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SUPREME COURT OF INDIA
ABHAY S.OKA, PANKAJ MITHAL, JJ.
Vishwakalyan Multistate Credit Co Op Society Ltd. – Appellant
Versus
Oneup Entertainment Private Limited – Respondent
Criminal Appeal No.2484 of 2023(Arising out of S.L.P.(Crl.) No.6318 of 2023)
Decided on : 21-08-2023
Negotiable Instruments Act - Jurisdiction - Inquiry under Section 202 of CRPC
Fact of the Case:
The appellant filed a complaint under Section 138 of the Negotiable Instruments Act. The High Court set aside the order issuing process due to the respondent's office being outside the jurisdiction of the Magistrate, without directing an inquiry under Section 202 of the CRPC.
Finding of the Court:
The Court modified the judgment and directed the Trial Court to proceed with the inquiry under Section 202 of the CRPC, guided by the Constitution Bench's direction to permit evidence of witnesses on affidavit and to conduct the inquiry expeditiously.
Issues: Jurisdiction of the Magistrate, Compliance with Section 202 of CRPC
Ratio Decidendi: The Court emphasized the need for the Trial Court to conduct an inquiry under Section 202 of the CRPC in cases under Section 138 of the NI Act, following the guidelines laid down by the Constitution Bench.
Final Decision: The appeal was partly allowed, and the Trial Court was directed to conduct the inquiry under Section 202 of the CRPC expeditiously, guided by the Constitution Bench's directions.
ORDER :
1. Leave granted.
2. Heard the learned counsel appearing for the appellant. Despite service, no one has entered appearance on behalf of the respondent.
3. The appellant is the complainant in a complaint filed under Section 138 of the Negotiable Instruments Act, 1881 (for short "the NI Act"). On 26th June, 2021, the Judicial Magistrate issued process on the complaint. By the impugned judgment, the High Court has held that as the respondent was having its office outside the jurisdiction of the Court of the learned Magistrate, it was necessary for the learned Magistrate to hold an inquiry under Section 202 of the Code of Criminal Procedure, 1973 (for short "the CRPC"). In paragraph 15 of the impugned judgment, the High Court held that for non-compliance with the mandate of Section 202 of the CRPC, the order issuing process is illegal. Therefore, the High Court has proceeded to set aside the order issuing process. However, no further direction was issued by the High Court to the learned Judicial Magistrate to hold an inquiry under Section 202 of the CRPC.
4. We may note here that as far as complaints under Section 138 of the NI Act are concerned, this Court in Suo Motu Writ Petition (Criminal)No.2 of 2020 in the case of "In Re : Expeditious Trial of Cases Under Section 138 of N.I.Act, 1881[2021 SCC OnLine SC 325]" has laid down the guidelines. In clause (3) of paragraph 24 of the said decision, the Constitution Bench has directed as under:
5. We, therefore, modify the impugned judgment and direct the Trial Court to proceed from the stage of Section 202 of the CRPC. While doing so, the learned Magistrate will be guided by the direction issued by the Constitution Bench which is reproduced above.
6. With the above modification, the appeal is partly allowed.
7. The inquiry under Section 202 of the CRPC shall be conducted as expeditiously as possible and in any event within a period of one month from the date on which a copy of the order is received by the Trial Court.
An enquiry under Section 202 of Cr.P.C. is mandatory before the issuance of process in Complaints filed under Section 138 of the Negotiable Instruments Act, 1881, and the Magistrate must comply with ....
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