Second / Successive Notice of Dishonour can also be basis of Prosecution under S. 138 Negotiable Instruments Act : Supreme Court
The Supreme Court in MSR Leathers Vs. S. Palaniappan has held that prosecution based upon second or successive dishonour of the cheque is also permissible so long as the same satisfies the requirements stipulated in the proviso to Section 138 of the Negotiable Instruments Act. The present case overrules Sadanandan Bhadran v. Madhavan Sunil Kumar (1998) 6 SCC 514 which laid down that cause of action under Section 138 arose only once and if the concept of successive causes of action were to be accepted the same would make the limitation under Section 142(b) otiose. In Sadanandan Bhadran v. Madhavan Sunil Kumar (1998) 6 SCC 514, this Court was dealing with a case under Section 138 of the Negotiable Instrument Act, 1881 (hereinafter referred to as ‘the Act’) in which the complainant had, after dishonour of a cheque issued in his favour, taken steps to serve upon the accused-drawer of the cheque a notice under clause (b) of proviso to...