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2024 Supreme(Cal) 623

IN THE HIGH COURT AT CALCUTTA
Shampa Dutt (Paul), J.
KIP Limited - Petitioner
Versus
The State of West Bengal & Anr. – Respondents
CRR 1714 of 2023
Decided On : 09-01-2024

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Debasis Ray, Mr. Avik Ghatak, Ms. Arfeen Begum.
For the Respondent: Ms. Kavita Saraff.

The main legal point established in the judgment is the essentiality of evidence for a just decision, as provided under Section 311 of Cr.P.C.

Headnote:

Negotiable Instruments Act - Revision against rejection of prayer under Section 311 of Cr.P.C - Section 138 of Negotiable Instruments Act, 1881 - Summary of Acts and Sections: The court discussed Section 138 of the Negotiable Instruments Act, 1881 and Section 311 of the Code of Criminal Procedure. The court analyzed the power of the court to summon and examine witnesses and the essentiality of evidence for a just decision.

Fact of the Case:

The petitioner, a private limited company, initiated proceedings under Section 138 of the Negotiable Instruments Act, 1881 against the opposite party no. 2. The petitioner alleged that the opposite party issued a cheque that was dishonored, leading to a demand notice being issued. The petitioner sought to recall and re-examine a witness to exhibit documents supplied by the CBI, but the request was rejected by the Magistrate.

Finding of the Court:

The court found that the documents sought to be brought on record were essential for arriving at a just decision in the case. The court held that the rejection of the petitioner's prayer under Section 311 of Cr.P.C was not in accordance with the law and set aside the order under revision. The court directed the Magistrate to dispose of the case, permitting the petitioner to bring in the documents on record as prayed for within six months.

Issues: The main issue was the rejection of the petitioner's prayer under Section 311 of Cr.P.C to recall and re-examine a witness and exhibit documents supplied by the CBI.

Ratio Decidendi: The court's decision was based on the essentiality of the evidence for a just decision, as provided under Section 311 of Cr.P.C. The court emphasized the need to aid in the discovery of truth and the requirement of justice.

Final Decision: The court allowed the petition under Section 311 Cr.P.C, set aside the order under revision, and directed the Magistrate to dispose of the case, permitting the petitioner to bring in the documents on record as prayed for within six months.

JUDGMENT :

Shampa Dutt (Paul), J.

1. The present revision has been preferred against an Order dated 06.04.2023 passed by the Learned Metropolitan Magistrate, 14th Court, Calcutta in connection with Complaint Case No. 34911 of 2009 which had been initiated in the backdrop of an alleged commission of an offence under Section 138 of the Negotiable Instruments Act, 1881 against the opposite party no. 2 herein, thereby rejecting the petitioner's prayer under Section 311 of the Code of Criminal Procedure for recalling of Prosecution Witness No. 1.

2. The petitioner is a private limited company and has initiated proceedings under Section 138 of the Negotiable Instruments Act, 1881 against the opposite party no. 2.

3. The case in the petition of complaint is that the petitioner was carrying on its business of mining of granites. The opposite party no. 2 approached the petitioner to provide her with financial assistance for the purpose of expanding her business, which she carried on with her other family members. The petitioner, in good faith, provided financial assistance to the Opposite Party No. 2 from time to time. The opposite party no. 2, in partial discharge of her existing debts and/or liabilities, issued to the petitioner, an account payee cheque bearing no. 713379 dated 10.11.2008, drawn on Axis Bank Limited, Burra Bazar, for a sum of Rs. 2,00,00,000/- (Two Crore Rupees only), which, upon being deposited for encashment by the petitioner with its banker within its validity period was returned unpaid vide cheque return memo dated 04.05.2009, being dishonoured by the banker of the Opposite Party No. 2 for the reason "Funds Insufficient". A demand notice dated 19.05.2009, in terms with Section 138 of the Negotiable Instruments Act, 1881, was issued by the petitioner and the same was received by the opposite party no. 2 herein on 21.05.2009, but was not replied thereto.

4. It is further submitted that the petitioner and the opposite party no. 2 are accuseds in Special CBI Case No. 22 of 2010, initiated on two complaints dated 14.03.2009 made by the General Manager, Zonal Office, Central Bank of India, Kolkata, alleging offences punishable under Section 120B read with Sections 420/409/468/471/477A of the Indian Penal Code and Section 13(2) read with Section 13(1)(c) and (d) of the Prevention of Corruption Act, which has ended in charge sheet and now pending before the learned 3rd Special Judge, CBI, Bankshall Court, Calcutta.

5. In connection to the said case, the CBI conducted a search at the premises belonging to the Opposite Party No.2 and/or her husband located at 136, Cotton Street, 1st floor, Utkalmoni Gopabandhu Sarani, Kolkata - 700007 on 04.04.2009 at about 15:00 hrs. In the course of conducting such a search, the CBI seized multiple documents and articles from the Opposite Party No.2. A seizure list, stating therein the details of documents and the articles seized by the CBI at the said premises on 04.04.2009 in connection with the aforementioned Special CBI Case no. 22 of 2010 was prepared.

6. The petitioner further submits that the following documents were also seized among others by the seizure list dated 04.04.2009 from the premises of the opposite party no. 2:-

Entry no. 7:

One cheque book of CA No. 277010200019761 of Axis Bank, Bara Bazar Branch held in the name of Kavita Saraff, containing cheques starting from 713317 to 713318, all signed by Kavita Saraff and issued in the name of Motilal Oswal Security Ltd., Krishna Smelters Pvt. Ltd., Bineet Saraff and Kali International.

Entry no.15:

One bunch of cheques, one of Axis Bank, Bara Bazar Branch of A/c no. 277010200019761, vide Cheque no. 713386, signed by Kavita Saraff, payable to Rajco. Steel Enterprises for Rs. 1 Crore….

Entry no. 16:

One bunch of Return Cheques containing Cheque no. 713344 of A/c no. 277010200019743 of Axis Bank Bara Bazar Branch, along with Cheque Return Memo. Cheque No. 718956 and 718952 of A/c. 2

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