Can a petition u/s 138 NI Act is tainable beyond prescribed limitation

696 votes

Limitation is an important aspect for initiating proceedings u/s 138 or 141 of negotiable instruments act. You have to send a legal notice within 30 days from the date of return (dishonour) of cheque asking the noticee to pay the amount within 15 days. On expiry of fifteen days from the service of notice, you have to file a complaint before the Concerned magistrate within 1 month of the said expiry. However, it is pertinent to note that nothing precludes you from filing a separate civil suit (summary suit) for recovery of the amount due the limitation of which is 3 years from the cause of action/ date of dishonour.

Advocate Siddhant Sharma LawRato

697 votes

Whether a cheque once issued and dishonoured and later on the liability is liquidated by the defaulter (without issuing notice) can again be presented for subsequent liability? In such case, if the cheque is again dishonoured, whether the holder/drawee of the cheque can initiate legal action under NI Act against the defaulter? Whether such action is valid under law? If yes (/no), what are the relevant Supreme Court or High Court decisions.

Advocate Deepak Kumar LawRato