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The Supreme Court of India has recently passed a judgement dated: 08.01.2019 in the matter of Sicagen India Ltd. vs Mahindra Vadineni & Ors., whereby the Apex Court held that a ‘cheque bounce’ complaint filed based on the second statutory notice issued after the re-presentation of cheques, is maintainable.

The Complainant herein had been issued three cheques from the accused,and after they were presented the same were dishonoured, the Complainant issued a notice to the accused on 31.08.2009 demanding for the repayment of the amount. The Complainant re-presented the said three cheques again, which were dishonoured once more leading  the Complainant to issue a statutory notice on 25.01.2010 and further filed a complaint under Section 138 of Negotiable Instruments Act, 1881 (the Act) based on the second notice dated 25.01.2010. The Madras High Court quashed the complaint alleging that the complaint was not maintainable as the Complainant postponed the matter and issued a second notice and filed a case under the said second notice.

The Apex court considering the case of MSR Leathers vs Palaniappan dated: 10.09.2013, set aside the impugned judgement on the Madras High Court and held that, there is nothing in the provisions of Section 138 of the Act that forbids the cheque holder to make successive presentation of the cheque and institute the complaint based on the second or successive dishonour of the cheque.

Suchit Patel

Associate

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