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There is no embargo upon the payee to successively present
a dishonoured cheque during the period of its validity.
There
is no restriction regarding the no of times a cheque can be presented and that
every subsequent representation and dishonour gives rise to fresh cause of action
for filing complaint.
In the course of
business transactions it is not uncommon for a cheque being returned due to insufficient
funds or similar such reason and being presented again by the payee after sometime,
on his own volition or at the request of the drawer, in expectation that it would
be encashed.
For dishonour of one cheque
there can be only one offence and such offence is committed by the drawer immediately
on his failure to make the payment within 15 days of the receipt of the notice
served.
On each presentation of the cheque
and its dishonour, a fresh right and not cause of action accrues. Therefore the
payee without taking pre-emptory action in exercise of his right may, go on presenting
the cheque so as to enable him to exercise such right at any point of time during
the validity of the cheque.
Cause of
action would arise only on failure to pay after notice.
Once
a notice for payment is given a fresh cause of action will not arise if the cheque
is presented again and it is dishonoured.
This web site is designed for general information
only. The information presented at this site should not be construed to be formal
legal advice nor the formation of a lawyer/client relationship. Persons accessing
this site are encouraged to seek independent counsel for advice regarding their
individual legal issues or consult one of the experts online.
