Cheque Bounce Complaint U/S 138 NI Act Maintainable Even If Civil Suit For Recovery Is Instituted: Karnataka High Court Reiterates

The Karnataka High Court ruled that a complaint under Section 138 of the Negotiable Instruments Act is valid even if a suit for money recovery is pending. The case involved a dispute over a dishonored cheque, where the respondent argued that the pending suit rendered the complaint invalid. The court found that the two proceedings are independent and that the complaint under Section 138 can proceed regardless of the civil suit. This ruling clarifies the legal position on parallel proceedings and ensures that the rights of creditors are protected.