Premature Section 138 complaint and accrual of cause of action referred to a larger Bench for resolution.

A complaint under Section 138 of the Negotiable Instruments Act filed before expiry of the 15-day notice period was treated as premature because the statutory cause of action had not yet accrued. The text also notes a conflict of views on whether the defect could be cured by the later expiry of the notice period and whether a fresh complaint could be filed after the one-month period under Section 142(b). Owing to this divergence in judicial approach, the issue was referred to a three-Judge Bench for authoritative resolution.

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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 filed before expiry of the 15-day period under the proviso to Section 138(c) could validly sustain cognizance under Section 142, and whether such a complaint could be filed again after the expiry of the one-month period under Section 142(b).

Analysis: The complaint was filed before the statutory cause of action had accrued, making it premature in law. The competing views of this Court and various High Courts on whether later expiry of the notice period could cure the defect were noticed. In view of the conflict, the Court found the legal position required authoritative resolution by a larger Bench.

Outcome: The questions were referred to a three-Judge Bench for decision.

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