The Aryavarth Express
Agency(Allahabad ): In a significant clarification on the legal procedures surrounding cheque dishonour, the Allahabad High Court has established that complaints regarding the dishonour of cheques can only be recognized by a court if they are lodged within one month following the occurrence of the cause of action. This ruling was pronounced in the context of a case involving a cheque that was returned unpaid by the bank because of insufficient funds in the drawer’s account.
Justice Yogendra Kumar Srivastava dismissed the petition by Sudesh Kumar, underlining that the timing for filing a complaint under Section 138 of the Negotiable Instruments Act, 1881, is strictly defined. The Act specifies that the drawer of a cheque has a fifteen-day window to settle the cheque amount with the payee or the holder in due course after receiving a notice regarding the cheque’s dishonour.
The court meticulously explained that the conditions stipulated in Section 138 for the dishonour of a cheque to be considered an offence include: the cheque’s presentation to the bank within six months from its issue date or within the period of its validity; the issuance of a written notice by the payee or holder to the drawer within thirty days upon learning of the cheque’s return; and the failure of the drawer to make the payment within fifteen days upon receiving this notice.
This decision highlights the procedural necessity for timely legal action in cases of cheque dishonour, emphasizing the importance of adhering to the specific timelines provided by the law to ensure that justice can be effectively pursued.