High Court Of Calcutta
P. N. Sinha, J.
MAGMA LEASING LTD. - Appellant
Versus
STATE OF WEST BENGAL - Respondent
C. R. R 956 Of 2006
Decided On : 07/06/2007
NI ACT - SECTION 145 - EVIDENCE ON AFFIDAVIT - APPLICABILITY TO PENDING CASES - RETROSPECTIVE OPERATION - Procedural law - Applicability to pending cases - Section 145 of the Negotiable Instruments Act, 1988 (NI Act) introduced by amendment in 2003, allowing evidence of complainant to be given on affidavit, is a procedural law and can be applied retrospectively to cases pending prior to its enactment.
Fact of the Case:
In a complaint case under section 138 of the NI Act, filed in 1997 and pending before the Metropolitan Magistrate, the complainant sought to file evidence-on-affidavit under section 145 of the NI Act, introduced in 2003. The Magistrate allowed the application, but on revision, the Chief Judge, City Sessions Court, set aside the order, holding that section 145 had prospective operation and could not be applied to pending cases.
Finding of the Court:
The Court held that section 145 of the NI Act is a procedural law and can be applied retrospectively to pending cases. The object of the amendment was to expedite the hearing of NI Act cases, and the section does not impose any new disabilities or obligations on the parties. The Court distinguished the case from other decisions cited by the respondent, which dealt with substantive laws or procedural laws with different consequences.
Issues: Whether section 145 of the NI Act, allowing evidence of complainant to be given on affidavit, can be applied retrospectively to cases pending prior to its enactment.
Ratio Decidendi: Procedural laws are generally retrospective in nature, while statutes imposing new obligations or duties or imposing certain rights or liabilities on a person can be prospective in nature. Section 145 of the NI Act is a procedural law and does not impose any new disabilities or obligations on the parties. The object of the amendment was to expedite the hearing of NI Act cases, and the section does not affect the right of cross-examination of the complainant by the accused.
Final Decision: The Court allowed the revisional application and directed the Metropolitan Magistrate to proceed with the trial of the complaint case and dispose of the same within six months from the date of communication of the order.
( 2 ) MR. Debasish Roy, learned Advocate for the petitioner submitted that section 145 of the NI Act was introduced by amendment in the Act and it was made effective from 6. 2. 03. The section lays down that, notwithstanding anything contained in the Code of Criminal Procedure, 1973, the evidence of the complainant may be given by him on affidavit and may, subject to all just exceptions be read in evidence in any enquiry, trial or other proceeding under the said Code. Sub-section (2) of section 145 indicates that the Court may on the application of the prosecution or the accused summon and examine any person giving evidence on affidavit as to the facts contained therein. The section 145 of the NI Act lays down procedure of giving evidence, as such, this section can be regarded as procedural law and not substantive law. As the section deals with procedure of examination and evidence of complainant, it has retrospective effect and, in respect of old cases which were pending prior to 6. 2. 03 in which complainant was not examined, the evidence of complainant may be taken on affidavit. The section 145 was introduced in order to expedite the hearing of NI Act cases as throughout India huge number of NI Act cases were pending. The object of introduction of section of the NI Act was very clear and the amendment was made for speedy disposal of NI Act cases. It is true that, unless there is any specific instruction in the amending Act, the operation becomes prospective but, in the instant matter considering the object of introduction of the section 145 of the NI Act it should be treated as retrospective.
( 3 ) MR. Roy further contended that section 145 of the NI Act in no way imposes new disabilities or obligations or imposes new duties in respect of any transaction. The provisions of section 145 of the NI Act are related to the procedural matters and rules of recording of evidence and in such circumstances the observations of the Hon'ble Supreme Court in AIR 1976 SC 1471 did not in any way bar the application of section 145 of the NI Act. The Hon'ble Apex court and this Court in several judicial pronouncements have held that the operation of procedural laws are generally retrospective in nature while statutes, which impose new obligations or duties or penalties or impose certain rights or liabilities on a person, can be prospective in nature. The learned Judge failed to appreciate the true spirit of the decision of the Hon'ble Supreme Court in air 1976 SC 1471. It is well-apparent that right of cross-examination of PW. 2 by the accused persons is in no way affected by the said evidence-on-affidavit given by the PW. 2. The lear
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