IMPORTANT POINT
Section 145 of Negotiable Instruments Act prescribes procedure for tendering evidence by affidavits.

Mohan Shantanagoudar, J.—The petitioner herein, who is the accused in C.C. No. 26750 of 2003 (P.C.R No. 323 of 2003) pending on the file of XIV Additional Chief Metropolitan Magistrate Court, Bangalore has come forward with the present revision seeking for setting aside the Order of issuing process and for quashing of the proceedings in the said criminal case.

2. The records disclose that the respondent herein lodged the complaint before the Court below alleging the offence punishable under Section 138 of the Negotiable Instruments Act (hereinafter referred to as “Act” for short) against petitioner. By the Order dated 15.3.2003, the Court below Ordered to issue of process against the Petitioner for the said offence.

3. The main point canvassed by learned Counsel for petitioner is that the Court below has gravely erred in issuing process against the petitioner without recording the sworn statement of the complainant; and that the Court below has, on the basis of the averments made in the affidavit filed by the complainant has issued process. According to the learned Counsel for the petitioner, the recording of sworn statement cannot be dispensed with, as the same is mandatory under the provisions of Section 200 of the Code of Criminal Procedure. In other words, the affidavit of the complainant cannot substitute the mandatory requirement of the sworn statement of the complainant prior to issuing of process. On the said ground, the learned Counsel for the petitioner prays for quashing of the entire proceedings against the petitioner.

4. Having regard to the fact that the existing provisions in the “Act”, namely, Sections 138 to 142 have been found deficient in adjudicating the matters relating dishonour of cheques and as the Courts are unable to dispose of such cases expeditiously, the Legislature thought it fit to further amend the “Act” by inserting Sections 143 to 147. The objects and reasons for introduction of Sections 143 to 147 are as under :

“The existing provisions in the Negotiable Instruments Act, 1881, namely, Sections 138 to 142 in Chapter XVII have been found deficient in dealing with dishonour of cheques. Not only the punishment provided in the Act has provided to be inadequate, the procedure prescribed for the Courts to deal with such matters has been found to be cumbersome. The Courts are unable to dispose of such cases expeditiously in a time bound manner in view of the procedure contained in the Act.

Keeping in view the recom-mendation of the Standing Committee on Finance and other representations, it has been decided to bring out, inter alia, the following amendments in the Negotiable Instruments Act, 1881, namely :-

(i)to increase the punishment as prescribed under the Act from one year to two years;

(ii) to increase the period for issue of notice by the payee to the drawer from 15 days to 30 days;

(iii) to provide discretion to the Court to waive the period of one month, which has been prescribed for taking cognizance of the case under the Act;

(iv)to prescribe procedure for dispensing with preliminary evidence of the complainant;

(v) to prescribe procedure for serving of summons to the accused or witness by the Court through speed post or empanelled private couriers;

(vi)to provide for summary trial of the cases under the Act with a view to speeding up disposal of cases;

(vii)to make the offence under the Act compoundable;

(viii)to exempt those directors from prosecution under Section 141 of the Act who are nominated as directors of a company by virtue of their holding any office or emp-loyment in the Central Government or State Gov-ernment, as the case may be;

(ix) to provide that the Magistrate trying an offence shall have power to pass sentence of imprisonment for a term exceeding one year and amount of fine exceeding five thousand rupees ;

(x) to make the Information Technology Act, 2000 appli-cable to the Negotiable Instruments Act, 1881, in relation to electronic cheques and truncated cheques