Rajneesh Aggarwal v. Amit Jain & Another
Bench: Division Bench — 2 Judges (B.N. Agrawal & Arun Kumar JJ)
Parties
Facts of the Case
A cheque was dishonoured on multiple occasions — it was presented, dishonoured, presented again, and dishonoured again. The complainant filed multiple complaints under Section 138 NI Act — one for each presentation and dishonour. The question arose whether multiple complaints can be filed for the same cheque when it is presented and dishonoured more than once, or whether only one complaint can be filed for a given cheque.
Legal Issues Before the Court
- 1Can a payee file multiple complaints under Section 138 NI Act for the same cheque — where the cheque is presented and dishonoured on more than one occasion?
- 2Does each presentation and dishonour of the same cheque give rise to a fresh cause of action under Section 138?
- 3What is the effect of the 'once in 6 months' limitation on cheque re-presentation on the right to file a complaint?
The Judgment
The Supreme Court held that for a given cheque, only one complaint under Section 138 NI Act can be filed — multiple complaints for the same cheque (arising from multiple presentations and dishonours) are not permissible. Each cheque gives rise to at most one cause of action under Section 138. If a payee presents a cheque more than once and it is dishonoured each time, the payee has the right to file one complaint — they cannot file separate complaints for each dishonour of the same instrument. The Court further held that the limitation period for filing the complaint runs from the date of the first dishonour for which a notice was issued.
Key Principles Laid Down
ONE COMPLAINT PER CHEQUE: Only one complaint under Section 138 NI Act can be filed for a given cheque instrument. Multiple dishonours of the same cheque do not give rise to multiple independent causes of action — there is one cause of action per cheque.
NOTICE REQUIREMENT: The notice under Section 138 (demand notice) must be issued within 30 days of the dishonour. The complaint must be filed within 30 days of the drawer's failure to make payment within 15 days of receiving the notice. These timelines run from the first relevant dishonour for which notice is issued.
RE-PRESENTATION — EFFECT ON COMPLAINT: If the payee re-presents the cheque after the first dishonour, and it is again dishonoured, this does not create a fresh cause of action. The payee must elect which dishonour to base their complaint on — typically the most recent one for which a fresh notice can be issued within limitation — but cannot file parallel complaints.
POLICY — PREVENT HARASSMENT: The rule against multiple complaints for the same cheque prevents the drawer from being exposed to multiple prosecutions for the same transaction — which would amount to double jeopardy in effect.
Impact on Indian Law
Rajneesh Aggarwal (2003) is the leading authority on the rule against multiple complaints for a single cheque under Section 138 NI Act. It is applied routinely in NI Act proceedings to dismiss duplicate or successive complaints for the same cheque. Read together with Bir Singh v. Mukesh Kumar (2019) and Reshma v. Vijay (2020), it forms part of the core NI Act procedural framework.
Frequently Asked Questions
Can a payee file multiple complaints under Section 138 NI Act for the same cheque if it is dishonoured multiple times?
No. Rajneesh Aggarwal v. Amit Jain (2003) held that only one complaint can be filed per cheque under Section 138 NI Act, regardless of how many times the cheque is presented and dishonoured. Each cheque gives rise to only one cause of action. Multiple dishonours of the same instrument do not create multiple independent causes of action for separate complaints.