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2025 Supreme(GUJ) 271

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/CRIMINAL MISC.APPLICATION (FOR LEAVE TO APPEAL) NO. 3897 of
2025 In F/CRIMINAL APPEAL NO. 47643 of 2024 ==========================================================
GUJARAT STATE COOPERATIVE AGRICULTURE AND RURAL DEVELOPMENT BANK LTD THRO DEPUTY GENERAL MANAGER Versus STATE OF GUJARAT & ANR.
==========================================================
Appearance:
MR.AMIT R JOSHI(6682) for the Applicant(s) No. 1 Ms. Dhwani Tripathi, APP for the Respondent(s) No. 1 ==========================================================
CORAM: HONOURABLE MS. JUSTICE S.V. PINTO Date : 18/03/2025

Petitioner Advocates:MR.AMIT R JOSHI(6682) ,Respondent Advocate: PUBLIC PROSECUTOR(2)

The court emphasized the necessity for proper evaluation of evidence in cases involving acquittal under the Negotiable Instrument Act.

Headnote:(A) Bharatiya Nagarik Surakhsha Sanhita, 2023 - Section 419(3) - Negotiable Instrument Act, 1881 - Section 138 - Application for leave to appeal against acquittal - The applicant, a bank, issued a cheque which was returned unpaid due to insufficient funds; the trial court acquitted the accused on grounds of lack of authority to issue notice - The court found that the trial court did not properly appreciate the evidence and documents presented. (Paras 1-5)

(B) Acquittal - The principles governing acquittal and the authority to issue statutory notice were discussed, emphasizing the need for proper evaluation of evidence. (Paras 2-3)

Facts of the case:
The applicant bank provided a loan to the respondent, who issued a cheque that was returned unpaid. The trial court acquitted the respondent based on the applicant's alleged lack of authority to issue a notice.

Findings of Court:
The court found that the trial court's conclusion was erroneous and that the evidence warranted further consideration.

Issues: The main issue was whether the applicant had the authority to issue the notice under Section 138 of the NI Act.

Ratio Decidendi: The court held that the trial court failed to properly appreciate the evidence and documents, necessitating a reconsideration of the case.

Result: Application for leave to appeal granted.

ORDER :

(S. V. PINTO, J.)

1. The present application is filed by the applicant – original complainant under Section 419(3) of Bharatiya Nagarik Surakhsha Sanhita, 2023 seeking leave to file an appeal against the judgement and order dated 07.10.2024 passed by the learned 3rd Chief Judicial Magistrate, Junagadh (hereinafter referred to as the “learned Trial Court”) in Criminal Case No. 2972/2019, whereby, the learned Trial Court was pleased to acquit the accused from the offence under Section 138 of Negotiable Instrument Act, 1881 (hereinafter referred to “the NI Act” for short).

2. Learned advocate Mr. Amit Joshi for the applicant submits that the applicant – State Cooperative Agriculture And Rural Development Bank Ltd. had given a loan to the respondent no. 2 towards the outstanding amount. The respondent no. 2 has issued cheque no. 929734 dated 21.05.2019 for Rs. 76,575/- from his account with Saurashtra Gramin Bank, Ajotha Branch. The cheque was deposited by the applicant in his bank and the same returned unpaid with the endorsement “Funds Insufficient”. The demand statutory notice was sent by RPAD which was duly served but no reply was given and hence, the applicant filed the complaint under Section 138 of the NI Act before the Chief Judicial Magistrate, Junagadh. After the respondent no. 2 had appeared and his plea was recorded, the evidence of the applicant was taken on record, wherein, the applicant produced the Letter of Authority at Exh. 48 and all the other documents and the applicant was examined at Exh. 42. The learned Trial Court, after appreciating the evidence, came to a conclusion that the applicant did not had the authority to give the notice and solely on that ground, has passed the impugned judgement and order of acquittal. Learned advocate submits that the learned Trial Court has erroneously concluded and acquitted the respondent no. 2 where in fact, the evidence proved that the offence under Section 138 of the NI Act is proved. That the applicant has a good case on merits and learned advocate urges this Court to allow the leave to appeal.

3. Learned APP Ms. Dhwani Tripathi for the respondent State has submitted that the learned Trial Court has considered all the documents produced by the applicant and has also considered the evidence and has passed the impugned order of acquittal considering the settled principles of law and hence, the leave to appeal may not be granted.

4. Considering the submissions of learned advocate for the applicant as also the Letter of Authority produced on record at Exh. 48, prima facie it appears that the learned Trial Court has not properly appreciated the documents produced on record and the issue requires consideration.

5. In the peculiar facts and circumstances of the case in the considered opinion of this Court the application deserves to be considered. Consequently, the application for leave to appeal is granted and disposed off accordingly.  

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