INTRODUCTION

With the kind blessings of the Almighty above and great motivation of Hon'ble Mr. Justice Prakash Krishna, ri !handra "hal rivastava, #istrict Judge, Allahabad and all Judicial $fficers of the Allahabad Judgeshi%, a small effort in the field of the &egotiable 'nstruments Act has been made to collect and com%ile im%ortant cases of Hon'ble u%reme !ourt and various High !ourts on the sub(ect. ections )*+ to ),-, !ha%ter ./'', 0as inserted in the &egotiable 'nstruments Act, )++) by an Amending Act, Act 11 of )2++. 3hese sections came into force 0.e.f. -2.*.)2+2. 3hese sections %rovide for s%eedy dis%osal of cases relating to dishonoured che4ues. "y the incor%oration of these %rovisions in the &egotiable 'nstruments Act, dealing by 0ay of che4ues in 'ndia has gained confidence amongst the businessmen community. 3hese %rovisions deals 0ith %rocedure, trial, cogni5ance, defence and %unishment relating to offences of dishonour of che4ues. #ishonour of a che4ue is by it self not an offence u6s )*+ of &egotiable 'nstruments Act. 3o come 0ithin the ambit of offence in such a case follo0ing elements have to be fulfilled 7 ). #ra0ing the che4ue. -. Presentation of the che4ue to the "ank. *. 8eturning the che4ue un%aid by the dra0ee "ank. ,. 9iving notice in 0riting to the dra0er of the che4ue demanding %ayment of the che4ue amount. :. ;ailure of the dra0er to make %ayment 0ithin ): days of the recei%t of notice. 3he offence of dishonour of che4ue has been made cogni5able only on a 0ritten com%laint by the %ayee or holder in due course. ections )*+ to ),< of &egotiable 'nstruments Act as inserted by the Amendment Act -==-, further lay do0n a kind of com%lete !ode for trial of offences under the &egotiable 'nstruments Act.

3hus, if the %rovision of &egotiable 'nstruments Act s%ecially sections )*+ to ),< are follo0ed strictly by the !ourts, a large number of such cases 0ill reach their final fate 0ithin a fair and reasonable time. 3hese %rovisions have been incor%orated 0ith a vie0 to encourage the culture of use of che4ues and enhancing credibility of the 'nstrument. We have made every sincere attem%t in com%iling the case la0 relating to &egotiable 'nstruments Act and %rinci%les laid therein. We are also e>tremely grateful for the guidance given to us by our res%ected #istrict Judge. We crave the indulgence of readers for any mistake that might have inadvertently cre%t in s%ite of our best effort to avoid them.

#ate 7 1.:.-=)=.

SMT. CHHAYA NAIN, A.C.J.M.,ALLAHABAD. VIKASH KUMAR, J.M., ALLAHABAD.

Last moments addition: DISHONOUR OF CHEQUES, NOW, PAY MORE FOR DELAY A "ench com%rising !hief Justice K.9. "al Krishnan and Justice P. athasivam and J. M. Panchal during the hearing the section )*+ case bet0een #amodar . Prabhu and aiyad "aba ?al on Monday dated :, May -=)= took this radical ste% through a %ioneering (udgment 0hich aims to curb the tendency amongst defaulters to sit over the amount tendered through a bounced che4ue, laid do0n guidelines for early settlement in che4ues dishonour of che4ues u6s &.'.Act. 3he %enalty for delay settlement of the che4ues amount, after conviction in the trial !ourt 0ould rise steadily from )=@ in #istrict !ourt, ):@ in High !ourts to a 0ho%%ing -=@ in the u%reme !ourt. 3he "ench observed that there had been an enormous rush of cases after che4ue bounce 0as made a %enal offence in )2+2, follo0ed by the amendment in -==- %roviding for summary trial for early resolution of the dis%ute. 'n most cases, the !ourts s%ent a lot of time issuing notices and summoning the accused, and 0hen the time comes to deliver the verdict, the %arties reach a com%romise and seek com%ounding of offences, the "ench said. "y !ourtesy

The Times ! I"#i$ %

We#"es#$&, M$&, ', ()*).

Topic Index
Chapters 1. Condonation of delay :(Sec. 1 !" 14# N.I. $ct%
When can be condoned When cannot be condoned #.Notice (de&and notice%: (Sec. 1 ! N.I. $ct% When served When not served . '(idence on $ffida(it: (Sec. 14) N.I.$ct% Affidavit for u/s 200 Cr ! C Affidavit for e#a$ination in chief 4. Co&po*nding of offence When co$%ounded &'ec 147 ( ) Act*When Can not be co$%ounded ). P*nish&ent (Sec. 1 !" 14 N.I. $ct% A%%ea+ a,ainst ac-uitta+ 'uitab+e sentence .ode of recover/ of fine fro$ accused 0e+ease of accused on %robation +. Proced*re: Sec. 14 N.I.$ct. 'u$$ari+/ 2ria+ 20 21 - 24 25 26 #! 1" 14, 15 1+ - 1, 16, 17, 18 19 #- - #7 8, 9,10 11, 12 1 -1) 4,5 6,7 ! - 1#

Page Nos. 4-7

1eath of accused as revisionist in a%%ea+ - 27

&'ec 262 to 265 Cr ! C* 'ubstituted service-e#%arte Without service of su$$ons 3arrant of arrest and %rocess u/s 82-8" Cr ! C shou+d not be issued Mode of service of summons )ssuin, notice strai,ht 3a/ b/ 3a/ of %a%er %ub+ication 7. .etrospecti(e effect/ Prospecti(e effect !. 0*risdiction ,. Cogni1ance ( Sec. 14# N.I. $ct% 'u$$onin, of accused on %hotoco%ies 0e%eated %resentation of che-ue Co$binin, cause of action 1-. Co&plaint (2/s 141 N.I. $ct% A,ainst Co$%an/ 2hrou,h Co$%an/ 11. Co&plaint thro*gh $*thorisation 1#. Che3*e to4ards Sec*rity" any de5t or other lia5ility (Sec. 1 , N.I.$ct% 1 . 6iscellaneo*s (ona%%earance of Co$%+ainant 4ar on second tria+ 1ischar,e a%%+ication 5ndorse$ent refused -

28 - "0 "1

"1 # "" 4" ) +" 7 ! - 4# !" , 40 41 42 4 - )4" - 48 49 - 50 )1 - )

)4 - )7 )! - 77 58 - 60 61 62 6"

"

Account c+osed/'to% %a/$ent 'i,nature of Co$%+ainant for 5#%ert 6%inion Cuttin, on Che-ue 5ndorse$ent on Che-ue 3ithout 7no3+ed,e of co$%+ainant 1is%uted 'i,nature 8oss of Che-ue 1eath of %erson issuin, che-ue Co$%+aint fi+ed b/ !rivate !art, for fa+se co$%+aint so cause notice to co$%+ainant is i++e,a+ Co$%+ainant a+read/ ta7en recourse Arbitration'ec 155 Cr ! C not $aintainab+e A+teration of dates on Che-ue 1ifference in a$ounts $entioned in 3ords and fi,ures on Che-ue Who can fi+e Co$%+aints 4ouncin, of Che-ue is an individua+ +iabi+it/ -

64 65 66 67 68 69 70

71 72 7" 74 75 76 77

Chapter -1.

Condonation of 7elay 8i&itation:

9hen can 5e Condoned: 1 1ate of recei%t of infor$ation fro$ 4an7 is e#c+uded to count the %eriod of thirt/ da/s 2008 Cri 8 9 1246 Case referred : &2006* 9 'CC "40 ; &2005* 4 'CC 417 2 1" 1a/s de+a/ in fi+in, co$%+aint su%%orted b/ affidavit, <u,e a$ount invo+ved , e#%ressed difficu+ties 2008Cri 8 9 1545 Case referred :1998 Cri 8 9 906&A !* " !eriod of one $onth for fi+in, co$%+aint fro$ date i$$ediate+/ fo++o3in, the date on 3hich %eriod of 15 da/s fro$ date of recei%t of notice b/ dra3ee e#%ired 2005 Cri 8 9 1095 Case referred: A)0 1999 'C 1090 'a7et )ndia 8td vs )ndia 'ecurities 8td A)0 1999 'C 1609 'i+ )$%ort = ' A >s 5#i$ Aides 'i+7 5#%orters 4 2he da/ 3hen cause of action arises 3ou+d e#c+uded and +ast da/ inc+uded, on bein, ho+ida/ then the ne#t co$in, da/ 3i++ be counted 2004 Cri 8 9 26"6 Case referred: 1999 Cri 8 9 1822 'C 'a7et )ndia 8td vs )ndia 'ecurities 8td 1999 Cri 8 9 2276 'C 'i+ )$%ort = ' A >s 5#i$ Aides 'i+7 5#%orters 5 4urden +ies on the co$%+ainant to satisf/ b/ sufficient cause to condone the e#tensive %eriod for fi+in, a co$%+aint

2008Cri 8 9 &(6C* 947 ?A= 6 A%%+ication for reca++in, order is %endin, before the 'essions Court A$ended %rovision to condone de+a/ in fi+in, co$%+aint 3ou+d be a%%+icab+e 3hen case 3as sti++ %endin, 2006 Cri 8 9 19" Case referred : A)0 1999 'C 1090 A)0 1981 'C 1106 7 1ate $entioned b/ ban7 about dishonour of che-ue is to be e#c+uded for countin, %eriod of +i$itation 2009 Cri 8 9 14"4 Case referred 1999 Cri 8 9 1822 A)0 1972 'C 129" 8 !a/ee has ri,ht to sent che-ue to ban7 in nu$ber of ti$es he %+eases durin, %eriod of its va+idit/ 8i$itation %eriod start to run fro$ date of +ast dishonour 2009 Cri 8 9 154 Case referred: 1995 Cri 8 9 1"84 &@era+a* &A 4 * A)0 1998 'C "04" 'C 2000 Cri 8 9 2921 A++

9hen can not 5e condoned 1 " 1a/s de+a/ in fi+in, co$%+aint canBt be considered 3ithout notice to accused 2007 Cri 8 9 482 2 Ac-uitta+ of accused on basis of +a3 then in force %ro%er-canBt be set aside 3hen co$%+ainant has not stated a satisfactor/ reason for condonin, de+a/ 2005 Cri 8 9 1644 Case 0eferred : A)0 200" 'C 24"4 'hiv 'ha7ti Coo%erative <ousin, 'ociet/ vs '3araC 1eve+o%ers " Condonation of de+a/ is not %er$itted u/s 47" Cr ! C 3ithout ,ivin, notice to the %erson 3ho is %rosecuted 2008 Cri 8 9 &(6C* 947 &?A=* 4 Co$%+aint fi+ed after e#%ir/ of %eriod about one /ear .a,istrate ta7in, co,niDance for condonin, de+a/ in vie3 of a$ended section 142 &b*- not %ro%er, 142 &b* does not have retros%ective effect 2007 Cri 8 9 502 Case referred: &2005* 4 'CC 417 1999 Cri 8 9 2276 1998 Cri 8 9 4066 A)0 2002 'C 1715 5 6ne 1a/ de+a/ in fi+in, co$%+aint canBt be condoned b/ a%%+/in, 142 a$ended section retros%ective+/ 2006 Cri 8 9 "411 6 After service of notice co$%+aint 3as not fi+ed 6ne $onth %eriod of de+a/ is not condoned because no a%%+ication of de+a/ condonation is fi+ed 2004 Cri 8 9 1687 7 A$ended 'ection 1"8 &b* $a7in, %eriod of 15 da/s into "0 da/s, said a$end$ent bein, %ros%ective in nature and de$and $ade after e#%ir/ of 15 da/s %eriod - 1is$issa+ of co$%+aint %ro%er 2009 Cri 8 9 "809

Case referred : A)0 2008 'C 8099 8 6ne $onth %eriod of +i$itation strai,ht fro$ date of service of notice - (ot %ro%er Co$%+aint 3as barred b/ +i$itation 2007 Cri 8 9 "854 9 Co$%+aint not fi+ed on basis of notice 3ithin "0 da/s, after 15 da/s of service of notice - Co$%+aint ti$e barred 2008 Cri 8 9 2172 Case referred A)0 2005 'C 4284 A)0 2001 'C ""72 'C A)0 2000 'C 2946

Chapter - #.

