the question now is whether  the cheque  was within his validity time and whether he had issued notice to you within the time limit  of second bounce. if yes u have to contest it,

Complainant has choice to deposit it as many times during validity period.

I will advise you to immediately take the services of a lawyer !! Do not contest it yourself.

Payee can present the cheque for encashment many times but within the cheque validity period.cause of action for filing cheque bouncing complaint arises only when

a) The cheque has been presented to the bank within a period of three months from the date on which it is drawn or within the period of its validity, whichever is earlier.

(b) The payee or the holder induce course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer, of the cheque,³["within thirty days"] of the receipt of information by him from the bank regarding the return of the cheques as unpaid, and

(c) The drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

you are absolutely on the wrong track. merely because cheque returns cause of action would not arise. cause of action for filing the complaint would arise only after issuance of notice and failure to pay the amount of the cheque by the drwaer within 15 days from the date of receipt of notice. in your case it appears, he never issued notice and agian deposited the same. so i am afraid u would succeed in your plea.

regards

sathyanarayanan iyer

The law is very simple and clearly (although somewhat disputable) settled by SC. Sr# 3 by SC is disputable, but now it is settled.

1. Bounce the cheque as many times as you wish within 6 months of drawn or Validity of cheque which ever is earlier.

2. You need not give notice on every dishonor. As and when you decide to file the case, give the notice and if drawer does not make payment within 15 days of receipt of notice, file the case within next 30 days.

3. You can again get the cheque dishonored subject to Sr#1, even after sending the notice, in that case you will have to issue fresh notice.

(This is disputable because legal understanding is that once the cause of action is arose on the failure of drawer to make payment within 15 days of receipt of first notice, then it cannot be recreated by second dishonor to save on stipulated time. But Hon SC feels otherwise.)

So in this case, complainant did not send the notice on first dishonor, not fatal. Complainant got the cheque re bounced and sent the notice on second dishonor, perfectly legal. He filed the case within stipulated time, so no cause is made out for dismissal on this ground.

Pl take the services of a lawyer, do not contest it yourself, you are not aware of the legality and a very onerous task of presumption under S.139 is against you. From the question which you have asked, it is very daunting task for you to defend yourself.