Dishonour Of Cheques: SC Enables Deferred Proceedings

On 26 September 2012, the Supreme Court of India, in a landmark judgment in MSR Leathers v. S. Palaniappan and another has enabled the holder of a dishonoured cheque to defer prosecution U/S 138 of the Negotiable Instruments Act, 1881 by instituting proceedings on the basis of successive statutory notices to the drawer of a dishonoured cheque.

October 15, 2012 / 21:32 IST

On 26 September 2012, the Supreme Court of India, in a landmark judgment in MSR Leathers v. S. Palaniappan and another has enabled the holder of a dishonoured cheque to defer prosecution under Section 138 of the Negotiable Instruments Act, 1881 by instituting proceedings on the basis of successive statutory notices to the drawer of a dishonoured cheque.

This alert by Khaitan & Co. provides a short analysis of the impact of the judgment.

first published: Oct 11, 2012 06:10 pm

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