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
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:
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
M/s TRL Krosaki Refractories Ltd. v. M/s SMS Asia Private Limited
The central legal point established in the judgment is the requirement of a valid commercial relationship and a valid mercantile contract for enforcing the provisions of Section 138 of the Negotiable....
Dishonour of a cheque due to insufficient funds constitutes an offence under Section 138 of the N.I. Act, regardless of claims of theft, unless the evidence at trial proves otherwise.
Dishonour of a cheque under Section 138 is actionable regardless of claims of stop payment or misplaced cheque, with legal presumptions favoring existence of debt or liability.
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