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Showing contexts for: Structural defects in Mohamad Irfan vs Velukannan on 22 December, 2016Matching Fragments
24.Moreover, an offence within Section 138 of the Negotiable Instruments Act is complete with the dishonour of cheque, but taking cognizance of the same by any Court is prohibited so long as the Complainant does not have any 'Cause of Action' to file a complaint as per clause (c) of the proviso read with Section 142 of the Negotiable Instruments Act.
25.It cannot be brushed aside that if there is a structural defect in Cheque, an offence under Section 138 of the Negotiable Instruments Act is not made out. After all, the 'Cause of Action' is therefore, the non-payment of money to the Payee within 15 days of receipt of Notice by which demand for payment of the said money was made. That demand has to be made under Clause (b) of the proviso to Section 138 of the Negotiable Instruments Act, in the considered opinion of this Court.