No Prosecution of Chairman/Director without Impleading Company as Accused – Section 138 NI Act

Bhupendra Suryawanshi Vs Sai Traders (Madhya Pradesh) The proviso to Section 138, however, is all important and stipulates three distinct conditions precedent, which must be satisfied before the dishonour of a cheque can constitute an offence and become punishable. The first condition is that the cheque ought to have been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier. The second condition is that the payee or the holder in due course of the cheque, as the case may be, ought to make a demand for ...