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        2024 (2) TMI 611 - HC - Indian Laws

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        Single complaint maintainable for dishonoured cheques in the same transaction with a common statutory notice. A single complaint was maintainable for dishonour of multiple cheques issued in the same transaction when they were covered by a common statutory notice. ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                        Provisions expressly mentioned in the judgment/order text.

                          Single complaint maintainable for dishonoured cheques in the same transaction with a common statutory notice.

                          A single complaint was maintainable for dishonour of multiple cheques issued in the same transaction when they were covered by a common statutory notice. The court held that prosecution under the Negotiable Instruments Act is not invalid merely because several cheques are involved, so long as the dishonour arises from the same transaction and the notice is consolidated. Since liability under Section 138 follows failure to pay after notice, separate complaints were not necessary. The order dismissing the complaint was therefore set aside.




                          Issues: Whether a single complaint is maintainable for dishonour of multiple cheques issued in the same transaction and covered by a common notice under the Negotiable Instruments Act, 1881.

                          Analysis: The complaint arose from dishonour of multiple cheques issued by the accused in the course of the same transaction. The cheques were followed by a consolidated notice, and the proceedings were challenged only on the ground that separate complaints ought to have been filed. The governing principle applied was that where dishonour complaints relate to the same transaction and the statutory notice is common, the prosecution is not rendered invalid merely because several cheques are involved. The reasoning accepted that the offence under Section 138 of the Negotiable Instruments Act, 1881, is attracted on failure to pay after notice, and that multiplicity of complaints is not necessary in such circumstances.

                          Conclusion: A single complaint for dishonour of multiple cheques issued in the same transaction was held to be maintainable, and the order dismissing the complaint was set aside.


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                          ActsIncome Tax
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