S.K.D. Lakshmanan V. Sivarama Krishn & Anr- on fresh cause of action

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Index > Banking Law-Dishonour of Cheques

S.K.D. Lakshmanan V. Sivarama Krishn & Anr

1995 CRL L.J. 1384 (F.B)

Fresh Cause of Action. The payee or holder in due course is at liberty to present the cheque for payment till it is honoured within the period of six months or of its validity.

"The payee or holder in due course is at liberty to present the cheque for payment till it is honoured within the period of six months or of its validity. It is open to him to present it even after his failure to file a complaint on the basis of the first cause of action accrued to him. If the Cheque is again dishonoured, it will again be open to the payee or holder in due course to issue a notice demanding payment of the amount due as per the Cheque. If the drawer once again fails to satisfy the demand, working of the Section 138 is wide enough to permit the payee or holder in due course to claim that he had acquired a fresh cause of action and the provision would plainly enable him to establish all the ingredients of the offence against the drawer in case he files a complaint within the time allowed by Section 142 (b) of the Act."