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2025 Supreme(Online)(AP) 10769
HIGH COURT OF ANDHRA PRADESH
N. HARINATH, J
M/s. Renen Vidhyut Pvt. Ltd. – Appellant
Versus
The State of Andhra Pradesh – Respondent
CRIMINAL PETITION NO: 2484 OF 2025
For the Appellants/Petitioners: Sri Pavan Kumar Annabathuni
For the Respondents: The Public Prosecutor
The cause of action under Section 138 of the NI Act arises on the cheque's dishonour date, validating the legal notice issued based on it.
Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Petitioners seek to quash proceedings in CC No. 359 of 2017 for an alleged offence under this section, concerning dishonoured cheques presented multiple times. The court finds no infirmity in the procedure of the complainant based on issued notifications regarding the dishonour of cheques. (Paras 1-6)
(B) Legal Principles - The cause of action is established upon dishonour of the cheque, and the legal notice must follow within prescribed timelines; procedural adherence is affirmed by the court. (Paras 2-4)
Facts of the case:
The respondent presented cheques on several dates and issued a legal notice following dishonour, seeking to initiate a complaint.
Findings of Court:
Legal procedure regarding cheque dishonour and initiation of complaints under Section 138 is upheld.
Issues: Whether the legal notice was properly issued based on cheque dishonour.
Ratio Decidendi: The court reiterates that the timeline for legal notices should align with the date of cheque dishonour, confirming the procedure followed by the complainant is valid.
Result: Criminal petition is dismissed.
| Table of Content |
|---|
| 1. petitioners seek to quash proceedings. (Para 1) |
| 2. conditions for initiating a complaint outlined. (Para 2 , 3) |
| 3. legal notice complies with required timeline. (Para 4) |
I CRL.P.No.2484 of 2025 THE HON’BLE SRI JUSTICE HARINATH.N CRIMINAL PETITION No.2484 OF 2025 ORDER:
1. The petitioners are seeking to quash the proceedings in C.C.
No.359 of 2017 on the file of the Court of the Additional Munsiff Magistrate, Kandukur, Prakasam District, for the alleged offence under Section 138 of the Negotiable Instruments Act, 1881 [for short, ‘N.l. Act’].
2. The learned counsel for the petitioner submits that the 2nd respondent had presented the cheque on 30.11.2015, 15.03.2016, 15.04.2016 and 15.05.2016. The learned counsel further submits that the cause of action would arise soon after the cheque was presented for clearance on the first occasion on 30.11.2015. It is submitted that the 2"'’ respondent has intimated the petitioners about the dishonour of cheque. However, presented the cheque on three other occasions and has taken the date 15.05.2016 as a cause of action and issued a legal notice on 19.05.2016. The learned counsel for the petitioners places reliance on the judgment of the Hon’ble Supreme Court in the matter of Prem Chand Vijay Kumar v. Yashpal Singh and another'’ wherein the Hon’ble Supreme Court has dealt with the ^AIRONLINE2005SC83 I CRi.P.No.2484 of 2025 issue of cause of action for initiating the complaint under Section
138 of the N.I.Act.
3. The conditions which are required to be complied by the complainant for initiating a complaint under Section 138 of the N.I.Act are as follows:
i) The complainant has to present the cheque in the bank within the validity period.
ii) A demand for payment of the cheque amount ought to be made in writing within a period of 30 days from the date of receipt of information from the bank.
iii) In the event, the drawer of the cheque fails to comply with the legal notice in making payment of the cheque amount within a period of 15 days of the receipt of the said notice.
4. It is a settled proposition of law with respect to the date of cause of action for initiating a complaint under section 138 of the N.I.Act. The cheque can be presented any number of times before its validity. The cause of action for initiation of a complaint under Section 138 of the N.I. Act would be the date on which the cheque is returned dishonoured and legal notice is issued within a period of 30 days from the date of dishonour. In the present case the cheque was returned dishonoured on four occasions and the 2"^^ respondent has issued a legal notice on 19.05.2016 by taking the last date of dishonour for the purpose of issuing legal notice.
