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2024 Supreme(Guj) 252

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M. K. Thakker, J.
Patel Dineshbhai Nanjibhai – Appellant
Versus
State Of Gujarat & Anr. – Respondents
R/Criminal Appeal (Against Acquittal) No. 556 of 2024
Decided On : 07-03-2024

Advocates:
Advocate Appeared:
For the Appellant : Ms. Krupa P Soni

IMPORTANT POINT
The Lok Adalat does not have the authority to decide the matter on merits if no compromise or settlement is reached between the parties to a dispute.

Headnote:

Criminal Procedure Code - Financial Dispute - The Legal Services Authorities Act, 1987, Section 20 - The judgment discusses the jurisdiction of Lok Adalat to determine and arrive at a compromise or settlement between the parties to a dispute. It emphasizes that if no compromise or settlement could be reached, the Lok Adalat has to return the case to the Court for disposal in accordance with the law. The court also refers to the case of Estate Officer Versus Colonel H.V. Mankotia, reported in 2022 (12) SCC 609, which clarifies the jurisdiction of Lok Adalat and emphasizes that it does not have the authority to decide the matter on merits if no compromise or settlement is reached.

Fact of the Case:

The complainant lent an amount to the respondent-accused, and upon depositing the cheque issued by the accused, it was returned due to insufficient funds. The complainant filed a private complaint under the Negotiable Instruments Act, 1886, but the trial court, sitting in Lok Adalat, dismissed the complaint under section 256 of the Cr.P.C.

Finding of the Court:

The court found that the Lok Adalat did not have the jurisdiction to adjudicate the matter on merits and should have returned the case to the concerned Court for disposal in accordance with the law. Therefore, the impugned judgment and order of acquittal were quashed and set aside, and the matter was to be restored to its original file.

Issues: The main issue was the jurisdiction of the Lok Adalat to decide the matter on merits and the validity of the judgment and order of acquittal passed by the trial court.

Ratio Decidendi: The key legal principle established is that the Lok Adalat does not have the authority to decide the matter on merits if no compromise or settlement is reached between the parties to a dispute.

Final Decision: The appeal was allowed, and the impugned judgment and order of acquittal were quashed and set aside. The trial court was directed to restore the matter to its original file.

JUDGMENT :

1. This appeal is filed under section 378 of the Criminal Procedure Code (hereinafter referred to as Cr.P.C.) by the appellant-original complainant, challenging the judgment and order passed by the Learned Additional Chief Judicial Magistrate Taluka Idar, District Sabarkantha dated 13-05- 2023, dismissing the complaint by exercising the power under section 256 of the Cr.P.C in special sitting (Lok Adalat).

2. It is the case of the complainant that, the complainant and the respondent-accused were friends and were having family relation, hence as the respondent-accused was in need of the financial assistance, therefore an amount of Rs.2,50,000/- was lent by the complainant to the respondent-accused. On making demand the cheque bearing No.161711 of ICICI bank for the amount of Rs.2,50,000/- dated 08-08-2018 was issued in favor of the complainant. At the time of issuing the cheque, an assurance was given that, on depositing the same, an amount will be credited in the account of the complainant.

3. On depositing the cheque, same was returned with an endorsement of ‘fund insufficient’, therefore the demand notice was issued to the respondent-accused on 31-08-2018 which was received by the respondent-accused on 12-09-2018. As the demand notice was neither replied nor complied with, on following the procedure prescribed under the Negotiable Instruments Act, 1886 (‘the N.I. Act’ referred hereinafter), a private complaint was filed. After recording the verification, learned Trial Court passed an order below Exh.1 issuing the summons under section 204 of the Cr.P.C. vide order dated 24-10-2018. Though the summons/warrants were issued, the respondent remained absent, therefore by impugned order dated 13-05-2023, the learned Trial Court while sitting in Lok Adalat has dismissed the complaint by observing that though more than sufficient opportunities were provided, but no fruitful actions were taken to serve the respondent-accused, therefore learned Trial Court has dismissed the complaint by exercising the power under section 256 of the Cr.P.C. which is impugned before this Court.

4. Heard Learned Advocate Ms.K.P.Soni for the appellant-complainant and Mr.Neeraj Soni for the respondent-accused.

5. Learned Advocate Ms.K.P.Soni for the appellant submits that, the address on which the summons has been issued by the Learned Trial Court is the same address which is mentioned in the appeal memo before this Court.

6. Learned Advocate Ms.K.P.Soni submits that on receiving the notice, respondent-accused appeared in person and thereafter represented through the Learned Advocate which shows that respondent-accused somehow managed the service of the notice/summons before the learned Trial Court.

7. Learned Advocate Ms.K.P.Soni submits that, though complainant made all his efforts to serve the summons to the respondent-accused, however he failed and the learned Trial Court while sitting in the Lok Adalat has passed the impugned judgment and order.

8. Learned Advocate Ms.K.P.Soni submits that while sitting in the Lok Adalat, the learned Trial Court can dispose of the matters which are settled and if matter is not disposed of then it is to be sent back to the regular Court for adjudicating it on merits. However, the learned Trial Court beyond its jurisdiction has passed judgment and order of the acquittal by exercising the power under section 256 of Cr.P.C.

9. Learned Advocate Ms.K.P.Soni submits that the complaint under the Negotiable Instruments Act, 1886 would fall under the time bar litigation and on dismissing the complaint the complainant would be left remediless and therefore Learned Advocate Ms.Soni requested to quash the impugned judgment and order and to allow the appeal.

10. On the other hand, Learned Advocate Mr.Neeraj Soni is unable to dispute the fact that impugned order was passed by the Learned Trial Court while sitting in a special sitting in Lok Adalat. Learned Advocate Mr.Neeraj Soni submits that as the complainant fails in securing th

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