Single complaint is maintainable even for multiple dishonour of cheques under Negotiable Instruments Act, 1881 when cause of action is the same.

In the matter of A Adinarayana Reddy vs S. Vijaylakshmi & Anr Criminal Petition No. 5909 of 2023 decided by the Hon’ble High Court of Karnataka on 05.02.2024

FACTS: The present Petition was filed by the Petitioner under section 482 of Code of Criminal Procedure, 1973 against the order passed by the Additional Chief Metropolitan Magistrate, Bangalore (hereinafter ACMM). The ACMM rejected the complaint filed by the Petitioner (hereinafter complainant) u/s 138 of the Negotiable instruments Act, 1881 as not maintainable, holding that the complainant has filed a single complaint for dishonour of five different cheques, therefore the complaint is not maintainable.

ISSUE: Whether a single complaint is maintainable for multiple cheques issued by the accused on the same cause of action?

OBSERVATIONS: The Hon’ble High Court of Karnataka placed reliance on the judgment of the Hon’ble Supreme Court in the case of Damodar S Prabhu vs Syed Babalal wherein the Supreme Court held that filing of multiple complaints for dishonour of multiple cheques issued by the same person causes harassment to the drawer of the cheque. The High Court further discussed the judgement of Sh.Charashni Kumar Vs.M/s. Malhotra Poultries passed by High Court of Punjab and Haryana wherein the Court held that where a single consolidated notice was issued for dishonour of multiple cheques, then a single will be maintainable for all the dishonoured cheques.

The Hon’ble High Court of Karnataka in consonance with the Supreme Court and High Court of Punjab and Haryana held that when the multiple cheques issued in question were drawn for the same cause of action, a common notice can be issued by the Complainant. Further, the Court held that a single complaint for multiple dishonoured cheques was maintainable. The High Court accordingly set aside the impugned order of the ACMM.

DJ-05-2024