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IN THE HIGH COURT OF KARNATAKA AT BENGALURU
K. NATARAJAN, J.
A. Adinarayana Reddy S/o Late A.P. Narayana Reddy – Petitioner
Versus
S. Vijayalakshmi W/o M. Thippanna @ Thippaiah – Respondent
Criminal Petition No. 5909 of 2023
Decided On : 05-02-2024
Section 138 of NI Act - Maintainability of Single Complaint for Multiple Cheques - Section 219 of Cr.P.C. - The court discussed the maintainability of a single complaint for the dishonour of multiple cheques under Section 138 of NI Act and the applicability of Section 219 of Cr.P.C. It referred to various judgments and held that a single complaint is maintainable for multiple cheques issued by the accused on the same cause of action, provided the complainant files an affidavit stating that no other complaint has been filed in any other court in respect of the same transaction. The court emphasized that filing multiple complaints for the same cause of action causes harassment and prejudice to the drawer of the cheque, and directed that it should be mandatory for the complainant to disclose the same. The court also cited instances where a consolidated single notice for dishonour of multiple cheques amounted to a single offence under Section 138 of NI Act, and held that a single complaint is maintainable for all the dishonoured cheques.
Fact of the Case:
The petitioner filed a petition under Section 482 of Cr.P.C. to quash the order passed by the trial court, which had rejected the complaint filed under Section 138 of NI Act for dishonour of 5 cheques, stating that a single complaint is not maintainable.
Finding of the Court:
The court found that a single complaint is maintainable for multiple cheques issued by the accused on the same cause of action, provided the complainant files an affidavit stating that no other complaint has been filed in any other court in respect of the same transaction.
Issues: The main issue was whether a single complaint is maintainable for multiple cheques issued by the accused on the same cause of action.
Ratio Decidendi: The court held that filing multiple complaints for the same cause of action causes harassment and prejudice to the drawer of the cheque. It emphasized the need for the complainant to disclose in an affidavit that no other complaint has been filed in any other court in respect of the same transaction.
Final Decision: The court allowed the criminal petition, set aside the impugned order, and restored the complaint to the file of the Magistrate, directing it to take cognizance and proceed in accordance with law.
ORDER :
1. This petition is filed by the complainant under Section 482 of Cr.P.C. for quashing the order passed by XII Additional Chief Metropolitan Magistrate, Bangalore, dated 20.04.2023 in PCR No. 12765/2020, for having rejected the complaint filed under Section 138 of NI Act, as not maintainable.
2. Heard the arguments of learned counsel for the petitioner. The respondents were not at all summoned by the trial court, hence issuing notice to respondents, is dispensed with.
3. The case of the petitioner is that the respondent Nos. 1 and 2, issued cheques for discharge of the liability and those cheques were dishonoured. Hence, after issuing legal notice, required under Section 138 of the NI Act, the complaint came to be filed against both respondents for having committed the offence punishable under Section 138 of NI Act. It is further contended that the petitioner being the complainant filed a single complaint for dishonour of 5 cheques as under:
(2) Cheque No. 447617 drawn on Canara Bank for Rs. 10,00,000/- (rupees ten lakhs) by No. 2 amongst you and returned by your Banker on 03/07/2020 with an endorsement “Dormant.”
(3) Cheque No. 048993 drawn on Axis Bank Limited for Rs. 15,00,000 (rupees fifteen lakhs) by no. 2 amongst you and returned unpaid by your Banker on 08/07/2020 with an endorsement “Account closed.”
(4) Cheque No. 447618 drawn on Canara Bank for Rs. 10,00,000/- (rupees ten lakhs) by No. 2 amongst you and returned unpaid by your Banker on 08/07/2020 with an endorsement “Account Dormant.”
(5) Cheque No. 048992 drawn on Axis Bank Limited for Rs. 10,00,000 (rupees ten lakhs) by No. 2 amongst you and returned unpaid by your Banker on 08/07/2020 with an endorsement “Account closed.”
4. The complainant filed a single complaint against both the accused for the dishonour of 5 cheques. The complainant himself was examined as PW-1 and got marked 17 documents. After hearing the arguments, the Trial Court dismissed the complaint as not maintainable for dishonour of 5 cheques, the single complaint is not maintainable, which is under challenge.
5. Learned counsel for the petitioner has contended 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 single complaint is maintainable, instead of filing 5 complaints. In support of his contention, he has relied upon the judgment of the Hon'ble Supreme Court reported in 2010 Criminal Law Journal 2860 and Delhi High Court in the case of Unique Infoways Pvt. Ltd. vs. M/s. MPS Telecom Pvt. Ltd. and Others cases.
6. Having heard the arguments, perused records, the only point that arises for the consideration is that:
7. The Hon'ble Supreme Court in the Damodar S. Prabhu vs. Syed Babalal has held “(B) Dishonour of cheque - Cheques issued in one transaction - Filing of multiple complaints - causes tremendous harassment and prejudice to drawer of the cheque.” It has held the complainant should file an affidavit stating that he has not filed any other complaint for the same cause of action. At paragraph No. 16 of the Hon'ble Supreme Court in case of in the Damodar S. Prabhu vs. Syed Babalal has held as under:
A single complaint for dishonour of multiple cheques is maintainable if a consolidated notice of demand is served, as they constitute one offence upon failure to pay.
A single complaint for the dishonor of multiple cheques issued in one transaction is maintainable under the NI Act, despite the provisions of the CrPC.
A single complaint for dishonour of multiple cheques is maintainable under Section 138 of the NI Act if they arise from a single transaction, and account blockage does not exempt liability.
Joint prosecution for multiple cheque dishonours is permissible if they arise from a single transaction under the Negotiable Instruments Act and may be tried together as per the Code of Criminal Proc....
A single complaint can be filed for multiple cheques under Section 219 of the Cr.P.C. if they relate to the same transaction, and the presumption of correctness of bank slips under Section 146 of the....
Negotiable Instrument- Dishonour of Cheque - Different cheques, may be issued for discharging the liability, arising out of one and same transaction, are separate entities and dishonour of each and e....
A single complaint is maintainable for multiple dishonoured cheques issued on the same cause of action, as established by the Supreme Court.
The court affirmed that complaints for similar offences within a 12-month period can be consolidated for trial under Section 219 of the Cr.P.C.
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