IN THE HIGH COURT OF DELHI AT NEW DELHI
Manoj Kumar Ohri, J.
Century Aluminium Manufacturing Company Ltd. & Anr. - Appellants
Versus
Hero Fincorp Ltd - Respondent
Criminal Miscellaneous Case No. 3402 of 2021, Criminal Miscellaneous Application No. 20546, 20547 of 2021
Decided On : 21-12-2021
N.I. Act - Application under Section 145(2) N.I. Act - Section 145(2) N.I. Act - Summary of the acts and sections referenced and discussed by the court: Section 145(2) N.I. Act, Section 251 Cr.P.C., Radhey Shyam Garg v. Naresh Kumar Gupta (2009) 13 SCC 201, Mandvi Cooperative Bank Limited v. Nimesh B. Thakore (2010) 3 SCC 83 - The court discussed the mandate contained in Section 145(2) N.I. Act, which obliges the concerned Court to summon a person who has given evidence on affidavit in terms of Section 145(1) N.I. Act if an application is filed by the accused. The court also highlighted the discretionary power of the court conferred upon it by Section 145(2) N.I. Act and emphasized the need to read Section 145 reasonably. The interpretations of the legal provisions influenced the court's decision to set aside the impugned order and allow the petitioners' application under Section 145(2) N.I. Act.
Fact of the Case:
The petitioners filed a petition under Section 482 Cr.P.C. assailing the order passed by the Trial Court dismissing their application under Section 145(2) N.I. Act seeking cross-examination of the complainant witness.
Finding of the Court:
The Court found that the Trial Court committed an error in dismissing the application of the accused, which was filed prior to framing of notice under Section 251 Cr.P.C. and pressed even at the time of framing thereof. The impugned order appeared to have been passed in ignorance of the mandate contained in Section 145(2) N.I. Act.
Issues: The main issue was the dismissal of the petitioners' application under Section 145(2) N.I. Act by the Trial Court, and whether the Trial Court erred in its decision.
Ratio Decidendi: The Court's decision was based on the interpretation of Section 145(2) N.I. Act and the mandate it imposes on the concerned Court to summon a person who has given evidence on affidavit in terms of Section 145(1) N.I. Act if an application is filed by the accused.
Final Decision: The petition was allowed, and the impugned order was set aside. The petitioners' application under Section 145(2) N.I. Act was allowed, and the Trial Court was directed to grant the petitioners/accused an opportunity to cross-examine the complainant witness.
JUDGMENT
Manoj Kumar Ohri, J. - The present petition has been filed under Section 482 Cr.P.C. on behalf of the petitioners assailing the order dated 03.12.2021 passed by the learned M.M. (N.I. Act), Digital Court-01, South District, Saket Courts, New Delhi in CC No. 67/2020, vide which the petitioners application under Section 145(2) N.I. Act seeking cross-examination of the complainant witness has been dismissed.
2. Learned counsel for the petitioners/accused submits that on 03.12.2021, the Trial Court had framed notice under Section 251 Cr.P.C., to which the accused pled not guilty. On the same date, an application already filed on 10.09.2021 under Section 145(2) N.I. Act was pressed, however the same was dismissed by the Trial Court without assigning any reason, except for saying that no valid ground of defence had been put forward by the accused. Learned counsel has placed reliance on the decisions rendered by this Court in Ashish Aggarwal v. Sushil Kumar reported as 2020 SCC OnLine Del 1761 and Sunil Agarwal v. Sunil Gupta and Ors. reported as MANU/DE/4676/2019 in support of his case. He prays that the application filed on behalf of the accused under Section 145(2) N.I. Act may be allowed, and undertakes that in case the said relief is granted, the accused will not seek any adjournment before the Trial Court in that regard.
3. Issue notice.
4. Mr. Aditya Prasad, Advocate appears for the respondent and accepts notice. He submits that the order dated 03.12.2021 would show that the Trial Court had gone through the defence put forward in reply to the notice framed under Section 251 Cr.P.C., and thus, the same is not liable to be set aside.
5. I have heard learned counsels for the parties and also perused the material placed on record.
6. Before adverting to the facts of the present case and the position of law on the subject, it is deemed apposite to reproduce Section 145(2) N.I. Act which reads as under:-
"145. Evidence on affidavit
.-
xxx
(2) The court may, if it thinks fit, and shall, on the application of the prosecution or the accused, summon and examine any person giving evidence on affidavit as to the facts contained therein."
7. A bare perusal of the provision would show that once an application is filed by the accused thereunder, the concerned Court is obliged to summon the person who has given evidence on affidavit in terms of Section 145(1) N.I. Act. The Supreme Court in Radhey Shyam Garg v. Naresh Kumar Gupta reported as (2009) 13 SCC 201 has expounded the law on the issue as follows:-
"10. Whereas sub-section (1) of Section 145 uses the term "may", sub-section (2) thereof uses the term "shall". The first part of the aforementioned provision must be read with sub-section (1) of Section 145. It, therefore, merely points out to the discretionary power of the court conferred upon it by reason thereof. The court, however, has no other option but to summon and examine any person who has given evidence on affidavit as to the facts contained therein if an application is filed either by the prosecution or the accused. Section 145 must be read reasonably." (emphasis added)
8. Likewise, in Mandvi Cooperative Bank Limited v. Nimesh B. Thakore reported as (2010) 3 SCC 83, the Supreme Court has enunciated the mandate contained in Section 145(2) N.I. Act in the following terms:-
"30. Mr Ranjit Kumar, learned Senior Advocate, appearing for the appellant in appeal arising from SLP (Crl.) No. 4760 of 2006 pointed out that sub-section (2) of Section 145 uses both the words, "may" (with reference to the court) and "shall" (with reference to the prosecution or the accused). It was, therefore, beyond doubt that in the event an application is made by the accused, the court would be obliged to summon the person giving evidence on affidavit in terms of Section 145(1) without having any discretion in the matter. There can be no disagreement with this part of the submission" (emphasis added)
9. On a conspectus of the statutory provision that is Section 1
Mandvi Cooperative Bank Limited vs. Nimesh B. Thakore (2010) 3 SCC 83
The central legal point established in the judgment is the mandate contained in Section 145(2) N.I. Act, which obliges the concerned Court to summon a person who has given evidence on affidavit in te....
A court is mandated to summon witnesses for cross-examination if requested by the accused under Section 145(2) of the Negotiable Instruments Act, without discretion to dismiss absent valid grounds.
Section 145(2) of Act, clearly reveals that Court on receipt of application of prosecution or accused has no option but to summon and examine any person giving evidence on affidavit as to facts conta....
The court established that under Section 145 of the Negotiable Instruments Act, only complainants can provide evidence via affidavit, not the accused.
The court held that under Section 145 of the NI Act, the accused must be allowed to cross-examine the complainant before recording their plea of defence, ensuring the fairness of the trial process.
[The judgment establishes that an accused in a Sec. 138 N.I. Act case has an absolute right to cross-examine the complainant if a probable defense is disclosed, reinforcing the procedural safeguards ....
Accused in Section 138 of N.I. Act case, cannot be permitted to give his evidence by way of affidavit, like complainant, in view of Section 145 of N.I. Act.
The court reinforced that under the Negotiable Instruments Act, an accused must file a specific application to recall a witness for cross-examination, failing which the trial can proceed without such....
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