In Brief
Sicagen India Ltd issued three cheques to Mahindra Vadineni, all dishonoured due to insufficient funds. The complainant issued a first statutory notice on 31.08.2009 and a second on 25.01.2010, filing a criminal complaint under Section 138 of the Negotiable Instruments Act based on the second notice. The High Court quashed the complaint, holding it barred as the first notice already demanded payment. The Supreme Court held that successive cheque presentations and complaints based on subsequent dishonours are permissible under Section 138. There is no statutory bar preventing prosecution based on a second dishonour, and deferring complaint does not render it barred."
The lawyer headnote and full judgment text are available to registered users.