March 9, 2026
The dispute in Engineers India Limited v. Sanjay Piplani stems from a cheque dishonour matter involving Engineers India Limited (EIL), a public sector undertaking engaged in engineering and consultancy services. EIL initiated proceedings under Section 138 of the Negotiable Instruments Act 1881 after a cheque issued by the respondent was dishonoured.
Section 138 of the NI Act serves as a key statutory provision in India for enforcing liability arising from dishonoured cheques. It is widely used in commercial and contractual transactions where payment through a cheque fails.
In the present case, EIL filed a complaint alleging that the cheque issued by the respondent had been dishonoured and that payment was not made even after the statutory notice was served. Upon reviewing the complaint, the trial court found prima facie grounds to proceed and allowed the prosecution to continue under the statutory framework of the NI Act.
During the proceedings, the respondent raised several objections challenging the maintainability of the complaint. These objections primarily related to alleged non-compliance with certain procedural requirements and statutory conditions under the NI Act. The respondent contended that these issues went to the root of the matter and warranted dismissal of the complaint.
The trial court, however, rejected these objections and upheld the maintainability of the proceedings. Dissatisfied with this outcome, the respondent approached the Delhi High Court by filing a review petition seeking reconsideration of the earlier findings and re-examination of the procedural and legal aspects of the NI complaint.
In its recent decision, the Delhi High Court dismissed the review petition and reaffirmed that the proceedings initiated by EIL were legally and procedurally maintainable. The Court observed that once the issue of maintainability has been examined and decided, it cannot be repeatedly challenged through technical or collateral objections at the review stage, as this would impede the statutory process and prolong litigation unnecessarily.
Saraf and Partners represented the Plaintiff, Engineers India Limited, through a team led by Mr Gauhar Mirza, along with Mr Kaveesh Nair and Mr Arnav Chopra.
The defendant, Sanjay Piplani, appeared in person before the Court.
February 26, 2026
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