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2023 Supreme(P&H) 2141

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
HARKESH MANUJA, J.
Rakesh – Petitioner
Versus
The Sonepat District Primary Co-operative Agricultural – Respondent
CRM-M-43458 of 2017
Decided On : 17-01-2023

Advocates Appeared:
For the Petitioner:Mr. Parminder Singh, Advocate.
For the Respondent: None.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Haryana Co-operative Society Act, 1984 - Section 102 - Complaint for dishonour of cheque - Court held that both the remedies under Section 102 and Section 138 can proceed concurrently, as they are based on separate causes of action - Complaints can be filed despite the presence of alternate remedies. (Paras 6 and 7)

Facts of the case:
The petitioner challenged a summoning order related to a cheque dishonour involving a substantial amount, arguing that the bank had alternate remedies available for recovery.

Findings of Court:
The petition was dismissed on grounds that the complaint was valid despite the availability of an alternate remedy and the complaint initiation was not improperly authorized at this stage.

Issues: Whether the complaint under Section 138 can stand in light of alternate remedies and whether authorization for the complaint was adequately established.

Ratio Decidendi: The court emphasized that the availability of alternate remedy does not bar a complaint under Section 138, and authorization issues must be resolved during trial rather than at the initial stage.

Result: Petition dismissed.

JUDGMENT

Harkesh Manuja, J. (Oral)

By way of present petition filed under Section 482 Cr.P.C., challenge has been made to the summoning order dated 28.09.2017 arising out of a complaint bearing No.282 of 2017 filed at the instance of respondent by invoking section 138 of the Negotiable Instruments Act.

2. Facts leading to the case are that on account of dishonour of cheque bearing No.041612 amounting to Rs.4,25,000/-, a complaint under section 138 of the Negotiable Instruments Act, 1881 (for short 'the Act') came to be filed at the instance of respondent-bank against the petitioner wherein he was ordered to be summoned vide order dated 28.09.2017 passed by the Sub Divisional Judicial Magistrate (Ganaur).

3. Challenging the complaint as well as the summoning order arising therefrom, learned counsel for the petitioner submits that an alternate remedy under Section 102 of the Haryana Co-operative Society Act, 1984 was also available with the respondent-Bank by invoking arbitration proceedings against the petitioner for effecting recovery from him as his land already stood mortgaged with the respondent-Bank against the loan transaction. Learned counsel for the petitioner also submits that the complaint was filed at the instance of respondent through its Branch Manager, without there being any resolution passed in his favour, who thus, was not competent to file the same.

4. No one appears on behalf of respondent-bank.

5. I have heard learned counsel for the petitioner and gone through the paper book.

6. Mere fact that alternate remedy under Section 102 of the Haryana Co-operative Society Act, 1984 is available to the respondent-Bank for the purpose of effecting recovery by invoking arbitration proceedings against the petitioner can not be treated as a bar against invoking of Section 138 of the Act at the instance of respondent-Bank in case of dishonor of cheque issued in its favour. To my mind, both the remedies i.e. initiation of arbitration proceedings under Section 102 of the Haryana Co-operative Society Act, 1984 as well as complaint under section 138 of the Act, can go hand in hand, the two being separate and distinct remedies. The remedy under the Haryana Co-operative Society Act, 1984 can be invoked for the purpose of effecting recovery of the amount by the bank whereas, Section 138 of the Act is to be invoked for the purpose of enforcing the punishment upon the drawer of the cheque on fulfillment of mandatory conditions as enjoined under the provisions of the Negotiable Instruments Act 1881. Reference in this regard may be made to a decision rendered by Hon'ble the Supreme Court in case of Gurcharan Singh and another v. Allied Motors Ltd. and another, 2006(2) R.,C.R.(Criminal) 29. Relevant para-5 of the said judgment is reproduced as under:

    "5. The complaints were filed before the award was made. It is also not in issue that objections to the award are pending. It is elementary that the civil proceedings or arbitration proceedings for recovery and the criminal proceedings under section 138 of the Negotiable Instruments Act are based on independent cause of action. The making of the award may be a defence to such a complaint but to what extent the defence would be valid, shall depend upon the facts and circumstances of each case. Mere making of the award cannot be a ground to stall or stay the proceedings initiated under section 138 of the Negotiable Instruments Act. That being the only ground to stay the criminal proceedings of complaint cases, we are unable to sustain the impugned order of the High Court. We are, however, expressing no opinion, one way or the other, either on the merits of complaints or that of defence that may be taken or available to the accused in accordance with law."

7. As regards the second submission raised on behalf of the petitioner about there being no resolution passed in favour of the Branch Manager, authorizing him to file complaint under Section 138 of the Act, at the instance of respondent-B

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