TAMEESHWAR VAISHNAV versus RAMVISHAL GUPTA

TAMEESHWAR VAISHNAV versus RAMVISHAL GUPTA

The cause of action for proceedings under Section 138 Negotiable Instruments Act, 1881 arises only once with issuance and receipt of notice after dishonour; a second notice for the same cheque does not generate a fresh cause of action; complaints filed after expiry of limitation based on second notice are not maintainable.

Parties
Appellant: Tameeshwar Vaishnav; Respondent: Ramvishal Gupta
Jurisdiction
India
Judgment Date
08 January 2010
Procedural Posture
Criminal Appeal / Final Decision on Appeals Against High Court Orders
Outcome
Appeals allowed; complaints quashed.
Legal Topics
Section 138 NI Act, Limitation for Complaint, Second Notice Under NI Act
Negotiable Instruments Law Criminal Law Section 138 NI Act Limitation for Complaint Second Notice Under NI Act

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Parties

Tameeshwar Vaishnav

Appellant

Ramvishal Gupta

Respondent

Procedural Posture

Criminal Appeal / Final Decision on Appeals Against High Court Orders

Legal Issues

  1. 1 Whether a second notice and subsequent complaint under Section 138 Negotiable Instruments Act, 1881 for the same cheque is permitted if the payee failed to act upon the first notice within the prescribed period

Ratio Decidendi

The cause of action for proceedings under Section 138 Negotiable Instruments Act, 1881 arises only once with issuance and receipt of notice after dishonour; a second notice for the same cheque does not generate a fresh cause of action; complaints filed after expiry of limitation based on second notice are not maintainable.

Court Disposition

Appeals allowed; complaints quashed.

Orders

  • Orders of learned Magistrate dated 13 July, 2006 and 17 July, 2006 taking cognizance on Criminal Complaint Nos. 339 and 399 of 2006, as well as High Court orders, are set aside