NEERJA PAREKH Vs. AMIT ENTERPRISES

JUDGEMENT

(1.) By the present petition, the Petitioner seeks quashing of proceedings emanating from the summoning order dated 25th April, 2005 in complaint No. 336/A/11filed against the Petitioner for offences punishable under Section 138/142 of the Negotiable Instruments Act, 1881 (in short the 'NI Act').

(2.) Learned counsel for the Petitioner states that the cognizance taken by the learned Trial Court is bad in law and is liable to be set aside. The complainant has admitted that the demand notice was sent on 20th March, 2003 and thereafter again a demand notice was sent on 22nd May, 2003. Thus, the cause of action accrued only when the first demand notice sent on 20th March, 2003. It is not permissible for the payee to create another cause of action in respect of the same cheque by issuing another legal notice. Cause of action for a complaint under Section 138 N.I. Act arises only once with the issuance of notice after dishonour of cheques and received thereof by the drawer. Reliance in this regard is placed on Prem Chand Vijay Kumar vs. Yash Pal Singh & Anr., 2005 4 SCC 417, Puri International(P) Ltd & Anr. vs. Ram Lal Bansiwal & Sons, 2006 135 DLT 103 and Umesh Tandon & Ors. vs. Indian Technological Products, 2008 1 DCR 463

(3.) Per contra, learned counsel for the Respondent states that the present petition has no merit and the order summoning the Petitioner suffers from no illegality. The Respondent in order to maintain cordial relations in business with the Petitioner agreed not to proceed with the matter after issuing the first demand notice and once again presented the cheque for encashment. This cheque was again returned back for insufficiency of funds. The Petitioner was apprised of the said fact but the Petitioner did not respond to the same and thus the Respondent once again issued legal demand notice to the Petitioner. However, the Petitioner failed to pay the amount even on the second notice and thus the Complainant/Respondent within 15 days of the subsequent notice filed the complaint. Hence the present petition has no merit and is liable to be dismissed.