IN THE HIGH COURT AT CALCUTTA
Ananya Bandyopadhyay, J.
Dilip Sahoo – Petitioner
Versus
The State of West Bengal & Ors. – Respondents
C.R.R. 1586 of 2011
Decided On : 13-03-2024
Negotiable Instruments Act - Quashing of proceeding - Section 138 - 200, 145 - The court discussed the provisions of Section 200 and 145 of the Code of Criminal Procedure, 1973 and their non-compliance in the issuance of process against the accused. The court also referred to the judgments in Subramanium Sethuraman v. State of Maharashtra and Expeditious Trial of Cases Under Section 138 of NI Act, 1881, In re, to highlight the limitations on the court's power to recall the process and the necessity of complying with statutory provisions.
Fact of the Case:
The petitioner sought quashing of a proceeding under Section 138 of the Negotiable Instruments Act, alleging non-compliance with statutory provisions in the issuance of process against him. The petitioner contended that the court had not taken cognizance of the offence as alleged and had proceeded without complying with the provisions of Section 200 of the Code of Criminal Procedure, 1973.
Finding of the Court:
The court found that the issuance of process without complying with the statutory provisions was not a ground for recalling the process or dismissing the complaint. The court also noted that the accused had been examined under Section 251 of the Cr.P.C. and the case was at the stage of evidence, thus rejecting the petitioner's plea for dismissal of the complaint and discharge from the case.
Issues: The issues revolved around the non-compliance of statutory provisions in the issuance of process under Section 138 of the Negotiable Instruments Act and the petitioner's plea for dismissal of the complaint and discharge from the case.
Ratio Decidendi: The court's decision was based on the limitations on the court's power to recall the process and the necessity of complying with statutory provisions, as highlighted in the judgments in Subramanium Sethuraman v. State of Maharashtra and Expeditious Trial of Cases Under Section 138 of NI Act, 1881, In re.
Final Decision: The court dismissed the criminal revisional application and directed the trial court to comply with the provisions under Section 200 and Section 204 of the Cr.P.C. and also to issue necessary orders in compliance with Section 145 of the Negotiable Instruments Act, 1881.
JUDGMENT :
Ananya Bandyopadhyay, J.
1. The instant revisional application has been filed by the petitioner for quashing of proceeding being C.R. Case No. 93/2008 under Section 138 of Negotiable Instruments Act pending in the Court of the Learned Additional Chief Judicial Magistrate, Jhargram, Paschim Medinipur.
2. Petitioner stated that the above mentioned case was initiated on the basis of one complaint filed by the opposite party no. 2 alleging inter alia that the petitioner happened to be his neighbour. The petitioner asked him to render financial assistance for running his business and on an assurance that he would be provided a good plot of land, the opposite party no. 2, handed him an amount of Rupees Five Lakhs Fifteen Thousand only out of which Rupees Thirty Thousand was repaid by the petitioner. Thereafter on persuasion of the opposite party no. 2, the petitioner issued a post dated Cheque being No. 383388 dated 22.02.08 of Rupees Eight Lakhs which on presentation for encashment was returned unpaid with the endorsement “full cover not received”. Thereafter on fulfillment of statutory requirement the complaint was made.
3. The petitioner stated that on receipt of summons from the Learned Court he entered his appearance and pleaded not guilty on being informed of the accusation and as such date was fixed for evidence.
4. At this state after examination of case record the petitioner came to know that the Learned Magistrate without taking cognizance of the offence as alleged, without complying with the provision of Section 200 of the Code of Criminal Procedure, 1973, issued process against him and also proceeded with the case.
5. The petitioner, then, on advice, filed an application before the Learned Magistrate praying for dismissal of the complaint and discharging him from the case on the ground of non compliance of Section 200 of the Code of Criminal Procedure, 1973 and for non-compliance of Section 145 of Negotiable Instrument Act on the part of the opposite party no. 2.
6. The said application was dismissed by the Learned Magistrate on 30.07.2010 inter alia holding that though the contention of the petitioner was true but process had been issued by his predecessor in office and there was no scope of recalling of summons once it was issued or to dismiss the complaint.
7. Learned Advocate for the petitioner submitted that –
i. The issuance of process in the instant case was illegal, improper and seriously prejudiced the petitioner.
ii. There was no statutory provision which enabled the Learned Magistrate to issue process on the complaint filed by a person in his personal capacity without taking cognizance first which was evident from the fact of non-compliance of the provisions of Section 200 of the Code of Criminal Procedure, 1973.
iii. Relevant statutory provision mandated the Learned Magistrate to comply with Section 200 of the Code of Criminal Procedure, 1973 before issuing process against any person shown as accused in the complaint.
iv. Initiation of proceeding by the Learned Magistrate was unwarranted and suffered from serious illegality.
v. The Learned Magistrate ought to have taken note of the fact that there was no compliance with Section 145 of Negotiable Instrument Act, 1973 before proceeding with the case.
vi. The compliance with Section 200 of the Code of Criminal Procedure, 1973 was not a mere formality but it was meant to serve several purposes more so it was at the stage which indicated that the Learned Magistrate had taken cognizance of the offence in other words he had applied his mind to the complaint and as such non compliance thereof vitiated the proceeding.
8. The Learned Advocate for the opposite party no. 2 submitted that the petitioner filed the present revisional application before this Hon’ble High Court challenging the order dated 18.02.2011 passed by the Learned Sessions Judge, Paschim Medinipur in criminal revision no. 284 of 2011 whereby order of the Learned Magistrate was affirmed and for the same re
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AI
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The court confirmed that a Magistrate lacks inherent power to discharge an accused in Section 138 NI Act cases after process issuance, reaffirming that provisions of Section 258 Cr.P.C. do not apply.
Once a party is discharged in a proceeding, they cannot be summoned again without a challenge to that discharge order, as per the procedural requirements of the law.
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The court established that the issuance of a cheque, even if post-dated or issued as security, can constitute a legally enforceable debt under Sec. 138 of the N.I. Act, and that the inquiry under Sec....
The court cannot inquire into the reliability of the allegations in summary proceedings and no further inquiry is necessary if the summoning order demonstrates prima facie findings.
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