M/S. PREM CHAND VIJAY KUMAR versus YASH PAL SINGH AND ANR.

M/S. PREM CHAND VIJAY KUMAR versus YASH PAL SINGH AND ANR.

Cause of action under Section 138 and 142 of Negotiable Instruments Act, 1881 arises only once, upon failure to pay within 15 days of receipt of first notice after dishonour of cheque; subsequent presentation and notice do not create fresh cause of action and complaint is maintainable only if filed within prescribed limitation from accrual of cause of action after first notice.

Parties
Appellant: Prem Chand Vijay Kumar; Respondent: Yashpal Singh; Respondent: Nirpal Singh
Jurisdiction
India
Judgment Date
02 May 2005
Procedural Posture
Criminal Appeal / Supreme Court Appeal From Punjab and Haryana High Court Order Quashing Complaint Proceedings
Outcome
Appeal dismissed
Legal Topics
Dishonour of Cheque, Cause of Action, Limitation for Complaint, Multiplicity of Proceedings
Negotiable Instruments Law Criminal Procedure Dishonour of Cheque Cause of Action Limitation for Complaint Multiplicity of Proceedings

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Parties

Prem Chand Vijay Kumar

Appellant

Yashpal Singh

Respondent

Nirpal Singh

Respondent

Procedural Posture

Criminal Appeal / Supreme Court Appeal From Punjab and Haryana High Court Order Quashing Complaint Proceedings

Legal Issues

  1. 1 Whether successive notices after repeated dishonour of a cheque give rise to fresh cause of action under Section 138 and 142 of Negotiable Instruments Act, 1881
  2. 2 Whether the complaint under Section 138 was maintainable when a prior notice had already been served

Ratio Decidendi

Cause of action under Section 138 and 142 of Negotiable Instruments Act, 1881 arises only once, upon failure to pay within 15 days of receipt of first notice after dishonour of cheque; subsequent presentation and notice do not create fresh cause of action and complaint is maintainable only if filed within prescribed limitation from accrual of cause of action after first notice.

Court Disposition

Appeal dismissed

Orders

  • No interference with High Court judgment; complaint proceedings quashed as requirements of Section 142 not met.