A complaint for offence punishable under Section 138 of the Negotiable Instruments Act (NI Act) would be maintainable, even if a civil suit is filed for recovery of the amount, though both spring from the same cause of action, says Karnataka High Court in Lalji Kesha Vaid v Dayanand R.
The High Court relied on the Supreme Court (SC) judgment in the case of D Purushotama Reddy v K Satheesh [2008) 8 SCC 505]. In the judgement the SC held that two proceedings are maintainable: one a civil suit seeking recovery of amount and a proceeding for the offence punishable under Section 138 of the NI Act.
References
- Lalji Kesha Vaid v Dayanand R
- D Purushotama Reddy v K Satheesh [2008) 8 SCC 505]
