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'Cheque Bounce' Complaint Based On Second Notice After Re-Presentation Of Cheque Maintainable

In CRIMINAL APPEAL Nos. 26-27 OF 2019, M/S. SICAGEN INDIA LTD. vs MAHINDRA VADINENI & ORS., the three cheques issued by the accused were presented by the complainant, and after they were dishonoured, a notice was issued to the accused on 31.08.2009 demanding the repayment of the amount. Thereafter, these cheques were again presented, which were dishonoured again. The complainant issued a statutory notice on 25.01.2010 and later filed the complaint under Section 138 of the Negotiable Instruments Act based on the second statutory notice.

The Madras High Court, allowed the petition filed by the accused on the ground that the complaint was not filed based on the first statutory notice dated 31.08.2009 and the complaint filed based on the second statutory notice dated 25.01.2010 is not maintainable.

The Supreme Court while referring to a judgment of the court in MSR Leathers vs. S. Palaniappan and Another, held that applying the ratio of MSR Leathers (supra) the complaint filed based on the second statutory notice is not barred and the High Court, ought not to have quashed the criminal complaint and the impugned judgment is liable to be set aside.


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