Single Complaint Maintainable for Dishonour of More Than Three Cheques Under Section 138 NI Act: J&K High Court Rules

Background and Context

The Jammu & Kashmir and Ladakh High Court recently addressed a significant procedural question arising under Section 138 of the Negotiable Instruments Act: whether a single complaint can be sustained when more than three cheques have been dishonoured. The ruling arose from a petition filed by Fayaz Ahmad Rather challenging both the complaint lodged against him and the cognizance order issued by the Special Mobile Magistrate (Sub Judge), Pulwama.

The core legal debate centred on the intersection of cheque dishonour law and the procedural limitations embedded in Section 219 of the Code of Criminal Procedure — a question that has practical significance for thousands of cheque dishonour proceedings across the country.

Facts of the Case: Fayaz Ahmad Rather Vs Tariq Ahmad Wani

The Underlying Transaction

The respondent, Tariq Ahmad Wani, had entered into an agreement with the petitioner, Fayaz Ahmad Rather, for the purchase of land situated at Looswani, at a consideration of Rs. 20.00 lacs. After payment was made, the respondent discovered during verification that the said land was already mortgaged to a bank. This rendered the transaction untenable, and the respondent accordingly demanded a refund of the entire sale consideration.

Issuance and Dishonour of Cheques

To discharge the refund obligation, the petitioner issued four cheques of Rs. 5.00 lacs each, carrying the following dates:

  • 5th May, 2022
  • 10th May, 2022
  • 15th May, 2022
  • 20th May, 2022

All four cheques were deposited by the respondent with J&K Bank, Branch Office Parigam Pulwama, on 21.06.2022. Each of them was returned unpaid on account of insufficiency of funds in the petitioner's account.

Following the dishonour, the respondent served a single consolidated legal notice dated 01.07.2022 upon the petitioner, calling upon him to make payment in respect of all four dishonoured cheques within fifteen days of receipt. The petitioner failed to comply within the stipulated period. Consequently, a complaint was filed under Section 138 of the Negotiable Instruments Act.

Trial Court's Order

The Special Mobile Magistrate, after examining preliminary evidence along with the documents annexed to the complaint, formed a prima facie opinion that the offence under Section 138 of the Negotiable Instruments Act was made out against the petitioner. Accordingly, vide order dated 26.07.2022, cognizance was taken and process was issued.

The Petitioner's Challenge

The petitioner moved the High Court assailing both the complaint and the cognizance order on a single primary ground: that a unified complaint pertaining to four separate dishonoured cheques was not legally maintainable.

The petitioner's argument rested on Section 219 of the Cr. P. C., which provides that where an accused is charged with more than one offence of the same kind committed within a twelve-month period, not more than three such offences can be tried together in one trial. The petitioner therefore contended that:

  • Dishonour of each cheque constitutes a distinct and independent offence
  • Since there were four cheques, four separate complaints were necessary
  • Clubbing all four in a single complaint violated the statutory bar under Section 219 Cr. P. C.

The High Court crystallised the matter into a single determinative issue: