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2023 Supreme(Cal) 826

IN THE HIGH COURT AT CALCUTTA
SHAMPA DUTT (PAUL), J.
Jhantu Mahapatra - Appellant
Versus
Niranjan Deb & Ors. – Opp. Parties
CRA 477 of 2018
Decided On : 03-08-2023

Advocates Appeared:
For the Appellant : Mr. Srinjay Sengupta, Mr. Arindam Jana, Mr. Sourav Roy, Mr. Narattam Acharyya.
For the Opposite Parties : Mr. Mani Sankar Chattopadhyay, Ms. Faria Hossain, Ms. Mausumi Sarkar.

A complaint under Section 138 of the Negotiable Instruments Act, 1881, can be amended to include the name of the company as an accused, even if the company was not originally named as an accused in the complaint.

Headnote:

NEGOTIABLE INSTRUMENTS ACT - SECTION 138 - SECTION 141 - AMENDMENT OF COMPLAINT - In a complaint filed under Section 138 of the Negotiable Instruments Act, 1881, the name of the company was not mentioned as an accused. The trial court dismissed the complaint as not maintainable. The High Court allowed the appeal and held that the complaint could be amended to include the name of the company as an accused.

Fact of the Case:

The complainant, a proprietor of a company, made payment to Delicious Agro Food Pvt. Ltd. for food products, but the company did not deliver any such items. The accused, being the director of the company, returned the money by issuing a cheque in favor of the complainant. The cheque was dishonored due to insufficient funds. The complainant issued a notice to the accused under Section 138 of the Negotiable Instruments Act, but the notice was returned unclaimed. The complainant then filed a complaint before the trial court, but the trial court dismissed the complaint as not maintainable.

Finding of the Court:

The High Court held that the complaint could be amended to include the name of the company as an accused. The court relied on the Supreme Court judgments in U.P. Pollution Control Board v. Modi Distilleries and S.R. Sukumar v. S. Sunaad Raghuram, which held that curable legal infirmities in a complaint could be cured by amendment. The court also held that the prosecution of other persons under Section 138 NI Act is permissible only when the Company is named as an accused in the complaint.

Issues: Whether a complaint under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881, was maintainable against a Director or Authorized signatory of a company, without joining the company as an accused?

Ratio Decidendi: The court held that the complaint could be amended to include the name of the company as an accused. The court relied on the Supreme Court judgments in U.P. Pollution Control Board v. Modi Distilleries and S.R. Sukumar v. S. Sunaad Raghuram, which held that curable legal infirmities in a complaint could be cured by amendment. The court also held that the prosecution of other persons under Section 138 NI Act is permissible only when the Company is named as an accused in the complaint.

Final Decision: The High Court allowed the appeal and set aside the order of the trial court. The trial court was directed to permit the complainant to amend the petition of complaint and then proceed with the case in accordance with law.

JUDGMENT :

(Shampa Dutt (Paul), J.) :

1. The present appeal has been preferred against the judgment and order dated 27.04.2018 passed by the Learned Additional Chief Judicial Magistrate, Contai, Purba Medinipur, in C.R. Case No. 116 of 2017, thereby finding the respondent nos. 1 and 2 herein not guilty of the charge for commission of an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 and acquitting them from the instant case.

2. The complainant/appellant’s case is that M/s Maa Manasha Enterprise of which appellant is the proprietor, was appointed as Super Stockiest of Delicious Agro Pvt. Ltd. for the area of East Midnapore on 31.08.2016. The appellant advanced payment in favour of the company of which the private respondents are directors for supply of goods. But no goods were delivered to the appellant. The appellant issued a letter dated 20.02.2016 addressing the private respondents calling for refund of the money advanced. Under such circumstances, to discharge their legal liability, the private respondents in the capacity of Directors of Delicious Agro Pvt. Ltd. issued an Account Payee Cheque in favour of the appellant dated 31.01.2017 bearing No. 735627 drawn on UC Bank, Jodhpur Park Branch for an amount of Rs.10,80,270/-

3. On 03.02.2017, the appellant deposited the said cheque bearing No. 735627 drawn on UC Bank, Jodhpur Park Branch for Rs.10,80,270/- with Canara Bank, Khar Branch in Account No.5822201000038, well within the validity period of the said Chqeue. But the said cheque was dishonoured due to insufficient fund and the said cheque was returned to the appellant by Canara Bank on 03.03.2017 by way of Speed Post along with an attached Returned Memo.

4. That through his learned Advocate the appellant issued a notice by way of Registered Post with Acknowledgment Due under Section 138(b) of the Negotiable Instruments Act dated 15.03.2017 upon the private respondents causing demand for payment of the cheque amount of Rs.10,80,270/- in total in lieu of the dishonoured cheque within 15 days from the date of receipt of the said notice. But the said notices were reverted to the address of the leaned Advocate of the appellant on 29.03.2017 with an endorsement “Unclaimed”.

5. In the light of non-acceptance of the notice dated 15.03.2017 by the appellant, finding no other alternative the appellant approached the Court of the Learned Additional Chief Judicial Magistrate at Contai by filing an application under Section 138 of the Negotiable Instruments Act, 1881 against the private respondents on 19.04.2017 being C.R. Case No. 116 of 2017.

6. On 17.02.2018, the private respondents moved a petition before the Learned Additional Chief Judicial Magistrate, Contai, Purba Medinipur praying for dismissal of the instant case on the ground of maintainability. The Learned Additional Chief Judicial Magistrate, Contai, Purba Medinipur, by his order dated 27.04.2018, after hearing the concerned parties in connection with the petition dated 17.02.2018, directed the instant case to be dropped thereby acquitting the private respondents on the ground of maintainability of the instant case in terms of Section 141 of the Negotiable Instruments Act.

7. Being aggrieved by and dissatisfied with the order dated 27.04.2018 passed by the Learned Additional Chief Judicial Magistrate, Contai, Purba Medinipur, in C.R. Case No. 116 of 2017, the appellant preferred Special Leave to Appeal before this Hon’ble Court being C.R.M.S.P.L. No. 60 of 2018 and His Lordship the Hon’ble Justice Shivakant Prasad on 20.08.2018 was pleased to grant leave to the appellant to prefer the present appeal.

8. Mr. Srinjay Sengupta, learned counsel for the appellant has submitted that the Learned Magistrate while passing the impugned order erred in law by being oblivious to the fact that the petition dated 17.02.2018 moved by the private respondents was per se not maintainable ab initio. Thus, by dwelling on the same and passing the impugned order instead

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