Discussion
In which judgment, the Hon'ble Supreme Court laid down that a complaint based on a second or successive dishonour of cheque is maintainable, if no complaint based on an earlier dishonour of cheque followed by statutory notice issued on the basis thereof had been filed;
Answer: A
The judgment is (2013) 1 SCC 177, M.S.R. Leathers Vs. S. Palaniappan & Anr.
In MSR Leathers a three-judge bench held that there is nothing in Section 138 of the Negotiable Instruments Act that bars a prosecution based on a second or successive dishonour of the same cheque, so long as no complaint had been filed on an earlier dishonour followed by a statutory notice.
It overruled Sadanandan Bhadran v. Madhavan Sunil Kumar (1998), which had held that only one cause of action arises and a second notice on re-presentation cannot found a complaint. The other two cases did not decide this point.
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