The “Application for Withdrawal of Case under Section 138 of the Negotiable Instruments Act” is a formal legal request made by the complainant or the plaintiff to withdraw or retract a case filed under Section 138 of the Negotiable Instruments Act, 1881. Section 138 deals with dishonor of certain cheques due to insufficient funds or other related reasons.
Such an application is typically filed when the complainant or the person who initiated the case decides to retract the legal action taken against the accused. Reasons for withdrawing the case can vary, including reaching a settlement, receiving the payment or compensation owed, reconciliation between the parties, or other mutual agreements that render the continuation of legal proceedings unnecessary.
The application for withdrawal under Section 138 NI Act must be made before the concerned court that has jurisdiction over the case. The court will assess the merits of the application, considering factors such as the consent of both parties, the nature of the case, and any existing settlements or agreements. If the court is satisfied with the reasons provided and ensures that the withdrawal is not against public interest, it may grant permission for the withdrawal of the case under Section 138 of the Negotiable Instruments Act.