The main legal point established in the judgment is that a fresh cause of action accrues upon each dishonour of the cheques, but the complaint must be filed within the stipulated time period as prescribed in the statute.

MOOL CHAND GARG, J.(oral)

1. In this case the respondent served a notice under Section 138 of the Negotiable Instruments Act dated 27.12.2003 regarding dishonour of two cheques bearing No. 146366 and 146367 for Rs.3,26,046/- and Rs.5,00,000/- respectively both dated 20.09.2003 drawn on State Bank of India, Saavanpur towards partial discharge of the debt by the petitioners to it which it is submitted were in discharge of their liability but both the cheques were dishonored when presented for encashment with the remarks “payment stopped”. The notice issued by the respondent reads as under:

“Sub: Notice under Section 138 of Negotiable Instruments Act read with Section 420 of Indian Penal Code. On the instructions of my client M/s Kavery Distributors Private Limited, having its office at 309, Inderjit Singh Palace, Delhi Gate Bazar, New Delhi-110002, through its office Mr. Anil Gupta, who has placed all the relevant documents and record before me, I hereby serve upon you the following legal notice.

1. That my client above named have been supplying inter alia Di-Ammonium Phosphate (DAP in short) to you from time to time. The payments were always made on account which has been duly adjusted by our client against their outstanding bills.

2. That in Course of this business transaction you have issued cheque nos. 14366 dated 20th September, 2003 for Rs.3,26,046/- and 146367 dated 20.09.2003 for Rs.5,00,000/- drawn on state Bank of Indian, Saavanpur, towards partial charge of your debt and/or liability against our client. The said cheques were presented with State Bank of Indore, Chandni Chowk, Delhi-6 in which our client had an account. The said cheques were presented for clearing and it was dishonoured by your bank with remarks “payment stopped”. Our clients Bank M/s. State Bank of Indore brought this fact to the notice of our client on 12.12.2003.

3. It is therefore, clear from the above that you have committed offence under Section 138 of Negotiable Instruments Act for which you are liable to be punished with imprisonment for a term which may extend to two years or with fine which may extend to twice the amount of the cheque or with both. The remarks by your banker shows there is not sufficient balance in your account for honouring the cheque and therefore you are also liable to be punished under Section 420 of Indian Penal Code for the offence of cheating.

4. The addressee no.1 is partnership concern addressee no.2 and 4 are its partners. I therefore under Section 141 of Negotiable Instruments act you are liable to be prosecuted for the offence under Section 138 of Negotiable Instruments Act. Addressee No.2 have an intention and motive to cheat our client and are therefore liable to be prosecuted under Section 420 of IPC for the offence of cheating.

5. The impugned cheque was presented with the banker of our client within six months from the date of cheque. The information regarding return of cheque as unpaid has been received by our client on 12.12.2003 and this notice is issued well within 30 days from the date of information received by our clients Bank.

You are therefore, called upon to pay the aforesaid amount of Rs.8,26,046/- being the cheque amount within 15 days from the receipt of this notice failing which I have definite instructions from our client to initiate appropriate criminal proceedings against you under Section 138 of Negotiable Instruments Act read with Section 420 of IPC for the offence of dishonor of cheque and cheating respectively. If any legal action is initiated against you, you will be responsible for all the cost and consequences arising therefrom. A copy of this legal notice has been retained in our office for further necessary legal action.

2. Thus, it is apparent that this notice had all the three ingredients which is essential for making it a notice under the provisions contained under Section 138(b) of the N.I. Act and furnished a cause of action to the respondent for filing