9911796707
TMI Blog2003 (12) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... ther words, can the complainant be allowed to continue the original complaint along with as many complaints as many cheques are issued and accepted by way of compromise in the original complaint. 2. Admittedly in the instant case not only the proceedings of the original complaint relating to the cheque of Rs. One core are continuing but as many as seven more complaints arising out of the cheques given by the petitioner in lieu of Rs. One core by way of agreement between the parties have been filed wherein petitioner has been summoned as accused. Admittedly, a civil decree has also been obtained by the respondent/complainant for the amount due from the petitioner to the respondent in respect of which execution proceedings are in vogue. 3. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitiate action under Section 138 of the Act in case cheques issued under this agreement are not honored without foregoing his right to continue with the original complaint. 6. In order to appreciate the aforesaid rival contentions, reproduction of Section 138 is necessary. It reads as under:- "138. Dishonour of cheque for insufficiency, etc., of funds in the account--Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act shows the cause of action pertaining to the initial cheque ceases to be available to the complainant as fresh cause of action becomes available in respect of the cheques issued pursuant to the agreement between the parties in case those cheques are dishonored. 9. By no stretch of imagination complaints under Section 138 relating to several cheques given by a party to the complainant on account of the agreement between the parties towards liability against initial cheque leading to the filing of original complaint can be allowed to go simultaneously. Reason is simple. Section 138 of the Negotiable Instruments Act specifically refers to only that cheque which is issued towards the liability drawn by a person on an account with a ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f agreement. Once the complainant agrees to accept the cheques towards the liability of the accused during the pendency of the complaint, it amounts to compounding the offence resulting in acquittal as he has with open eyes entered into the agreement and accepted the cheques. Any stipulation like clause 8 in the agreement has no legal value being against the very provision of Section 138 of the Act which makes the drawer liable for penal proceedings in respect of every such cheque which is dishonored but does not encompass the original cheque in lieu of which several cheques are issued and accepted. Every such cheque, if dishonored, shall make the drawer liable for penal proceedings as envisaged u/s 138 of the N.I. Act. 12. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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