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2021 Supreme(MP) 827

High Court of Madhya Pradesh
A.S.Gadkari, J.
SBI GLOBAL FACTORS LTD. – APPELLANT
Versus
STATE OF MAHARASHTRA & ORS. – RESPONDENTS
Cri. W. P. No. 1916 of 2019
Decided On : 03-03-2021

Advocates appeared :
For the Appellant : Yashpal Thakur, Mukund Pandya
For the Respondent : Amit Palkar, Mukesh Modi

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138 and 141 - Accused's right to file evidence on affidavit - The court ruled that, based on the Supreme Court's interpretation, an accused in Section 138 proceedings cannot file an affidavit in lieu of examination-in-chief. The ruling reinforces the distinction between the complainant's and the accused's evidentiary roles. (Para 8)

(B) Legal Interpretation - Acknowledging that there is no provision in law allowing the accused to provide evidence by affidavit, the court emphasizes adherence to legislative intent and procedural fairness. (Para 9)

Facts of the case:
The petitioner challenged the Metropolitan Magistrate's order rejecting their application to discard the accused’s affidavit for evidence. The original complaint under Section 138 was brought against the accused for dishonored cheques. (Para 2)

Findings of Court:
The impugned order allowing the accused to file an affidavit was quashed; the court directed that oral evidence be recorded instead. (Paras 10-11)

Issues: The primary issue was whether an accused can submit evidence by affidavit under Section 138 of the N.I. Act, a matter previously settled by the Supreme Court. (Paras 5-8)

Ratio Decidendi: It was determined that the right of the accused to provide evidence must be governed strictly by statutory provisions; allowing affidavits for evidence could lead to procedural discrepancies. (Paras 8-9)

Result: Petition is allowed, and the impugned order is set aside.

ORAL JUDGMENT : – Rule. Rule made returnable forthwith and by consent of learned counsel for the respective parties, Petition is taken up for final hearing.

2. By the present Petition under Article 227 of the Constitution of India, the petitioner, original complainant, has impugned Order dated 1st April 2019 passed by the learned Metropolitan Magistrate, 33rd Court, Ballard Pier, Mumbai, in C.C. No.4311/SS/2015, thereby rejecting its application dated 1st April 2019, for discarding evidence of accused and for directions to the accused to lead oral evidence.

3. Heard Mr. Thakur, learned counsel for the petitioner, Mr. Palkar, learned A.P.P. for respondent No.1-State and Mr. Modi, learned counsel for respondent Nos.2 to 4. Perused record.

4. The record reveals that, the petitioner has instituted a complaint bearing C.C. No.4311/SS/2015 in the Court of learned Metropolitan Magistrate, 33rd Court, Ballard Pier, Mumbai, under Section 138 read with 141 of the Negotiable Instruments Act, 1881. After receipt of summons, the respondent Nos.2 and 4 appeared before the Court. The respondent No.4 (accused No.3) filed an Affidavit of Evidence in lieu of Examination-in-Chief dated 5th March 2019. To the said affidavit accused also annexed certain documents. The petitioner therefore filed an application on 1st April 2019 for discarding evidence of accused and for directing the respondent No.3 to lead oral evidence. The Trial Court by its cryptic impugned Order dated 1st April 2019, rejected it. The impugned Order reads as ‘Rejected as per latest Judgment of Gujrat H.C. and of Hon’ble S.C. in I.B.A. Case’. The Trial Court also directed and granted 7 days time to the petitioner to challenge its Order or else it would pass no cross Order.

5. The question, whether an accused in proceedings under Section 138 of the N.I. Act is entitled to file an Affidavit in-lieu of Examination-in-Chief or not, is no more res-integra. The Hon’ble Supreme Court in the case of Mandvi Co-op. Bank Ltd. vs. Nimesh B. Thakore , reported in Manu/SC/0016/2010 : AIR 2010 SC 1402 : (2010) 3 SCC 83 , in para Nos.30, 31 and 32 has held as under : –

    “30. Coming now to the last question with regard to the right of the accused to give his evidence, like the complainant, on affidavit, the High Court has held that subject to the provisions of sections 315 and 316 of the Code of Criminal Procedure the accused can also give his evidence on affidavit. The High Court was fully conscious that section 145(1) does not provide for the accused to give his evidence, like the complainant, on affidavit. But the High Court argued that there was no express bar in law against the accused giving his evidence on affidavit and more importantly providing a similar right to the accused would be in furtherance of the legislative intent to make the trial process swifter. In paragraph 29 of the judgment, the High Court observed as follows: – “It is true that section 145(1) confers a right on the complainant to give evidence on affidavit. It does not speak of similar right being conferred on the accused. The Legislature in their wisdom may not have thought it proper to incorporate a word ‘accused’ with the word ‘complainant’ in sub-section (1) of section 145 in view of the immunity conferred on the accused from being compelled to be a witness against himself under Article 20(3) of the Constitution of India....” Then in paragraph 31 of the judgment it observed: – “.... Merely because, section 145(1) does not expressly permit the accused to do so, does not mean that the Magistrate cannot allow the accused to give his evidence on affidavit by applying the same analogy unless there is just and reasonable ground to refuse such permission. There is no express bar on the accused to give evidence on affidavit either in the Act or in the Code..... I find no justified reason to refuse permission to the accused to give his evidence on affidavit subject to the provisions contained in sections 315 and 316 of the

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