IN THE HIGH COURT OF BOMBAY
N. J. Jamadar, J.
Viral Enterprises - Appellant
Versus
The State of Maharashtra & Anr. - Respondents
Writ Petition No.3034 of 2023 with Writ Petition No.3035 of 2023 with Writ Petition No.3047 of 2023 with Writ Petition No.3045 of 2023
Decided On : 10-06-2024
EVIDENCE - Negotiable Instruments Act, 1881 - Sections 138, 143, 145 - The court analyzed the provisions of the Negotiable Instruments Act, particularly sections 138, 143, and 145, which govern the procedure for trials related to dishonored cheques. Section 145 allows the complainant to provide evidence via affidavit, but the court interpreted that this right does not extend to the accused. The court emphasized the legislative intent behind these provisions aimed at expediting trials, concluding that the omission of the term 'accused' in section 145 was deliberate, thus influencing the decision to deny the accused the right to submit evidence via affidavit.
Fact of the Case:
The complainant filed complaints against the accused for dishonor of cheques under section 138 of the Negotiable Instruments Act, 1881. The accused sought to provide evidence via affidavit, which was objected to by the complainant. The Metropolitan Magistrate ruled against the accused's request, leading to the present writ petitions.
Finding of the Court:
The court found that the right to provide evidence via affidavit is explicitly granted to the complainant under section 145 of the NI Act, and this right does not extend to the accused. The court upheld the previous rulings that interpreted the legislative intent behind the provisions, emphasizing the need for a clear distinction between the roles of complainants and accused in such proceedings.
Issues: Whether an accused in a complaint under section 138 of the NI Act is entitled to provide evidence via affidavit as per section 145 of the Act.
Ratio Decidendi: The court held that the omission of the word 'accused' in section 145 of the NI Act was intentional, and the legislative framework does not permit the accused to provide evidence via affidavit. The court reaffirmed the precedent set by the Supreme Court in Mandvi Cooperative Bank Limited vs. Nimesh B. Thakore, which concluded that the right to give evidence on affidavit is limited to the complainant.
Final Decision: The petitions were dismissed, and the court directed the Metropolitan Magistrate to expedite the trial process.
JUDGMENT
N. J. Jamadar, J. - Rule. Rule made returnable forthwith. With the consent of the learned counsel for the parties, heard finally.
2. The following question of law is sought to be raised in all these petitions, which arises in the backdrop of almost identical facts.
3. The bare minimum facts required to be noted to determine the aforesaid question of law can be summarized as under:-
4. The petitioners, thereafter, tendered an affidavit in lieu of examination in chief of petitioner No. 2. The respondent No. 2-complainant objected to the leading of evidence on an affidavit by the accused on the premise that the accused has no right to adduce evidence by way of affidavit under section 145 of the NI Act, 1881.
5. By the impugned order, the learned Metropolitan Magistrate declined to accept the evidence of the accused on an affidavit, while granting liberty to the accused to examine himself on oath in the witness box.
6. Being aggrieved, the petitioners-accused have invoked writ jurisdiction.
7. The substance of the petition is that if viewed in the light of the object of insertion of the provisions contained in section 143 to 147 of the NI Act, 1881, by Act, 55 of 2002, the accused also has a right to adduce his evidence on an affidavit. The learned Metropolitan Magistrate was in error in declining to accept such evidence on affidavit by placing reliance on the decision of the Supreme Court in the case of Mandvi Cooperative bank Limited vs. Nimesh B. Thakore, (2010) 3 Supreme Court Cases 83 as the subsequent judgment of the Supreme Court in the case of Indian Bank Association and Ors. vs. Union of India and Ors., AIR 2014 Supreme Court 2528 had further expanded the scope of provisions contained in section 145 of the NI Act, 1881, with a view to give impetus for expeditious conclusion of the proceedings under section 138 of NI Act, 1881 and the said decision was not properly construed by the learned Magistrate. Thus, to advance the object of the provisions contained in sections 143 and 145 of the NI Act, 1881, the petitioners/ accused deserve to be permitted to adduce the evidence on an affidavit.
8. I have heard Mr. Mangesh Patel, learned counsel for the petitioner, Mr. S.R. Agarkar, learned APP for the State and Mr. Jatin Karia (Shah), learned counsel for respondent No. 2.
9. At the outset, Mr. Karia, learned counsel for respondent No. 2 submitted that the aforesaid question sought to be raised by the petitioner/accused is no longer res integra. The question stands firmly concluded against the accused by the decision of the Supreme Court in the case of Mandvi Cooperative bank (supra). Moreover, this Court in the cases of SBI Global Factors Limited vs. The State of Maharashtra and Ors., 2021 SCC OnLine Bom 365 and Nitin Shriram Sabe vs. Prakashrao Keshavrao Deshmukh,Cri. WP.No. 718 of 2022, has repelled the endeavour of the accused, who are facing the prosecution under section 138 of NI Act, to reopen the issue on the ground of subsequent judgment in the cases of Indian Bank Associati
Indian Bank Association v. Union of India
Prabhudas Panjainmal Rice and Dal Mill vs. Avon Trade Link, Shakti Nagar, Katni
The right to provide evidence via affidavit under section 145 of the Negotiable Instruments Act, 1881 is exclusively granted to the complainant, and the accused does not possess this right.
The accused is not entitled to provide evidence via affidavit under the Negotiable Instruments Act; such a right is exclusively reserved for the complainant to ensure a fair trial.
In proceedings under the Negotiable Instruments Act, the accused cannot provide evidence via affidavit and must request in writing to testify, adhering to strict procedural compliance.
Advocates appeared :For the Appellant : Yashpal Thakur, Mukund Pandya For the Respondent : Amit Palkar, Mukesh Modi
The court established that under Section 145 of the Negotiable Instruments Act, only complainants can provide evidence via affidavit, not the accused.
An accused in a proceedings under Section 138 of the Negotiable Instruments Act cannot be permitted to file an Affidavit-of-Evidence in lieu of Examination-in-Chief.
The central legal point established in the judgment is the admissibility of the accused's evidence on affidavit in a Section 138 proceeding under the Negotiable Instruments Act, 1881, and the nature ....
Accused facing trial in a complaint under the provisions of the Negotiable Instruments Act are not competent to tender their evidence through affidavit.
Dishonour of cheque – There is no necessity to recall and re-examine complainant after summoning of accused, unless Magistrate passes a specific order as to why complainant is to be recalled.
The right to cross-examine the complainant under Section 145(2) of the NI Act is absolute and cannot be denied based on the accused's failure to disclose a specific defense; the trial court must allo....
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