AI Overview...
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Different Cheques – Multiple Reasons for Dishonor
Cheques can be dishonored for various reasons such as insufficient funds, account closure, or payment stoppage, and each reason can pertain to different cheques issued in a single or multiple transactions. Courts have recognized that cheques issued on different dates or for different amounts, even if related to the same transaction, can be subject to separate complaints under Section 138 of the Negotiable Instruments Act (NIA). For example, courts have affirmed that dishonor due to insufficient funds on one cheque does not preclude liability on others issued for the same transaction but dishonored for different reasons Bullydyers Integrated Solution Private Limited vs Jeyavairava Engineering Company Ltd. - Madras, M. Chandrashekar Rao VS V. Kutumba Rao - Dishonour Of Cheque. -
Multiple and Separate Complaints Permissible
The legal framework allows for separate complaints arising from different cheques, especially when these cheques differ in amount, date, or reason for dishonor. Courts have upheld the validity of filing multiple complaints even within the same transaction if each cheque's dishonor is due to distinct causes Bullydyers Integrated Solution Private Limited vs Jeyavairava Engineering Company Ltd. - Madras, IFCI Factors Ltd. VS State of Nct of Delhi - Delhi. -
Jurisdiction and Place of Dishonor
Jurisdiction for prosecuting offenses under Section 138 is generally determined by the place where the cheque is dishonored, not necessarily where the account is maintained or where the cheque was issued. RBI guidelines and judicial rulings clarify that the place of dishonor is critical for jurisdiction, and multiple complaints can be filed in different courts based on where each cheque was dishonored Boston Beverages Pvt. Ltd. VS Kingston Beverages - Delhi. -
Specific Cases and Legal Clarifications
- Cheques issued on different dates or for different amounts, even if related to the same transaction, are valid grounds for separate complaints M. Chandrashekar Rao VS V. Kutumba Rao - Dishonour Of Cheque.
- Cheques returned due to reasons like account closed or insufficient funds are valid grounds for dishonor and subsequent prosecution under Section 138 T. BHASKARAN VS M. P. MOHANDAS - Kerala, Rajesh VS Basheer - Kerala.
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The validity of complaints is maintained even if cheques are post-dated or issued in installments, provided they relate to the same transaction Suresh Chandra Goyal VS Amit Singhal - Delhi.
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Summary
The key insight is that each dishonored cheque, regardless of whether it is part of the same transaction or different, can lead to a separate complaint if dishonor reasons differ. The jurisdiction is primarily based on the place of dishonor, and courts recognize the validity of multiple complaints arising from different dishonored cheques issued for various reasons by the same or different parties.
References:
- Bullydyers Integrated Solution Private Limited vs Jeyavairava Engineering Company Ltd. - Madras, Jai Balaji Industries Ltd. VS HEG Ltd - Supreme Court, T. BHASKARAN VS M. P. MOHANDAS - Kerala, Boston Beverages Pvt. Ltd. VS Kingston Beverages - Delhi, M. Chandrashekar Rao VS V. Kutamba. Rao - Andhra Pradesh, Suresh Chandra Goyal VS Amit Singhal - Delhi, Rajesh VS Basheer - Kerala, M. Chandrashekar Rao VS V. Kutumba Rao - Dishonour Of Cheque, IFCI Factors Ltd. VS State of Nct of Delhi - Delhi, Ratilal Harmanbhai Patel VS State of Gujarat - Dishonour Of Cheque
Search Results for "Each Cheques are Returned Different Reasons by Different Bank 138 Not Lie in Single Case"
2024 0 Supreme(Mad) 2326 • India - BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
G.ILANGOVAN,
separate and distinct complaints arising from different cheque amounts are permissible under Section 138 of the Negotiable Instruments ... , separate complaints are valid due to different cheque amounts - Court also affirmed jurisdiction based on the location of the drawee ... (Paras 3-28) ... ... Facts of the case: ... The complainant alleged that cheques issued by the ... There is no bar that even in respect of the single or same cause of actio....
