The effect of a notice under clause (b) of section 138 of Negotiable Instruments Act is:

In MSR Leathers v. S. Palaniappan (2012) the Supreme Court overruled Sadanandan Bhadran v. Madhavan Sunil Kumar (1998), which had held that once notice under clause (b) of section 138 of the Negotiable Instruments Act, 1881 was given and payment was not made, the payee could not found a fresh prosecution on a later presentation. The payee does not forfeit anything: the cheque can be presented again within its period of validity, and a later dishonour followed by a fresh notice and non-payment gives a fresh cause of action for prosecution. No permission of the court is needed.