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DELHI HIGH COURT
Dalveer Bhandari, J.
United Ink & Varnish Co. Ltd. -Petitioner
versus
State & Ors. - Respondent
Crl. Misc. (M) Nos. 1432, 1569, 1206 of 2000,
1569, 1574, 1575, 1579, 1580,
1581, 1582  and 1583 of 1999
Decided on 20-10-2000
Counsel for the parties:
For the Petitioner: Mr. A.K. Singla, Mr. Anil Arora, Mr. Rajiv Awasthi, Ms Seema Gulati and Mr. Arun Aggarwal. Advocates.
For the Respondents: Mr. Pawan Baht Advocate.

Headnote:Negotiable Instruments Act, 1881 - Section 138 - Prosecution for dishonour of cheque - 11 months date given by Trial Court for recording Complainant's evidence - Petition seeking appropriate directions for trial Court for expeditious disposal of complaints - Object behind to bring provisions on statute was to restore credibility of cheques as a trustworthy substitute for cash payment - Court's procedure have to be designed to fulfil the object and intention behind incorporating said provisions Courts have failed to accomplish the object sought to be achieved Directions needed to be issued to steeling the process of adjudication of such Complaints - Courts to adopt pragmatic approach in dealing with these complaints.

       (Paras 22 to 26)

       Held: A large number of complaints are pending for a long time because of totally inadequate number of judicial officers available with the Delhi Judicial Service. The judicial officers are already over-burdened. The available infrastructure is also wholly inadequate. The Government of N.C.T. of Delhi the Ministry of Law and Justice and other concerned Authorities must appreciate the gravity of the situation and take necessary remedial steps immediately. Looking to the manner in which these complaints are presently adjudicated by the Trial Courts, it would take at least 8 to 10 years before most of these complaints are adjudicated. The entire purpose of incorporating these provisions by amendment stands totally defeated. The complainants have to indefinitely wait for years and years before their complaints are adjudicated. The Courts must adopt pragmatic approach in dealing with the cases of this nature. These cases are not only flooding the Trial Courts but a very large number of cases of this nature are filed in other Courts including the High Courts and even in the Supreme Court in Ode form or the other. Satisfactory pragmatic solution puts an end not only to the complaint but to ail the subsequent multiple litigation in various Courts. In most cases of this nature civil suits for recovery are also filed during the pendency of the complaints to save the limitation. It must be clearly understood that these complaints emanate from the commercial transactions. In most cases the complainants are interested in the money due from the accused and they have little interest in securing their, conviction. The accused also file multiple proceedings primarily to gain time even "when they - fully understand inherent weakness of their cases. The Courts should not become victims of this design of the accused. In Ii lost of these cases the accused hardly has any defence. Immediately after the presence of the accused is secured in the Court an option be given to him whether he she is even at that stage willing to pay the amount due and payable to the complainant. Experience reveals that in most cases accused come forward, and offer to pay the amount. This would happen when the accused knows that he cannot gain much time and the complaint filed against him can be disposed of expeditiously. In this view of the matter I deem it appropriate to give the following directions to give effect to the underlying object and intention of the said provisions of Sections 138 to 142 of the Negotiable Instruments Act in the larger public interest:

       a. The concerned Courts must examine the complainant within three months of assigning the complaint to the officer concerned.

       b. The Courts instead of examining other cited witnesses orally can accept their affidavits and on the request of the accused they can be directed to appear for cross-examination.

       c. A lot of time is wasted at the stage of summoning the accused. Looking to the prevalent state of affairs it is imperative that all possible steps to serve the summons on the accused must be taken in the first instance itself. Summons be sent by Registered A.D. Speed Post Courier and be sent even through a Court Process Server if it becomes imperative. The Courts should avoid giving long dates and make serious endeavour to secure the presence of the accused.

       d. The complaints filed by the complainants must be disposed of as early as possible and in any event within six months after the statement of the complainant has been examined by the Court. In case the concerned judicial officer is not able to dispose of the complaint within six months after the complainant has been examined then the concerned judicial officer must submit a report to the District and Sessions Judge indicating the "reasons which led to the delay in the disposal of the complaint. The report submitted by the concerned judicial officer shall be taken into consideration while evaluating the performance of the concerned judicial officer.

