1997 Supreme(Kar) 426
Karnataka High Court
S.V.Rajendra Singh - Appellant
Versus
Lahari Recording Co.Pvt.Ltd. - Respondent
Decided On : 07-31-97
CRI.PETN. : 56 of 1997
C.V.NAGESH, RAJESH CHANDRA KUMAR, YUNINI RAJESH
The court emphasized the principles of law enunciated by the Supreme Court, the requirements of Section 138 of the N. I. Act, and the validity of the complaint filed within the time limit.
Headnote:
Negotiable Instruments Act - Dishonoured Cheque - Section 138 - Summary of Acts and Sections: Section 138 of the Negotiable Instruments Act - The court discussed the principles of law enunciated by the Supreme Court in K. M. Mathews case, the requirements of Section 138 of the N. I. Act, and the representation of the cheque after dishonour. The court also referred to the decision of the Supreme Court in M/s. Electronics Trade and Technology Development Corpn. Ltd. v. M/s. Indian Technologists and Engineering (Electronics) Pvt. Ltd. and the distinction between the offence which takes place when an act or omission is committed once and for all and a continuing offence.
Fact of the Case:
The respondent filed a complaint alleging that the petitioner issued a post-dated cheque which was dishonoured. The petitioner sought to recall the order of taking cognizance of the offence, arguing that the account was closed and the complaint was not in time. The court considered the arguments and rejected the application, concluding that there was no reason to recall the earlier order and that there were sufficient materials to proceed against the petitioner.
Finding of the Court:
The court found that the Magistrate followed the principles laid down by the Supreme Court and rejected the petitioner's application. The court also discussed the requirements of Section 138 of the N. I. Act and the representation of the cheque after dishonour, ultimately dismissing the petition.
Issues: The issues included the Magistrate's compliance with the law, the requirements of Section 138 of the N. I. Act, and the representation of the cheque after dishonour.
Ratio Decidendi: The court held that the Magistrate did not flout the law laid down by the Supreme Court, and that the complaint filed by the respondent was within time and valid.
Final Decision: The petition was dismissed.
( 2 ) THE learned Magistrate after taking cognizance of the offence directed to issue process to the petitioner. The petitioner filed an application before the same Court to recall that order of taking cognizance of the offence. The learned Magistrate considering the arguments of both sides passed a detailed order rejecting the application of the petitioner. Hence the petitioner questioned that order before the learned Sessions Court and the 23rd Addl. City Civil and Sessions Judge rejected the Rev. P. in Cr. R. P. 183/1996 dt. 13-12-1996 and confirmed the order passed by the learned Magistrate. As against that order the petitioner approached this Court under S. 482, Cr. P. C.
( 3 ) HEARD the learned counsel for the petitioner who has raised 4 points in this case. They are: (1) The learned Magistrate failed to follow the principles of law enunciated by their Lordships of the Supreme Court in K. M. Mathews case. Thereby the Magistrate flouted the law laid down by the Supreme Court. (2) The endorsement of the bank was that the account was closed. Therefore, no offence was made out. (3) Even otherwise the notice was given to the respondent informing him that the account was closed and hence the complainant could not have represented the cheque to gain the second cause of action to file a complaint. On that ground, it is urged that the complaint was not in time. (4) He also further submitted that there is a conflict of decisions on this question rendered by this High Court. Therefore, the case may be referred to a larger Bench for a decision.
( 4 ) REPELLING this argument, the learned counsel for the respondent submitted that the Court below has considered the application of the petitioner on its merit and there is no flouting of the law laid down by the Supreme Court. She further contended that the complainant had represented the cheque at the request and due to the assurance of the petitioner, that he had made arrangements for due payment of the amount payable under the cheque. Further there is no conflict of decisions rendered by this Court and question of referring the matter to the Larger Bench does not arise.
( 5 ) TAKING the first point into consideration it is abundantly clear that the learned Magistrate has followed the Supreme Court judgment reported in 1992 Cr LJ 3779 : (AIR 1992 SC 2206), K. M. Mathew v. State of Kerala, wherein it is held that it is open to the accused to plead before the Magistrate that the process against him ought not to have been issued. The Magistrate may drop the proceedings if he is satisfied on reconsideration of the complaint, that there is no offence for which the accused could be tried. It is his judicial discretion. No specific provision is required for the Magistrate to drop the proceedings or rescind the process. The order issuing process is an interim order and not a judgment. It can be varied or recalled. The fact that the process has already been issued is no bar to drop the proceedings, if the complaint on the very face of it does not disclose any offence against the accused.
( 6 ) FROM this judgment it is clear that the Magistrate is empowered to reconsider the order passed by him regarding taking cognizance and directing to issue process to the accused. If he is satisfied that there is no case made out nothing prevents him from recalling that order. In this case, from the impugned order, it is abundantly clear that the learned Court has considered th