The promoter of a company borrowed a loan of ₹ 25 lakh on behalf of his company from the respondent. Later, at the request of respondent, the promoter sent a cheque from the company's account. However, the cheque was dis

According to Section 142 of the Negotiable Instruments Act, 1881 (Act), notwithstanding anything contained in the Code of Criminal Procedure, 1973,- (a) no court shall take cognizance of any offence punishable under section 138 except upon a complaint, in writing, made by the payee or, as the case may be, the holder in due course of the cheque; (b) such complaint is made within one month of the date on which the cause of action arises under clause (c) of the proviso to section 138. Section 138 of the Act provides the provisions relating to Dishonour of cheque for insufficiency, etc., of funds in the account. The proviso to this section gives the indication with respect to cause of action. It states: Provided that nothing contained in this section shall apply unless- (a) the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier; (b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice; in writing, to the drawer of the cheque, within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and (c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. Therefore, it may be said that cause of action arises under clause (c) of the proviso to section 138 i.e. when the drawer of such cheque fails to make the payment of the amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice and not on dishonour of cheque on each occasion.