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Karnataka HC: Section 138 Complaint Filed After 15 Days Cannot Sustain Conviction

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Summary

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  • The Karnataka High Court has quashed a conviction under Section 138 of the Negotiable Instruments Act, ruling that a complaint filed before the statutory 15-day period for payment is invalid.
  • The court emphasized that the cause of action only arises after the 15 days following receipt of a demand notice, referencing Supreme Court precedents.
  • The complainant has been granted permission to file a fresh complaint within one month, with any delay condoned under Section 142(b).
  • This ruling underscores the importance of adhering to procedural timelines in cheque dishonour cases, ensuring that drawers cannot escape prosecution on technical grounds.

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