SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2004 Supreme(Guj) 384

Gujarat High Court
Judgename :A.M.KAPADIA
HASHMIKANT M SHETH - Appellant
Versus
STATE OF GUJARAT - Respondent
CRI.M.A.2212 of 2004
Decided On : 06/28/2004

Advocates Appeared: G.M.AMIN, MAHENDRA K.PATEL, VIPUL M.PANCHOLI

Headnote:

Code of Criminal Procedure, Section 482 - Negotiable Instruments Act, Section 138, 138 to 142, Section 5 (a) - Petition filed under Section of the Code of Criminal Procedure petitioner against whom Criminal Complaint bearing is filed in the Court of learned Judicial Magistrate First Class (Rural) for commission of alleged offence under Section of Negotiable Instruments Act in which process has been issued, has prayed to quash and set aside the complaint and process issued on the grounds stated in the petition - Petitioner is the original accused whereas respondent is the original complainant in the above referred criminal complaint for the sake of convenience and brevity the petitioner is referred to as accused whereas respondent is referred to as complainan thereinafter in this judgment - Petition the accused came in contact with the complainant and therefore as and when the accused was in need of money he used to borrow money from the complainant - Transaction started between both of them since and the last transaction between them took place in the year In that connection the accused was asked to issue blank for the purpose of surety and security. The accused was having his account and with Bank of Baroda - Accused accordingly issued blank in of the complainant as per the demands made by him - It was agreed between them that the complainant shall not deposit the said without prior intimation to the accused - Held, Judge has also ignored the relevant observations made in 15 of the judgment rendered by the Supreme Court in which reads as under - We are of the opinion that even though Section is a penal statute it is the duty of the Court to interpret it consistent with the legislative intent and purpose so as to suppress the mischief and advance the remedy - As stated above Section of the Act has created a contractual breach as an offence and the legislative purpose is to promote efficacy of banking and of ensuring that in commercial or contractual transactions are not and credibility in transacting business through is maintained - Interpretation would be in accordance with the principle of interpretation quoted above away the cobweb varnish and show the transactions in their true light to carry out effectively the breach of the statute it must be so construed as to defeat all attempts to do, or avoid doing, to an indirect or circuitous manner that it has prohibited - When the cheque is returned by a bank with an endorsement account closed, it would amount to returning the cheque unpaid because amount of money standing to the credit of that account is insufficient to honour the cheque as envisaged in Section - held that the decision of the learned Single Judge in the case of Urban Cooperative Credit Society(supra) is judgment per incuriam and has no value as a binding precedent - Held that offence in terms of Section of the Act would stand committed even if issued after closure of account is dis honoured because the amount of money standing to the credit of "that account" would be at the relevant time apart from it being closed - Contention that after closure of the account maintained by the drawer if cheque was issued then no offence in terms of Section 138 of the Act is made out, has no force and substance and is therefore rejected - Petition is rejected.

A. M. KAPADIA, J.

( 1 ) IN this petition filed under Section 482 of the Code of Criminal Procedure (the Code for short) the petitioner against whom Criminal Complaint bearing No. 558 of 2003 is filed in the Court of learned Judicial Magistrate, First Class, Ahmedabad (Rural) for commission of alleged offence under Section 138 of Negotiable Instruments Act (the Act for short) in which process has been issued, has prayed to quash and set aside the complaint and process issued thereunder, on the grounds stated in the petition.

( 2 ) THE petitioner is the original accused whereas respondent No. 2 is the original complainant in the above referred criminal complaint. Therefore, for the sake of convenience and brevity, the petitioner is referred to as "the accused" whereas respondent No. 2 is referred to as "the complainant" hereinafter in this judgment.

( 3 ) AS per the averments made in the petition, the accused came in contact with the complainant and therefore as and when the accused was in need of money he used to borrow money from the complainant. The transaction started between both of them since 1992-93 and the last transaction between them took place in the year 1998. In that connection the accused was asked to issue blank cheques for the purpose of surety and security. The accused was having his account Nos. 201534 and 3546583 with Bank of Baroda. The accused accordingly issued blank cheques in favour of the complainant as per the demands made by him. It was agreed between them that the complainant shall not deposit the said cheques without prior intimation to the accused. It is pleaded by the accused that according to the complainant the accused was required to pay Rs. 2,70,000/- towards the outstanding dues including interest. Therefore, in that connection, the accused had approached the complainant to settle his account on 15. 8. 2002 and had accepted his liability, though according to the accused all these facts are concocted and the same are alleged only with a view to create false evidence. According to the accused, the complainant used the said blank cheques issued by the accused in the year 1998 in respect of the last alleged transaction and entered the dates of all the cheques for the period between 1. 9. 2002 to 10. 11. 2002. The accused was not intimated regarding the dates, amount entered in the cheques by the complainant. To the great shock and surprise of the accused, the complainant deposited all the ten cheques with his banker Ahmedabad District Cooperative Bank Limited, Aslali Branch on 24. 12. 2002, the total amount of which comes to Rs. 2,40,000/ -. The said cheques were dishonoured on the ground of "exceed arrangement and account closed". 3. (i) on return of the said cheques, the complainant issued notice to the accused under section 138 of the Act on 31. 12. 2002. According to the accused, in the said notice, the complainant has stated incorrect and fabricated facts with a view to use the same as a piece of evidence against him before the appropriate court of law. 3. (ii) the accused replied to the said notice vide his reply dated 10. 1. 2003 wherein the accused has categorically denied all the allegations made by the complainant in his notice dated 31. 12. 2002. 3. (iii) notwithstanding the reply given by the accused, the complainant has filed the impugned complaint in the court of learned Judicial Magistrate, First Class, Ahmedabad (Rural) for commission of the alleged offence punishable under section 138 of the Act and the learned Magistrate has issued summons against the accused. 3. (iv) according to the accused, the complainant has also filed two other Criminal Complaints for commission of the alleged offence under section 138 of the Act in respect of other cheques. According to the accused the impugned complaint is filed with a malafide and bad intention to harass him and to extort money from him. The impugned complaint therefore is nothing but a sheer abuse of process of law. Therefore the petitio































Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top