IN THE HIGH COURT OF ALLAHABAD
Arun Kumar Singh Deshwal, J.
Jai Prakash Goyal – Applicant
Versus
State of U.P. and Another – Opposite Parties
Application U/S 482 No. - 1054 of 2024
Decided On : 21-03-2024
Section 138 N.I. Act - Quashing of Order - Section 138 N.I. Act - Section 262 to 265 Cr.P.C. - Summary trial, summon case, and warrant case - Legal provisions and their interpretations influencing the court's decision.
Fact of the Case:
The applicant filed an application under Section 482 Cr.P.C. to quash the order and entire proceedings of Complaint Case No.35153 of 2018 under Section 138 N.I. Act. The trial court rejected the discharge application, leading to the present challenge.
Finding of the Court:
The court found that the discharge application was not maintainable as the provisions of warrant case were not applicable, and the legal position was clarified by the Hon'ble Apex Court in the case of Re: Expeditious Trial of Case u/s 138 N.I. Act.
Issues: The issues included the maintainability of the discharge application, applicability of warrant case provisions, and the premature nature of the complaint.
Ratio Decidendi: The court held that the discharge application under Section 258 Cr.P.C. was not maintainable, and the provisions of warrant case were not applicable in the present case.
Final Decision: The application was dismissed, but the applicant was allowed to raise the grounds during trial before the court below. The court also provided for the consideration of bail application in accordance with the law laid down by the Apex Court.
JUDGMENT :
1. Heard learned counsel for the applicant, Sri Ramesh Kumar, learned A.G.A for the State and perused the record.
2. The present application under Section 482 Cr.P.C. has been filed for quashing the order dated 16.12.2023 passed by Presiding Officer, Additional Court No.3, Agra as well as entire proceeding of Complaint Case No.35153 of 2018, under Section 138 N.I. Act, Police Station Hari Parwat, District Agra pending in the court of Additional Court No.3, District Agra.
3. Facts giving rise to the present case is that on issuance of summon order against the applicant under Section 138 N.I. Act, the applicant filed an Application u/s 482 Cr.,P.C. No. 6433 of 2019 challenging the entire proceedings of Complaint Case No.3513 of 2018. That case was disposed of by this Court vide order dated 18.02.2019 permitting the applicant to raise all the dispute regarding the complaint before the trial court. Thereafter, the applicant filed a discharge application before the trial court on 05.03.2019. In that discharge application, the applicant has raised number of issues including the issue of pre-mature complaint as well as cheque in question was given as security, therefore no liability under Section 138 N.I. Act is made out and also that complaint was filed by stranger, hence not maintainable. The trial court vide order dated 16.12.2023 rejected the aforesaid discharge application vide order dated 16.01.2023 on the ground that discharge application is not maintainable as per judgement of Hon'ble Apex Court in Adalat Prasad vs Rooplal Jindal and others; 2004 (7) SCC 338 wherein it is observed that the summoning order cannot be recalled by the court which had issued the same.
4. The contention of counsel for the applicant is that the impugned order dated 16.12.2023 is bad in law; firstly because the court has not considered the issue raised in its discharge application. Secondly, the court has erroneously held that the discharge application is not maintainable after passing the summoning order. Counsel for the applicant further submits that as per proviso of Section 143 N.I. Act, in the proceeding under Section 138 N.I. Act, Section 262 to 265 Cr.P.C. will be followed and Section 262 Cr.P.C. specifically mentioned that during summary trial of case, proceeding of summon case has to be followed and proceeding of summon case has been mentioned in Chapter 20 of Cr.P.C. which cover Sections 251 to 259 and Section 259 specifically provides that the trial court may convert summons case into warrant case in appropriate case, therefore the provisions of the warrant case mentioned in Chapter 19 of Cr.P.C. will also applicable in proceeding under N.I. Act. Therefore, discharge application under Section 244 Cr.P.C. in the proceeding under Section 138 N.I. Act is very well maintainable.
5. Learned counsel for the applicant also submitted that as the complaint itself was premature, therefore, proceeding under Section 138 N.I. Act was itself bad in eye of law as per judgement of Apex Court in the case of Yogendra Pratap Singh vs Savitri Pandey & Anr.; JT2014 (10) SC 444.
6. Counsel for the applicant also relied upon the judgement of Apex Court in the case of Janki Vashdeo Bhojwani and another vs Indusland Bank Ltd; AIR 2005 Supreme Court 439, wherein it was observed that power of attorney holder cannot depose instead of the principal.
7. Per contra, learned AGA submitted that application for discharge is not applicable in the proceeding under N.I. Act unless the court pass specific order converting from the proceeding of summon case to warrant case as required under Section 259 Cr.P.C. and in the present case, the court has not passed any order for converting for summary trial to warrant trial.
8. After considering the submissions of learned counsel for the parties and perusal of record, it appears that in the present case, the applicant has challenged the order dated 16.12.2023 by which discharge application of the applicant was rejected. Therefore,
Subramanium Sethuraman vs State of Maharashtra
The court confirmed that a Magistrate lacks inherent power to discharge an accused in Section 138 NI Act cases after process issuance, reaffirming that provisions of Section 258 Cr.P.C. do not apply.
The main legal point established in the judgment is the limitation on the court's power to recall the process and the necessity of complying with statutory provisions in the issuance of process under....
The court established that for a complaint under Section 138 of the N.I. Act to be maintainable, specific procedural requirements must be met and reflected in the summoning order, including the prese....
The summary nature of proceedings under the Act, 1881 and the provision of appeal against the order of conviction.
The inquiry under Section 202 Cr.P.C. is mandatory before issuing summons to an accused residing outside the jurisdiction, as established by the Supreme Court.
The trial court must follow the prescribed procedure for summary trial under the N.I. Act and cannot invoke Section 256 of the Cr.P.C. without proper reasons and compliance.
Accused must show willingness to pay interest and costs to be considered for discharge under Section 138 of the NI Act.
The court mandated that trials under Section 138 of the N.I. Act must be concluded expeditiously, ideally within six months, following the Apex Court's guidelines.
The withdrawal of the main petition under Section 138 of the Act due to an amicable settlement between the parties led to the quashing of the FIR and subsequent proceedings under Section 174-A of IPC....
For summoning under Section 138 of the NI Act, recording of statements under Sections 200 and 202 Cr.P.C. is not required, and the evidence of the complainant may be given by affidavit as per Section....
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