Karnataka High Court reiterates: Cheque bounce complaint under Section 138 of NI Act maintainable even if civil suit for recovery is instituted

The bench also relied on the Apex Court judgement in the case of D. Purushotama Reddy v. K Sateesh, wherein the court held that two proceedings are maintainable and that the two would be a civil suit seeking recovery of amount and a proceeding for the offence punishable under Section 138 of the Act.

The Karnataka High Court in the case Lalji Kesha Vaid and Dayanand R observed and has held that a complaint for offence punishable under Section 138 of the Negotiable Instruments Act would be maintainable, notwithstanding the civil suit which is being filed for recovery of the money.

A single judge bench of Justice M Nagaprasanna in the case observed and has dismissed the petition filed by one Lalji Kesha Vaid.

It has been stated that, 'The complaint for the offence punishable under Section 138 of the Act would be maintainable, notwithstanding recovery proceedings which are initiated by institution of a civil Suit, though both spring from the same cause of action.