New Delhi, Jan. 12 -- The Supreme Court ruled that when multiple cheques issued in a single transaction are dishonoured, each dishonour constitutes a distinct offence under Section 138 of the NI Act, and criminal proceedings cannot be quashed merely because there are multiple cases.

A Supreme Court division bench overturned a Delhi High Court decision that had quashed cheque bounce cases on the ground that parallel proceedings for the same liability were not maintainable.

Case Background

The dispute arose from a 2016 Agreement to Sell for three commercial units, with a total consideration of Rs 1.72 crore. The agreement provided that if sale deeds were not executed by September 30, 2018, the amount would be refunded with an additional ...