Single Complaint For Dishonour Of Multiple Cheques Is Maintainable When Cause Of Action Is Same: Karnataka HC
The Karnataka High Court held that a single complaint for multiple dishonoured cheques is maintainable when cause of action is same and a common notice was issued.
The Court allowed a Petition seeking to quash the order of the Trial Court dismissed the complaint on the ground that a single complaint for 5 dishonoured cheques was not maintainable.
The Bench of Justice K. Natarajan observed, “when all the cheques were issued… for the same cause of action and cheques were dishonoured, a common notice was issued against the accused. Such being the case, instead of filing the multiple complaints, single complaint for dishonour of multiple cheques are maintainable”.
Advocate Sampat Anand Shetty appeared for the Petitioner.
The Petitioner filed a petition under Section 482 of the Criminal Procedure Code, 1973 (CrPC) seeking to quash the order of the Trial Court dismissing the complaint filed under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) as not maintainable. The Petitioner argued that the respondents issued cheques to discharge a liability, which were subsequently dishonoured. After issuing a legal notice as required by Section 138 of the NI Act, a complaint was filed against both respondents for committing an offence under Section 138 of the NI Act.
The Court framed the issue: “Whether single complaint is maintainable for multiple cheques issued by the respondent/accused on the same cause of action?”
The Court referred to the Supreme Court Judgment in the case of Damodar S Prabhu v Syed Babalal [2010 AIR SCW 2929] and noted that filing multiple complaints for dishonoured cheques issued in a single transaction causes significant harassment and prejudice to the drawer of the cheque. The Court noted that the complainant should submit an affidavit confirming that no other complaint has been filed for the same cause of action.
Additionally, the Court also noted that when multiple accused commit the same offence in the course of the same transaction, a joint trial is permissible. The Bench observed, “a consolidated single notice has been issued for dishonour of multiple cheques which amounts to commission of single offence under the 138 of NI Act. Therefore, single complaint is maintainable for all the dishonoured cheques”.
The Bench reiterated that multiple cheques issued by both parties for the same cause of action were dishonoured, and a common notice was issued against them, it is appropriate to file a single complaint instead of multiple complaints.
Therefore, the Court held that the dismissal of the complaint by the trial court was unjustifiable.
Accordingly, the Court allowed the Petition and set aside the impugned order.
Cause Title: A Adinarayana Reddy v S. Vijayalakshmi
