IN THE HIGH COURT OF BOMBAY AT GOA
BHARAT P. DESHPANDE, J.
M/s Cassius Infracon Private Limited & Ors. - Petitioners
Versus
Mr. Vidhyadhar Vttam Kerkar, S/o. Late Mr. Uttam Anant Kerkar - Respondent
Criminal Writ Petition No. 27 of 2024
Decided On : 24-07-2024
Summary - Criminal Procedure - Negotiable Instruments Act - Sections 138, 143, 145 - The court emphasized the summary trial procedure under Section 143 of the Negotiable Instruments Act, highlighting the necessity for the accused to file an application under Section 145(2) for cross-examination, which was not done, leading to the dismissal of the petition.
Fact of the Case:
The petitioners challenged the Magistrate's order closing cross-examination in a Section 138 complaint, arguing it violated natural justice and denied them a fair trial.
Finding of the Court:
The court found that the petitioners failed to file an application under Section 145(2) of the Negotiable Instruments Act, which was necessary to recall the complainant for cross-examination, thus upholding the Magistrate's order.
Issues: Whether the Magistrate's order closing cross-examination was arbitrary and violated the principles of natural justice.
Ratio Decidendi: The court held that the accused must file an application under Section 145(2) to summon the complainant for cross-examination, and failure to do so justified the Magistrate's order.
Result: The petition was dismissed.
JUDGMENT :
Bharat P. Deshpande, J.
1. Rule. Rule is made returnable forthwith. Heard matter finally at the admission stage with consent.
2. The legality or otherwise of the order dated 14.8.2023 passed by the Magistrate is under challenge in the present petition.
3. Mr Karn would submit that the impugned order needs interference since it is first of all perverse and violative of principles of natural justice as no sufficient time was granted to the petitioner in the present matter and an application for recall of the order is rejected.
4. Mr Karn would submit that the action of the learned Magistrate in closing the cross examination of the complainant is clearly arbitrary and amounts to denial of an opportunity. He submits that such rejection is clearly against the settled principles of criminal jurisprudence of granting fair opportunity to the accused to decide the matter as hurriedly did in the present matter. He would then submit that at the most some cost could have been awarded to the petitioners for the purpose of allowing the order of recall.
5. Mr Karn would further submits that order dated 14.8.2023 was passed without giving any opportunity to the petitioners thereby closing cross examination of the complainant. Petitioners then filed an application for recall of the order dated 14.8.2023 which was rejected by order dated 25.9.2023. He submits that both these orders are challenged in the present petition on the ground that there is no fair trial and opportunity has been denied hurriedly though the respondent/complainant took many opportunities for the purpose of verification and also after issuing process.
6. Mr Karn would submit that complaint under Section 138 of the Negotiable Instruments Act, 1881 (“the Act” for short) is filed against the petitioners wherein process was issued and the petitioners appeared. Substance of accusation was explained and immediately on the next date, order was passed of closing of the cross examination only on the ground that petitioners/accused failed to file any application under Section 145(2) of the Act. He submits that petitioners by seeking recall of such order was supposed to file the application presuming that order will be recalled and then opportunity will be given to the petitioners to file such application. However by refusing to recall earlier orders, learned Magistrate has practically denied the opportunity to the accused to put forth his defence and to rebut the presumption under Section 139 of the Negotiable Instruments Act 1881.
7. Per contra, Mr Rao would submit that matter being a summary procedure case, is required to be conducted in a time bound manner and in fact on day to day basis. However, petitioners took several adjournments only for the purpose of appearance and furnishing sureties. He submits that when the matter was posted for substance of accusation, the same was explained to the petitioners/accused who pleaded not guilty. Learned Magistrate then placed the matter for trial, however no application was filed by the petitioners/accused seeking cross examination of the complainant, cross was closed and the matter was adjourned for recording statement under Section 313 of Code of Criminal Procedure (“Cr.P.C.” for short)
8. Mr Rao would further submit that on the next date petitioners filed an application for recall of the order dated 14.8.2023 which was rejected and rightly so since there was no application filed under Section 145(2) of the Act. He submits that in absence of such application, the question of recall of the order dated 14.8.2023 would not arise.
9. Rival contentions fall for consideration.
10. A private complaint under Section 138 of the Act is filed against the petitioners claiming that a memorandum of understanding was executed between the parties whereby the complainant agreed to purchase plot D and accordingly issued some cheques.
11. Though the initial request was there not to present the cheques, memorandum of understanding shows that part payment is
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The court reinforced that under the Negotiable Instruments Act, an accused must file a specific application to recall a witness for cross-examination, failing which the trial can proceed without such....
[The judgment establishes that an accused in a Sec. 138 N.I. Act case has an absolute right to cross-examine the complainant if a probable defense is disclosed, reinforcing the procedural safeguards ....
Section 145(2) of Act, clearly reveals that Court on receipt of application of prosecution or accused has no option but to summon and examine any person giving evidence on affidavit as to facts conta....
In proceedings under the Negotiable Instruments Act, the accused cannot provide evidence via affidavit and must request in writing to testify, adhering to strict procedural compliance.
The accused must disclose specific defense for contesting the claim of the complainant when seeking to recall and cross-examine the complainant and his witnesses.
The accused is not entitled to provide evidence via affidavit under the Negotiable Instruments Act; such a right is exclusively reserved for the complainant to ensure a fair trial.
For summoning under Section 138 of the NI Act, recording of statements under Sections 200 and 202 Cr.P.C. is not required, and the evidence of the complainant may be given by affidavit as per Section....
Affidavits can be accepted as evidence in proceedings under Section 138 of the Negotiable Instruments Act, and a Magistrate is not required to provide detailed reasons when issuing process against an....
The central legal point established in the judgment is the admissibility of the accused's evidence on affidavit in a Section 138 proceeding under the Negotiable Instruments Act, 1881, and the nature ....
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