       e. Serious endeavour must be made to dispose of the pending complaints expeditiously to avoid multiplicity of proceedings before various Courts.

       f. Looking to the fact that a large number of complaints are pending in Delhi Courts particularly in Patiala House Courts and Tis Hazari Courts. it has become imperative to direct the concerned District and Sessions Judge and the Judge Incharge, Patiala House to assign the work pertaining to Sections 138 to 142 Negotiable Instruments Act exclusively to the six judicial officers in Patiala House Courts and four officers in Tis Hazari Courts at least for a period of two years. This arrangement be worked out within four weeks Ordinarily this Court would have assigned exclusive work to the larger number of officers particularly in Patiala House Courts but looking to the available number of judicial officers - and infrastructure it would be difficult to assign the work of these complainants to larger number of officers for the time being to exclusively handle the complaints. Since the number of complaints pending in Karkardooma Courts are only 2169, no specific directions are required. (Paras 22 to 26)

       Result: Petitions disposed of accordingly.

       

JUDGMENT

Dalveer Bhandari, J. - As common questions of law are involved in these petitions, therefore, all these petitions are disposed of by this judgment. The detailed facts of only one petition Crl. M. (M) No. 1432/2000 are recapitulated.

2. Respondent No. 2 [M/s. Howard Ink Co. (P) Ltd.] and Respondent No.3 (Shri S.R. Narula. the Managing Director of M/s. Howard Ink Co. Pvt. Ltd.) issued cheque dated 31-1-2000 in the sum of Rs. 6.75,000/- which was dishonoured on presentation. Thereafter the petitioner sent a statutory notice. Despite the notice dated 9-3-2000 when the payment was not made the petitioner (United Ink & Varnish Co. Ltd.) filed a complaint under Section 138/141 of the Negotiable

Instruments Act. On 28-4-2000, the case was adjourned by the Court for recording of the complainant's evidence for 2-42001.

3. The main grievance of the petitioner in this petition is that the entire purpose of filing the complaint is defeated, if the Trial Court gives an 11 months long date for recording of the complainant's evidence. In another matter Madan Agarwal v. Auric Agencies (P) Ltd. 1, (pertaining to a complaint under Section 138 of the Negotiable Instruments Act) the Trial Court has adjourned the case for a period of 19 months for further proceedings. This petition is filed primarily to bring to the notice of this Court that the Trial Courts are not adjudicating these complaints expeditiously and consequently the entire legislative purpose and object of incorporating these provisions stand defeated.

4. The provisions of the penalties in case of dishonour of cheque for insufficient funds were inserted in Chapter XVII comprising of Sections 138 to 142 with effect from 1-4-1989 by the Banking, Public Financial Institutions & Negotiable Instruments Laws (Amendment) Act, 1988 (66 of 1988). This Chapter has been inserted with a view to enhance the acceptability and credibility of cheques in settlement of liabilities by making the drawer liable for the penalties, in case of bouncing of cheques due to insufficiency of funds in the accounts or for the reason that it exceeds arrangement made by the drawer with adequate safeguards to prevent harassment of honest drawers.

5. Relevant provisions of the said Act are reproduced. Section 138 of the Negotiable Instruments Act: 1988 reads as under:

1. Crl. M.(M) No. 3839/2000.

"138. Dishonour of cheque for insufficiency, etc., of funds in the account.-Where any cheque drawn by a person on any account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the Bank unpaid, either because of the amount of money standing to the, credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that Bank, such person shall be deemed to have committed ail offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend the one year, or with fine which may extend to twice the amount of the cheque or with both:

Provided that nothing contained in this section shall apply unless,

(a) the cheque has been presented to the Bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;

(b) the payee or the holder in the course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within fifteen days of the receipt of information by 11im from the Bank regarding the return of the cheque as unpaid; and

(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.

Explanation: . For the purposes of this s























































































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