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Fresh plea u/s 138 allowed when cheque is drawn as per compromise in lok adalat also dishonoured : SC

November 19, 2019[2020] 113 43 (SC)

FEMA, BANKING & INSURANCE : Where a complaint under section 138 had been filed against respondent and matter was subsequently settled before Lok Adalat, however, cheque drawn by respondent in favour of appellant as per compromise arrived before Lok Adalat also got dishonoured, this give rise to a fresh cause of action under section 138 and thus, second application under section 138 filed by appellant against respondent was to be allowed

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