Sumit Bansal Vs Mgi Developers And Promoters (Supreme Court of India)
Supreme Court held that under Section 138 of the NI Act, a separate cause of action arises upon each dishonour of a Cheque. Thus, multiple cheques arise from one transaction will give arise to separate prosecution u/s. 138 of NI Act.
Facts- The present batch of Appeals arises out of two separate judgments dated 17.04.2025 passed by the High Court of Delhi in the petitions filed under Section 482 of the Code of Criminal Procedure, 1973 seeking quashing of a set of four complaints instituted under Section 138 read with Sections 141 and 142 of the Negotiable Instruments Act, 1881. Notably, the High Court held that the complainant could not simultaneously maintain two separate complaints in respect of the same debt or liability, merely because separate sets of cheques i.e., one issued in the name of the firm and another personally by its proprietor, had been presented and dishonoured.
Conclusion- It is well settled that under Section 138 of the NI Act, a separate cause of action arises upon each dishonour of a Cheque provided the statutory sequence of presentation, dishonour, notice, and failure to pay is complete. The fact that multiple cheques arise from one transaction will not merge them into a single cause of action. In the present case, the cheques forming the subject of the two complaints (Complaint Case No. 2823 of 2019 and Complaint Case No. 3298 of 2019) were distinct instruments drawn on different accounts, presented on different dates, dishonoured separately, and followed by independent statutory notices. The scheme of Section 138 of the NI Act does not bar prosecution in such circumstances.
