1999 (10) TMI 762 - HC - Indian Laws

Appeal Dismissed for Premature Filing in Dishonored Cheque Case

Harpreet Hosiery Rehari Versus Nitu Mahajan

Harpreet Hosiery Rehari Versus Nitu Mahajan - TMI Issues:Appeal against judgment dismissing complaint under Section 138 of Negotiable Instruments Act and 420, RPC.Analysis:1. The appellant alleged that the respondent issued six cheques for goods purchase, which were dishonored, claiming it was due to respondent's dishonest intention as he had no bank account. Appellant issued multiple notices, with the last on 25-4-92, following dishonor on 20-4-92, and filed the complaint on 9-5-92.2. The trial court issued notice to respondent after preliminary evidence. Respondent admitted issuing and dishonoring the cheques but claimed cash payments were made. The law requires notice to be issued within 15 days of dishonor, allowing the drawer 15 more days for payment before legal action.3. The judgment deliberated on whether each dishonor of a cheque gives a fresh cause of action. Referring to relevant case law, it was concluded that on each dishonor, a fresh right accrues to the payee, enabling repeated presentations until notice is issued, forfeiting the right for legal action.4. The appellant argued that each dishonor created an independent cause of action, but this was rejected based on Supreme Court precedents. The complaint was deemed premature as it was filed on the 14th day after the last dishonor, not allowing the mandated 15-day period for payment.5. The judgment found no merit in the appeal and dismissed it, emphasizing the importance of adhering to legal timelines and procedures under the Negotiable Instruments Act for initiating legal action in cases of dishonored cheques.