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2023 Supreme(Bom) 270

IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH
G.A. SANAP, J.
Harikisan Vithaldasji Chandak & Ors. - Applicants
Versus
Syed Mazaruddin Syed Shabuddin (Since dead, through his Lrs) & Ors. - Non-applicants
Criminal Application (APL) No. 682 of 2013
Decided On : 28-04-2023

Advocates Appeared:
For the Applicants : Mr. M.M. Agnihotri.
For the Non-applicants : Mr. R.J. Mirza.

Headnote:

Negotiable Instruments Act, 1881 - Section 138 - Code of Criminal Procedure, 1973 - Section 482 - Seeking Amendment - Branch Wardha - Cheque Dishonoured - Cognizance offence - Encashment - Vicariously liable - Whether application for amendment of criminal complaint can be made and allowed by Court - Held, Court conclude that Magistrate has granted amendment without considering basic legal flaw in complaint Legal flaw in complaint as stated is not a curable infirmity or defect - This defect cannot be allowed to be cured or rectified by granting amendment - Grant of amendment would relate back to date of dishonour of cheque - Notice was not issued in this case to partnership firm - Partnership firm has not been arrayed as an accused - Even in amendment application no prayer was made to add partnership firm as an accused - In court am of view that Magistrate was not right in granting amendment - Order passed Magistrate is required to be quashed and set aside - Petition Allowed.

Judgement Key Points

Key Points: - The judgment discusses whether amendment of a complaint under Section 482 Cr.P.C. is maintainable to plead vicarious liability of partners and to add a partner as an accused in a cheque bounce case. (!) (!) - It analyzes the impact of amendments that would change the core tenor of the complaint versus curable infirmities, and the requirement of proper notice to a partnership firm as an accused. (!) (!) - It holds that the magistrate’s amendment order was not correct due to fundamental legal flaws in the complaint, including non-arraignment of the firm as an accused and lack of notice to the firm, and that such amendments cannot rectify those defects. (!) (!) - It references the principle that amendments should not prejudice the accused and should address curable infirmities, but cannot be used to substitute the essential prosecution against the principal accused (firm/partnership).

How to determine if an amendment of a criminal complaint under Section 482 Cr.P.C. is permissible when it seeks to add vicarious liability or add a firm/partnership as an accused in a cheque dishonour case?

What is the proper scope of amendment of a Section 138 NI Act complaint when the proposed amendment changes the core crux of the case or introduces a principal accused (firm/partnership) after cognizance?

What are the conditions under which a magistrate’s grant of amendment to a criminal complaint can be quashed or upheld in view of potential prejudice to the accused and foundational defects in the complaint?


JUDGMENT :

1. In this criminal application, filed under Section 482 of the Code of Criminal Procedure, 1973, challenge is to the order dated 20.04.2013 passed by the Judicial Magistrate, First Class, Darwha, whereby learned Magistrate allowed the application (Exh.68) in Cri. Complaint Case No. 579 of 2008, made by the complainants seeking amendment to the complaint filed under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as “the N.I. Act” for short).

2. The facts relevant for the decision of this application may be stated thus :

The applicants are the accused and the non-applicants are the complainants. They would be referred by their nomenclature in the complaint. The original complainant was Syed Mazaruddin. He died on 19.08.2008 during pendency of the complaint. His heirs, the present complainant nos.1 to 4, are allowed to prosecute the complaint. The deceased complainant had agreed to sell his land to the accused. The accused issued a cheque bearing No. 493370 dated 30.10.2007 for Rs.20,00,000/-, drawn on the account of the firm maintained with the Buldhana Urban Cooperative Bank Ltd., Branch Wardha. The deceased complainant presented the cheque for encashment through his bank namely Central Bank of India, Darwha. The bank informed the deceased complainant that the cheque was dishonoured on the ground that “the drawer had stopped the payment”. The deceased complainant issued notice dated 17.04.2008 to the accused. It is stated that despite receipt of the notice, the accused did not pay the amount. Therefore, the deceased complainant filed the complaint.

3. Learned Magistrate took cognizance of the offence and issued process against the accused persons. The complaint was fixed for recording of the evidence. The complainants at that time made an application at Exh.68 for amendment. The proposed amendment was set out in paragraph 2 of the application. The sum and substance of the amendment application was that the relevant facts with regard to the vicarious liability of accused nos. 1 to 3 remained to be pleaded due to oversight. It was also stated that one Partner Shri Dhiraj Champalal Chhallani was not added as a party. A prayer is made to add this Partner as an accused. It was also stated in the said application that accused nos.1 to 3 being the Partners of the firm, are responsible for the conduct of day-to-day business of the firm and as such they are vicariously liable.

4. This amendment application was opposed by the accused persons. According to them, the amendment application was not maintainable. The application was mala fide. There is no provision to entertain an application for amendment of a criminal complaint.

5. Learned Judicial Magistrate, First Class, by granting opportunity of hearing to the parties, was pleased to allow the application for amendment, holding that the amendment was of a formal nature. The application was maintainable. The proceeding under Section 138 of the N.I. Act is a quasi civil in nature. It was further held that the amendment would not cause any prejudice to the accused persons. Being aggrieved by this order, the accused have come before this Court under Section 482 of the Cr.P.C.

6. I have heard Mr. M.M. Agnihotri, learned advocate for the applicants/accused and Mr. Raheel J. Mirza, learned advocate for the non-applicants/complainants. Perused the record and proceedings.

7. Learned advocate for the accused submitted that by the proposed amendment the very core and crux of the complaint has been changed. Learned advocate pointed out that the amendment was not intended to remove any curable defect or infirmity in the complaint and as such the order granting amendment has caused severe prejudice to the accused persons. Learned advocate further submitted that before filing the complaint, notice was not issued to the partnership firm. Learned advocate submitted that therefore, there has been an inherent defect in the complaint. In order to substantiate his submissio

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