MSR LEATHERS vs S. PALANIAPPAN

The Supreme Court ruled that under Section 138 of the Negotiable Instruments Act, 1881, a payee can initiate prosecution for dishonour of a cheque only once, as the cause of action arises solely from the failure to pay after a notice is served. The Court clarified that accepting multiple causes of action for successive dishonours of the same cheque would render the limitation period under Section 142(b) meaningless. Consequently, the Court upheld the dismissal of the complaint, affirming that only one offence can arise from the dishonour of a single cheque.