S.138 NI Act | Single Complaint For Dishonour Of Multiple Cheques Issued Qua Same Transaction Maintainable: Karnataka High Court

The Karnataka High Court has held that a single complaint made under Section 138 of the Negotiable Instruments Act, is maintainable for multiple cheques issued by the respondent/accused on the same cause of action.

A single judge bench of Justice M Nagaprasanna allowed the petition filed by complainant A Adinarayana Reddy and set aside the order dismissing the complaint filed under Section 138 of the Negotiable Instruments Act, against accused S Vijayalakshmi and another.

It said “When all the cheques were issued by the husband and wife for the same cause of action and cheques were dishonoured, a common notice was issued against the accused. Such being the case, instead of filing the multiple complaints, single complaint for dishonour of multiple cheques are maintainable.”

The petitioner argued that as per section 219 of Cr.P.C, three criminal cases can be tried as one trial and for the same cause of action. The accused persons were given 5 cheques, who are the husband and wife. Therefore, filing a single complaint is 5 maintainable, instead of filing 5 complaints.

The bench relied on Supreme Court judgment in the case of Damodar S Prabhu Vs Syed Babalal where it was held, "For instance, in the same transaction pertaining to a loan taken on an installment basis to be repaid in equated monthly installments, several cheques are taken which are dated for each monthly installment and upon the dishonour of each of such cheques, different complaints are being filed in different courts which may also have jurisdiction in relation to the complaint. In light of this submission, we direct that it should be mandatory for the complainant to disclose that no other complaint has been filed in any other court in respect of the same transaction."

It thus allowed the petition and restored the complaint on the file of Magistrate.

Appearance: Advocate Sampat Anand Shetty for Petitioner

Citation No: 2024 LiveLaw (Kar) 68.

Case Title: A Adinarayana Reddy AND S Vijayalakshmi & ANR

Case No: Criminal Petition No 5909 OF 2023

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