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2009 Supreme(Online)(KER) 5628

HIGH COURT OF KERALA
V.GIRI, J
N.M.ABOOBACKER – Appellant
Versus
MECHERI ALAVI – Respondent
Crl.Rev.Pet/627/2001



Advocates:
Sri.K.M.SATHYANATHA MENON, Sri.BABU S. NAIR, Smt.M.K.PUSHPALATHA

Dishonor of cheque claims under the Negotiable Instruments Act require proper notice, and without requisite elements for inducement, related IPC charges cannot stand.

Headnote:

Negotiable Instruments - Cheque Dishonor - Negotiable Instruments Act, 1881 Section 138, 142; Indian Penal Code Section 420; Code of Criminal Procedure Section 245(2) - The court found that no proper notice was served regarding the dishonored cheque, therefore, dismissing the challenge to discharge under IPC Section 420 and validating the discharge under Cr.P.C.

Fact of the Case:

The complainant filed a complaint under the Negotiable Instruments Act, claiming a dishonored cheque was issued to discharge a liability. The lower court did not take cognizance of Section 138 due to lack of notice but recognized an offense under Section 420 IPC and later discharged the accused under Section 245(2) Cr.P.C.

Issues: Whether the lower court correctly discharged the accused under Section 245(2) of the Cr.P.C. after dismissing the complaint related to Section 138 of the Negotiable Instruments Act and confirming the lack of requisite elements for Section 420 IPC.

Ratio Decidendi: The court concluded that the absence of a proper notice invalidated the claim under Section 138, and the failure to establish inducement meant no offense under Section 420 IPC was substantiated, justifying the discharge order.

Final Decision: The revision petition is dismissed.

O R D E R

The complainant in C.C.No.260/00 on the file of the Chief Judicial Magistrate, Kottayam, is the petitioner herein.

2. The complaint was originally filed under Section 142 of the Negotiable Instruments Act, 1881 {for short 'the Act'}, alleging that the cheque issued by the accused in discharge of a liability was dishonoured due to insufficiency of funds and that therefore, the accused has committed the offence under Section 138 of the Act.

3. Finding that no notice was served on the accused, the court below declined to take cognizance of the offence under Section 138 of the Act, but nevertheless took cognizance under Section 420 of the Indian Penal Code . It is now stated, across the Bar, that the complainant had preferred a revision against the order of the trial court declining to take cognizance of the offence under of the Act, before the concerned Sessions Court. The details of the same are not available. Therefore, I do not propose to express any opinion as regards the said contention or on the said aspect.

4. After having taken cognizance of the offence under Section 420 of the Indian Penal Code , the case was taken on file, though originally it was transferred to the register of long pending cases, after the accused had surrendered, it was again refiled. The accused then prayed for a discharge under Section 245 (2) of the Code of Criminal Procedure . The court below accepted the plea of the accused and discharged the accused under Section 245 (2) of the Cr.P.C. The present revision has been filed in challenge of the same.

5. I have considered the order passed by the court below and I heard learned counsel on both sides.

6. The court below took note of the fact that the complainant did not have a case that he was induced to deliver any property and hence, a cheque was issued. In other words, the necessary ingredients of Section 415 Indian Penal Code were not made out. I am of the view that the court below is correct in its decision. I have perused a copy of the complaint made available by the complainant's counsel. Apart from mentioning Section 420 of the , the complainant had only stated that the accused had issued a cheque in discharge of a liability, but the same was dishonoured. The complaint was preferred only under Section 142 of the Act. No purpose would be served by proceeding with the complaint for the offence under IPC . The court below was, therefore, correct in discharging the accused under Section 245 (2) of the Cr.P.C.

The revision petition is, therefore, bereft of merit and is dismissed. But, I make it clear that the discharge of the accused in relation to the offence under Section 420 IPC will not stand in the way of the complainant prosecuting a remedy against the order passed by the trial court declining to take cognizance of the offence under Section 138 of the Act, if such remedy has been already availed of.

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