The “Application for Withdrawal of Complaint under Section 138 of the Negotiable Instruments Act” is a formal legal request made by a complainant to withdraw a complaint filed under Section 138 of the Negotiable Instruments Act, pertaining to dishonor of a cheque due to insufficient funds.
Section 138 of the Negotiable Instruments Act provides legal recourse against the issuance of bounced cheques, making it a punishable offense. However, circumstances might arise where the complainant wishes to withdraw the filed complaint against the issuer of the bounced cheque.
This application is typically filed before the court by the complainant, expressing the intent to withdraw the complaint previously registered under Section 138. The reasons for withdrawal may vary, such as reaching a settlement, receiving payment for the dishonored cheque, or any other mutual understanding between the parties involved.
Upon receiving the application, the court reviews the request, ensuring that the withdrawal is voluntary and not due to coercion or unlawful pressure. If the court finds the withdrawal request legitimate and in accordance with the law, it may permit the complainant to withdraw the complaint, thereby discontinuing the legal proceedings initiated under Section 138 of the Negotiable Instruments Act.