Bombay High Court Dismisses Petition Challenging Clubbing of Dishonour of Two Cheques in Single Complaint Under Section 138 of Negotiable Instruments Act, 1881 — Held That Separate Causes of Action Do Not Necessitate Separate Complaints When Cheques Are Part of Same Transaction and Presented Within Limitation.

High Court: Bombay High Court Bench: NAGPUR In Favour of Prosecution
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Case Note & Summary

The petitioner, Umakant Dattatray Chakkarwar, was being tried for dishonour of two cheques dated 21/10/2014 and 27/10/2014, each for Rs.80,000/-, issued towards discharge of a debt of Rs.1,60,000/- owed to respondent no.2, Nitin Suresh Bhoyar. The petitioner filed an application (Exh.31) before the learned Magistrate, Pusad, contending that as the cheques were of different dates and dishonoured on different dates, they gave rise to different causes of action, and therefore, two separate complaints ought to have been filed. The learned Magistrate rejected the application on 29/06/2017. The petitioner challenged this order before the Additional Sessions Judge, Pusad, by filing Criminal Revision No.14/2017, which was also dismissed on merits on 18/08/2017. The petitioner then filed the present criminal writ petition before the High Court challenging both orders. The High Court heard the counsel for the petitioner and respondent no.2, and perused the impugned orders and documents on record. The court observed that the cheques were issued towards the same debt and were presented within the period of limitation. The court held that separate causes of action do not necessarily require separate complaints; a single complaint for dishonour of multiple cheques is maintainable if the cheques are part of the same transaction. The court found no illegality or perversity in the impugned orders and dismissed the writ petition.

Headnote

A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Clubbing of Offences - Single Complaint for Multiple Cheques - The issue was whether a single complaint for dishonour of two cheques of different dates is maintainable. The court held that separate causes of action do not necessarily require separate complaints; the complaint is maintainable if the cheques are part of the same transaction and presented within limitation. (Paras 2-5)

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Issue of Consideration

Whether a single complaint under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of two cheques of different dates is maintainable when each dishonour gives rise to a separate cause of action.

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Final Decision

The High Court dismissed the writ petition, upholding the orders of the Magistrate and the Additional Sessions Judge.

Law Points

  • Section 138 of Negotiable Instruments Act
  • 1881
  • cause of action
  • clubbing of offences
  • separate complaints
  • maintainability of single complaint for multiple cheques
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Case Details

2018 LawText (BOM) (02) 157

Criminal Writ Petition No.884 of 2017

2018-02-06

S.B. Shukre, J.

Shri S.D. Dhayaskar for Petitioner, Ms. Ritu Kalia, A.P.P. for Respondent No.1, Shri S.D. Chopde for Respondent No.2

Umakant s/o Dattatray Chakkarwar

State of Maharashtra, Nitin Suresh Bhoyar

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Nature of Litigation

Criminal writ petition challenging orders rejecting application for separate complaints for dishonour of two cheques.

Remedy Sought

Petitioner sought quashing of the order of the Magistrate and the revisional order, and direction to file separate complaints.

Filing Reason

Petitioner contended that two cheques of different dates gave rise to separate causes of action, requiring separate complaints.

Previous Decisions

The learned Magistrate rejected the application on 29/06/2017; the Additional Sessions Judge dismissed the revision on 18/08/2017.

Issues

Whether a single complaint under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of two cheques of different dates is maintainable.

Submissions/Arguments

Petitioner argued that each dishonour gives rise to a separate cause of action, requiring separate complaints. Respondent no.2 argued that the cheques were part of the same transaction and a single complaint is maintainable.

Ratio Decidendi

Separate causes of action arising from dishonour of multiple cheques do not necessarily require separate complaints; a single complaint is maintainable if the cheques are part of the same transaction and presented within limitation.

Judgment Excerpts

The petitioner is being tried for dishonour of two cheques, one dated 21/10/2014 and other dated 27/10/2014, both issued for Rs.80,000/- each. The learned Magistrate, Pusad by his order passed on 29/06/2017 rejected the application. The criminal revision was also dismissed on merits on 18/08/2017 by the learned Additional Sessions Judge, Pusad.

Procedural History

The petitioner filed an application (Exh.31) before the learned Magistrate, Pusad, which was rejected on 29/06/2017. The petitioner then filed Criminal Revision No.14/2017 before the Additional Sessions Judge, Pusad, which was dismissed on 18/08/2017. The petitioner thereafter filed the present criminal writ petition before the High Court.

Acts & Sections

  • Negotiable Instruments Act, 1881: Section 138
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High Court Bombay High Court Dismisses Petition Challenging Clubbing of Dishonour of Two Cheques in Single Complaint Under Section 138 of Negotiable Instruments Act, 1881 — Held That Separate Causes of Action Do Not Necessitate Separate Complaints When Cheque...
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