IN THE HIGH COURT OF DELHI AT NEW DELHI
Subramonium Prasad, J.
Manpreet Kaur & Anr. - Appellants
Versus
Vinod Bansal - Respondent
Crl.M.C. No. 669 of 2021; Crl.M.A. No. 3272 of 2021
Decided On : 14-06-2021
Cheque Dishonour - Criminal Revision - Negotiable Instruments Act, 1881, Section 139 - The court discussed the legal provisions of Section 139 of the Negotiable Instruments Act, which presumes that the holder of a cheque received it for the discharge of a debt or liability. The court also highlighted the purpose of introducing Section 138 of the N.I. Act to bring sanctity in commercial transactions and to make the drawer liable for penalties in case of bouncing of cheques. The court emphasized that even if the cheque gets dishonoured with endorsement 'Payment stopped by drawer' and there were insufficient funds on the date when the cheque was presented, it amounts to an offence under Section 138 of the N.I. Act.
Fact of the Case:
The respondent filed a complaint against the dishonour of a cheque. The complaint was dismissed for non-appearance, and a revision petition was filed for restoration. The petitioners challenged the revision petition citing delay in filing and lack of explanation for the delay.
Finding of the Court:
The court found that the complaint was maintainable, and no prejudice would be caused to the petitioners if the complaint is restored. The court held that the delay in filing the revision petition was condoned due to the respondent's apprehension of arrest and the subsequent lockdown. The court dismissed the petition and upheld the order of the Principal District & Sessions Judge.
Issues: Delay in filing the revision petition, maintainability of the complaint, and prejudice to the petitioners if the complaint is restored.
Ratio Decidendi: The delay in filing the revision petition was condoned due to the respondent's apprehension of arrest and the subsequent lockdown. The court emphasized the legal provisions of Section 139 of the Negotiable Instruments Act and the purpose of introducing Section 138 to bring sanctity in commercial transactions.
Final Decision: The petition was dismissed, and the court upheld the order of the Principal District & Sessions Judge.
JUDGMENT
Subramonium Prasad, J. - The present petition under Section 482 Cr.P.C is directed against the order dated 23.11.2020, passed by the Principal District & Sessions Judge (North), Rohini Courts, Delhi in Criminal Revision No. 79/2020.
2. The facts, in brief, leading to the instant revision petition are as under:
a) The respondent herein filed a complaint against the dishonour of a cheque bearing No.017595 dated 01.12.2016 drawn on Oriental Bank of Commerce for Rs.3,50,000/-, given by the petitioners herein as refund of security amount. The said cheque was returned with endorsement "Payment stopped by drawer" vide return memo dated 10.01.2017. A legal notice dated 12.01.2017 was issued by the respondent and on failure of payment of the said amount, a complaint was filed by the respondent herein against the petitioners herein before the learned Trial Court on 28.02.2017.
b) The material on record shows that the complaint was listed for hearing on 18.04.2017 before the learned Trial Court but there was no appearance on behalf of the complainant/respondent herein and the matter was adjourned to 07.07.2017. On 07.07.2017 again due to non appearance of the complainant/respondent herein the matter was adjourned for 11.01.2018. On 11.01.2018, the lawyers were abstaining from work and there was no appearance on behalf of the complainant/respondent herein and the matter was adjourned to 16.05.2018. On 16.05.2018, the complaint was dismissed for non-appearance of the complainant/respondent herein.
c) The respondent herein filed a revision petition on 18.09.2020, being Criminal Revision No.79/2020, under Section 397 Cr.P.C for setting aside the order dated 16.05.2018 and for restoration of the complaint. The said revision petition was accompanied by an application for condonation of delay. A perusal of the abovementioned revision petition shows that the reason given by the complainant/respondent herein for non-appearance was that due to his involvement in some cases regarding some property and financial transactions he was absconding fearing arrest. It is stated that the respondent herein was arrested on 11.02.2019 and he remained in judicial custody till 15.05.2020. It is stated that when he was released from custody on 15.05.2020, there was lockdown due to the outbreak of COVID-19 pandemic. It is stated that the respondent made enquiries regarding the proceedings in his complaint and when he came to know of the dismissal of the complaint for non-appearance he filed the abovementioned revision petition. It is further stated that non-appearance of the complainant/respondent herein in the complaint case was neither deliberate nor intentional.
d) The learned Principal District & Sessions Judge vide order dated 23.11.2020 allowed the revision petition on payment of cost of Rs.5,000/- which was to be paid to the Delhi Legal Service Authority. The revision petition was allowed subject to the following conditions:
"a) That the revisionist will be allowed to conclude pre-summoning evidence on one date given by Ld. Trial Court and the revisionist will not seek unnecessary adjournments, but subject to production of receipt of the cost imposed herein above, before Ld. Trial Court.
b) That the revisionist will ensure that he will appear regularly before the Ld. MIV either in person or through his counsel."
e) The learned Principal District & Sessions Judge held that the complaint was dismissed for non-appearance of the complainant at the pre-summoning stage and that no prejudice would be caused to the petitioners herein if the complaint is restored back. The learned Principal District & Sessions Judge placed reliance on a Division Bench judgment of this Court in CRL.M.C. 1737/2011, titled Hindustan Domestic Oil & Gas Company (Bombay) Limited & Ors. Vs. State & Anr., wherein the Division Bench held that in pre-summoning stage an order dismissing a complaint for nonprosecution or in default does not touch upon the factual or legal merits of the complai
AI
The court emphasized the legal provisions of Section 139 of the Negotiable Instruments Act and the purpose of introducing Section 138 to bring sanctity in commercial transactions.
Restoration of complaints dismissed for non-prosecution is permissible if no prejudice is caused and valid reasons for non-appearance are provided, supported by the presumption under the NI Act regar....
The main legal point established in the judgment is the interpretation and application of the provisions regarding the condonation of delay in proceedings under Section 138 of the Negotiable Instrume....
The denial of liability and refusal to pay the cheque amounts by the accused constituted a valid cause of action for filing the complaint under Section 138 of the NI Act, despite being filed before t....
The statutory presumption under Section 139 of the Negotiable Instruments Act applies when the accused fails to raise a probable defense or contest the existence of a legally enforceable debt or liab....
The presumption under Section 139 of the Negotiable Instruments Act requires the accused to demonstrate a valid defense to avoid liability for dishonor of a cheque.
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