IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
PUSHPENDRA SINGH BHATI, J.
Mahaveer S/o. Gopilal Gurjar - Petitioner
Versus
State of Rajasthan, Through P.P. & Ors. - Respondents
S.B. Criminal Misc.(Pet.) No. 6142 of 2021 Connected With S.B. Criminal Misc.(Pet.) No. 1204 of 2021
Decided On : 16-09-2022
Criminal Misc. Petitions - Section 138 of the Negotiable Instruments Act, 1881 - 145(1), 145(2) - Summary of Acts and Sections: The court discussed the application of Section 145(1) and 145(2) of the Negotiable Instruments Act, 1881, and referred to the judgments of Indian Bank Association (2014) 5 SCC 590 and Rakeshbhai Maganbhai Barot vs. State of Gujarat (R/Special Criminal Application No.3367 of 2018) to allow the accused to submit evidence on affidavit and the procedure for speedy disposal of cases under Section 138. The court highlighted the nature of a Section 138 proceeding as a civil wrong with criminal overtones and the accused's status in such cases.
Fact of the Case:
The respondent lodged a complaint under Section 138 of the Negotiable Instruments Act, 1881 against the petitioner for dishonor of a cheque. The petitioner sought to submit his statement as a witness on affidavit, which was summarily dismissed by the trial court. The petitioner appealed, citing relevant judgments and the necessity of examining prosecution witnesses for proper adjudication.
Finding of the Court:
The court found that the trial court erred in applying the judgments cited and took a myopic view of the judicial precedent. It observed that the accused in a Section 138 proceeding cannot be viewed as an accused under any other criminal offence and allowed the petitioner's application to exhibit evidence in the form of an affidavit.
Issues: The issues revolved around the admissibility of the petitioner's statement on affidavit, the necessity of examining prosecution witnesses, and the correct application of relevant judgments.
Ratio Decidendi: The court's decision was influenced by the interpretation of Section 145(1) and 145(2) of the Negotiable Instruments Act, 1881, the nature of a Section 138 proceeding as a civil wrong with criminal overtones, and the accused's status in such cases.
Final Decision: The court allowed the petitioner's application to exhibit evidence in the form of an affidavit, quashed the impugned orders, and directed the trial court to admit the affidavit of the petitioner as his statement and summon the requisite witnesses for cross-examination.
JUDGMENT :
1. This Criminal Misc. Petitions under Section 482 Cr.P.C. have been preferred claiming the following reliefs :
“It is, therefore, respectfully prayed that the instant misc. petition be kindly allowed this Hon’ble Court may be pleased to set aside the order dated 18.09.2021 passed by Special Judicial Magistrate (NI Act Cases) No. 3, Bhilwara in Case No. 4878/2017 and the trial court be directed to take the statement affidavit of the petitioner on record and treat the same as the statement of the petitioner.
Any other appropriate write, order or direction which this Hon’ble Court may deem fit and proper under the facts and circumstances of the case may also be granted in favour of the Petitioner, during the pendency of the present petition in the Hon’ble Court.”
In S.B. Criminal Misc(Pet.) No. 1204/2021:-
“It is, therefore, respectfully prayed that the instant misc. petition be kindly allowed this Hon’ble Court may be pleased to set aside the order dated 29.1.2021 passed by Special Judicial Magistrate (NI Act Cases) No. 3, Bhilwara in Case No. 4878/2017 and the trial court be directed to summon witness no. 1 and 2 in the list of witnesses produced by the petitioner.
Any other appropriate writ, order or direction which this Hon’ble Court may deem fit and proper under the facts and circumstances of the case may also be granted in favour of the Petitioner, during the pendency of the present petition in this Hon’ble Court.”
2. Brief facts of the case as placed before this Court by learned counsel for the petitioner are that the respondent no.2 lodged a complaint under Section 138 of the Negotiable Instruments Act, 1881 against the petitioner for dishonor of a cheque issued by him in the year 2016. And that, the charges for the said offences were framed against the accused-petitioner and the trial accordingly begun.
3. Learned counsel for the petitioner submitted that thereupon the respondent no. 2 produced himself as a prosecution witness and thereafter none of the prosecution witnesses were called for, and the prosecution evidence was closed; thereafter, the petitioner filed an application along with the list of the prosecution witnesses, and prayed before the learned Court below to permit him to submit his statement as a witness, on affidavit, as under Section 145 (1) of the Act of 1881, which came to be summarily dismissed vide the impugned order, dated 18.09.2021, which as per learned counsel for the petitioner, was a non-speaking order.
4. Learned counsel for the petitioner further submitted that the a bare perusal of the impugned order would reveal that the learned Court below has erred in applying the ratio as laid down by the Hon’ble Apex Court in the judgment of Indian Bank Association & Ors. v. Union of India (2014) 5 SCC 590 wherein as per the learned counsel, it was categorically held that while considering the earlier law that there is no bar on the accused for submitting evidence on affidavit but only reasons recorded in writing.
5. Learned counsel also drew the attention of this Court to the judgment rendered by the Hon’ble High Court of Gujarat in the case of Rakeshbhai Maganbhai Barot vs. State of Gujarat (R/Special Criminal Application No.3367 of 2018, decided by the Hon’ble Gujarat High Court at Ahmedabad on 29.01.2019).
6. Learned counsel for the petitioner further submitted that the examination of the prosecution witnesses in the trial before the learned Court, is essential for the proper adjudication and conclusion of the trial. Furthermore, the testimony of witnesses no. 1 and 2 in the list so submitted was crucial, since a bare perusal of the reply to the notice sent by the respondent no. 2 would reveal that the petitioner had given the details of the vehicles, in relation to which there was an oral agreement between the parties, and the cheque book of the account in question to the respondent no. 2, and therefore, the said question could only be adjudicated upon, a
P. Mohanraj and Ors. Vs. Shah Brothers Ispat Pvt. Ltd.
Indian Bank Association & Ors. v. Union of India
Harischandra Biyani v. Stock Holding Corporation of India Ltd.
Magma Leasing Ltd. v. State of West Bengal and Ors.
Mandvi Cooperative Bank Limited v. Nimesh B. Thakore
The central legal point established in the judgment is the admissibility of the accused's evidence on affidavit in a Section 138 proceeding under the Negotiable Instruments Act, 1881, and the nature ....
Dishonour of cheque – There is no necessity to recall and re-examine complainant after summoning of accused, unless Magistrate passes a specific order as to why complainant is to be recalled.
The court established that under Section 145 of the Negotiable Instruments Act, only complainants can provide evidence via affidavit, not the accused.
In proceedings under the Negotiable Instruments Act, the accused cannot provide evidence via affidavit and must request in writing to testify, adhering to strict procedural compliance.
Issuance of summons without conducting inquiry under Section 202 of the Cr.P.C. is impermissible, making the cognizance under Section 138 of the N.I. Act unsustainable.
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.
Payment of a part or whole of the sum represented on a cheque between the period when the cheque is drawn and when it is encashed upon maturity reduces the legally enforceable debt on the date of mat....
The accused in a Sec. 138 case cannot be permitted to file an affidavit in lieu of Examination-in-Chief, as the provision under Sec. 145 (1) of the Negotiable Instruments Act only allows the complain....
The accused is not entitled to provide evidence via affidavit under the Negotiable Instruments Act; such a right is exclusively reserved for the complainant to ensure a fair trial.
Conviction under Section 138 of the Negotiable Instruments Act affirmed, emphasizing the necessity of due process in criminal trials and the validity of a Magistrate's authority.
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.