bounced cheque

Please clarify if by accepting partial payment against a bounced cheque do we still have the course to file under 138 of NI act in case the balance amount is not paid

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V M DAHAKE (PROPRIETOR) 25 October 2014

Dear Sir,

In my opinion, you can proceed. 138 NIA is a criminal proceeding and not a recovery proceeding. However please mention the facts correctly in 138 NIA notice and comply all stipulations. As per the latest Supreme Court judgement, complaint has to be filed before the Magistrate in whose jurisdiction the branch of the bank which dishonored the cheque is located.