2025 8 Supreme 717 • India - Supreme Court
J. B. PARDIWALA, R. MAHADEVAN
transfer of complaint under Section 142A(1) to court of JMFC, Bhopal from court of MM, Kolkata – However, court of MM, Kolkata returned ... for offence under Section 138 as he is not the one who maintains account with bank – When a person maintains account with a bank ... though a person may draw a cheque on bank account of another person, it is not possible to hold such a person who draws cheque, liable ... between the service bran....
2015 0 Supreme(Ker) 1516 • India - Kerala
K.RAMAKRISHNAN
under section 139 and the applicability of the offence even if the cheque was returned for reasons such as 'account closed' or ' ... section 139, and the maintainability of the complaint based on multiple cheques issued for a single transaction. ... The court also clarified that the complaint was maintainable as the cheques were issued in respect of a single transaction. ... State of Gujarat and others, 2012 (4) KHC 826 (SC), the Hon'ble Supreme Court has held that ev....
2014 0 Supreme(Del) 2628 • India - Delhi
VED PRAKASH VAISH
of India vide circular dated 10.08.2012 - Guidelines had been issued by Reserve Bank of India with altogether different object - ... is payable at par/ multi-city cheque, will not change the character of drawee bank and would not confer territorial jurisdiction ... the place where the cheque stands dishonoured - Prosecution for the offence under Section 138 of NI Act would only lie at the place ... It is not uncommon to find complai....
2005 0 Supreme(AP) 974 • India - Andhra Pradesh
P.LAKSHMANA REDDY
other four dishnoured cheques also invalid on that ground - Cheques are different cheques bearing different dates merely because ... and executed pronotes and when demanded gave 5 post dated cheques - Cheques returned with endorsement “insufficient funds” - After ... satisfy some of cheques - Bank return only cheques for which amount not available. ... P-1 to P-4 shall fail fo....
2015 0 Supreme(Del) 803 • India - Delhi
VIPIN SANGHI
Three cheques in respect thereof were returned to the accused when the said amount of Rs. 1.50 lakhs was returned in installments ... It cannot be said that a complaint under Section 138 NI Act would not lie in respect of such a cheque, consequent upon its dishonor ... 118 AND 139 OF NI ACT - REBUTTAL - STANDARD OF PROOF - CRIMINAL APPEAL - SCOPE OF INTERFERENCE - VERY SUBSTANTIAL AND COMPELLING REASONS ... If no loan was given, but cheques....
2017 0 Supreme(Ker) 1499 • India - Kerala
ALEXANDER THOMAS
, where the bank account is closed prior to the drawal of the cheque, inasmuch as it has not reckoned the earlier judgments - Offence ... Negotiable Instruments Act 1881 - Section 138 - Dishonour of Cheque - Return of Cheque on ground of "account ... closed, payment stopped - Insufficient funds - correct legal position, to the limited extent that S.138 offence is not attracted ... 2012 (4) KHC 826 (SC)), the Hon’ble Supreme Court has held that even i....
• India - Dishonour Of Cheque
P.LAKSHMANA REDDY
As all the five cheques are of different dates for different amounts and the notice Ex. ... P-5 by the bank was not a valid dishonour for the reason of being premature, it cannot be said that the accused is not liable to ... under another cheque and, therefore, the decision of Suman Sethi’s Case (supra) is not applicable to the facts of the case. ... As the cheques are ....
2014 0 Supreme(Del) 2620 • India - Delhi
VED PRAKASH VAISH
Petitioner filed complaints under Section 138 of NI Act against respondents for dishonoured cheques. ... It is not uncommon to find complaints filed in different jurisdiction for cheques dishonoured in the same transaction and at the same place. ... However, it is to be noticed that the said guidelines had been issued by Reserve Bank of India with altogether different object. The said object is to facilitate speedy encashment of amount against cheques more particularl....
• India - Dishonour Of Cheque
J.B.PARDIWALA
any amount of money to any other person from out of his account for the discharge of his liability, is returned by the Bank as the ... nbsp;Held: It is true that the definition of “holder” and “holder in due course”, is given in two different ... of finance and discounting—Complainant paid cheque amount to applicant and presented cheque for encashment and cheque was returned ... the cheques with the complainant Bank and when the #HL....
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