IMPORTANT POINT
Dishonour of cheque – Accused who had failed to deposit interim compensation could not be fastened with any other disability including denial of right to cross-examine witnesses examined on behalf of complainant – If a statute prescribes a method or modality for exercise of power, by necessary implication, other methods of performance are not acceptable.

JUDGMENT :

Uday Umesh Lalit, J.

1. Leave granted.

2. This appeal challenges the correctness of the judgment and order dated 17.12.2021 passed by the High Court of Karnataka at Bengaluru (‘the High Court’, for short) in Criminal Revision Petition No. 39 of 2021.

3. The instant proceedings arise out of Complaint Case No. 244 of 2019 instituted by the Respondent herein in respect of offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (‘the Act’, for short) in the court of the Senior Civil Judge & JMFC, Nagamangala, submitting inter alia :

(a) A cheque dated 25.02.2019 in the sum of Rs.7,00,000/- was drawn by the Appellant in favour of the Respondent towards repayment of hand loan received by the Appellant from the Respondent.

(b) Said cheque was presented for encashment on 01.03.2019 but was dishonoured on account of “insufficient funds”.

(c) Statutory notice was issued by the Respondent to the Appellant on 12.03.2019.

(d) However, the Appellant failed to repay the amount to the Respondent.

(e) Consequently, the Appellant was guilty of offence punishable under Section 138 of the Act.

4. After the cognizance of the aforesaid complaint was taken and the summons were issued, the Appellant appeared before the concerned court through his counsel on 16.08.2019. On the very same date, an order was passed by the Trial Court directing the Appellant to deposit 20% of the cheque amount as interim compensation in terms of Section 143(A) of the Act within 60 days. The period so granted, got over on 15.10.2019 and on the request of the Appellant further extension of 30 days was granted; but no deposit was made by the Appellant.

5. When the matter was taken-up for examination of witnesses, an application was made on behalf of the Appellant under Section 145(2) of the Act seeking permission to cross-examine the Respondent. In view of his failure to deposit the interim compensation as directed, the application preferred by the Appellant was found to be not maintainable and was dismissed by the Trial Court vide order dated 25.10.2019.

6. By subsequent order dated 29.11.2019 the Complaint Case was accepted by the Trial Court finding the Appellant guilty under Section 138 of the Act. The Trial Court directed the Appellant to pay fine in the sum of Rs.7,00,000/-, in default whereof to undergo simple imprisonment for six months. Out of the aforesaid sum, Rs.5,000/- was to be remitted to the State while the remaining amount of Rs.6,95,000/- was directed to be made over to the Respondent as compensation under Section 357 of the Criminal Procedure Code, 1973 (‘the Code’, for short).

7. The Appellant being aggrieved, preferred Criminal Appeal No. 190 of 2019 in the court of V Addl. District and Sessions Judge, Mandya, which appeal however was dismissed by the Appellate Court by its order dated 28.10.2020. The order of conviction and sentence passed by the Trial Court was thus affirmed. During the course of its order one of the points raised for consideration was whether the Trial Court had given sufficient opportunity to the Appellant to cross-examine the Respondent. It was observed by the Court:-

“18. It is relevant to mention here that in the present appeal also, after filing of this appeal, accused did not comply with the order of this Court dated 30.12.2019 to deposit 20% of cheque amount, hence, it discloses that the accused is reluctant in complying with the order of this Court. Under these circumstances, this Court is of the opinion that learned Magistrate has rightly refused the prayer made by accused seeking permission to cross-examine P.W.1 and proceeded to pass impugned order”

8. The matter was carried further by the Appellant by filing Criminal Revision Petition No. 39 of 2021 in the High Court. The High Court by its judgment and order dated 17.12.2021, which is presently under challenge, dismissed said Criminal Revision Petition affirming the view taken by the courts below. It was observed that the conduct of the Appellant in not