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Anil Agrawal (Retired)     26 April 2009

Cheque Bounce

 Delhi High Court has held:

Here is a complaint under Section 138 of the Negotiable Instrument Act filed before an ordinary Criminal Court/Magistrate. Therefore, the governing section would be Section 138 of the Negotiable Instrument Act which deals with “offence” and not “transaction” . It is held in number of cases that the cause of action for filing of the complaint arise only after the notice of dishonour of the cheque is given and payment is not made within 15 days of the receipt of the said notice. Therefore, date on which cheques were handed over would have no bearing and it is only when the cheque is presented for payment and is dishonoured and even after notice of dishonour is given and payment is not made by the drawer of the cheque within 15 days of the receipt of this notice, cause of action for filing of complaint would arise.

Is there similar judgement by Supreme Court? Though it is well settled that the date of offence in cheque bouncing case is the date when the notice period expires and not with reference to the date when the transaction took place or cheque was given by the drawer to the payee, time and again the trial courts pine for "date of transaction". 



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