SADANANDAN BHADRAN vs MADHAVAN SUNIL KUMAR

The Supreme Court held that under Section 138 of the Negotiable Instruments Act, 1881, a payee can initiate prosecution for dishonour of a cheque on multiple occasions, establishing that each dishonour gives rise to a fresh cause of action. The Court overruled the previous interpretation that limited prosecution to only the first dishonour, clarifying that the payee is entitled to file a complaint for each instance of dishonour within the cheque's validity period. The appeal was allowed, reversing the acquittal of the respondent.