Cheque bounce issue for larger bench
IN view of conflicting judgments delivered by various high courts in the country on two questions involving cheques which bounce, the Supreme Court has referred the issues to a larger bench for an authoritative pronouncement. Under Section 138 of the Negotiable Instruments Act, if a cheque is dishonoured, the payee may issue notice to the drawer to pay the amount within 15 days. If he does not receive the payment, a criminal complaint may be filed before a magistrate within one month. In some cases, the payee moves the magistrate's court even before the expiry of 15 days and without waiting for the one-month period. The question whether cognizance can be taken by the magistrate in such cases was the main issue which arose before the Supreme Court in the case, Yogendra Pratap vs Savitri Pande. The court found that there were contrary stands on this issue in the courts below.
IN view of conflicting judgments delivered by various high courts in the country on two questions involving cheques which bounce, the Supreme Court has referred the issues to a larger bench for an authoritative pronouncement. Under Section 138 of the Negotiable Instruments Act, if a cheque is dishonoured, the payee may issue notice to the drawer to pay the amount within 15 days. If he does not receive the payment, a criminal complaint may be filed before a magistrate within one month. In some cases, the payee moves the magistrate's court even before the expiry of 15 days and without waiting for the one-month period. The question whether cognizance can be taken by the magistrate in such cases was the main issue which arose before the Supreme Court in the case, Yogendra Pratap vs Savitri Pande. The court found that there were contrary stands on this issue in the courts below.
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