7e&and Notice -Sec. 1 ! N.I. $ct

(otice 3hen served : 1 (otice to be read as a 3ho+e )n notice no che-ue a$ount de$and is $ade it 3ou+d fa++ of its +e,a+ re-uire$ent 2008 Cri 8 9 452 'C Case referred : A)0 200" 'C 4689 A)0 2000 'C 828 2 5ndorse$ent b/ %ost$an that refusa+ b/ the a%%+icant - %resu$ed that notice 3as sufficient+/ served 2005 Cri 8 9 "0"5 Case referred: 2005 Cri 8 9 127 A)0 2005 'C 109 " 6n+/ bounced che-ue a$ount 3as $ade in de$and notice, no other a$ount or +iabi+it/ 3as inc+uded is +e,a++/ va+id notice 2008 Cri 8 9 &(6C* 950 <! 4 Che-ue a$ount of 0s 50,000/- notice ,iven for one +ac co$%+aint has correct+/ $entioned in his co$%+aint the a$ount of this che-ue and further sho3n in his affidavit in his e#a$ination in chief 'aid discre%anc/ as to a$ount of the che-ue in notice does not disentit+e the co$%+aint 2009 Cri 8 9 1228 Case referred A)0 2008 'C 1"25 &2008* 1 'CC 258 5 5-$ai+ sent b/ co$%+ainant to accused infor$in, hi$ about dishonour of che-ue 1e$and notice - no for$at is %rescribed- 3ou+d -ua+if/ to be notice conte$%+ated u/s 1"8 ( ) Act 2009 Cri 8 9 "804 6 '%ecif/in, %eriod of 8 1a/s shorter than 15 da/s for $a7in, %a/$ent cannot be he+d to be i++e,a+ 3hi+e %rovision of 'ec 1"8, no3here %rovides that notice shou+d %rescribed %eriod of 15 da/s for $a7in, %a/$ent 2010 Cri 8 9 1019

Case referred 2008 Cri 8 9 452 1999 Cri 8 9 2010 .adras 7 )f an/ %eriod or no %eriod is $entioned in notice as %rescribed in section 1"8 %roviso &C* notice sha++ not be inva+id on that account 2009 Cri 8 9 154 Case referred : 1999 Cri 8 9 2010 .adras 1998 Cri 8 9 "27" &! E <* 8 1e$and notice sent to accused throu,h advocate, counse+ fai+ed to %ut his si,nature on certif/in, sa$e as a true co%/ it cannot be said to be inad$issib+e in evidence 2005 Cri 8 9 &(6C* 148 @era+a Case referred : A)0 1990 'C "96 9 !a/ee not fi+in, co$%+aint after service of first notice of de$and on dra3er cannot issue second notice of de$and to dra3er and fi+e co$%+aint thereafter 2010 Cri 8 9 12"7 Caser referred : A)0 2009 'C 15"8 &2005* 4 'CC 417 A)0 1998 'C "04" 1998 Cri 8 9 4066 10 Aa# statin, about dishonour of che-ue de$andin, %a/$ent of $one/ 3ithin 15 da/s and it contained %hotoco%/ of bounced che-ue and refusa+ endorse$ent of 4an7- no reference of Aa# $essa,e in the co$%+aint -uestion as re,ard as ,enuineness of Aa# $essa,e, 3hether Aa# $essa,e 3as sent b/ dra3ee, 3hen it 3as sent and 3hen it received in such circu$stances are dis%uted -uestion of fact can be decided at trai+ on basis of evidence - %roceedin, cannot be -uashed 2005 Cri 8 9 4492 Case referred &2005* 4 'CC 417 2004 Cri 8 9 4609

10

2004 Cri 8 9 4874 11 'ervice of notice - is sine -ua non for +aunchin, %rosecution -Che-ue 3as issued on beha+f of co$%an/- (oticie Coint+/ addressed and sent to .anan,in, 1irecter of the co$%an/, to the co$%an/ and to the fir$ in one enve+o%- 3as returned b/ %ost$an as refused - Wou+d be dee$ed to be du+/ served- 0efusa+ to acce%t is a+3a/s considered as ,ood service - !resu$%tion of service of notice cannot be rebutted b/ accused .ana,in, 1irected b/ $ere denia+ in his state$ent u/s "1" Cr ! C 2008Cri 8 9 "770

11

Notice 4hen not ser(ed : 1 Ac7no3+ed,e$ent of notice 3hen not received b/ co$%+ainant and actua+ date of service of notice cou+d not $entioned in co$%+aint Co$%+aint is not $aintainab+e 2009 Cri 8 9 154 2 Ai+in, co$%+aint on basis of subse-uent dishonour and conse-uent notice 3ithout even referrin, to ear+ier dishonour and conse-uent notice not %er$issib+e 2009 Cri 8 9 "207 Case referred: 2009 A)0 'CW 1044 A)0 1998 'C "04" " 'ervice of notice cou+d not be found to be not va+id $ere+/ because of endorse$ent of %osta+ %eon- $oreso, 3hen %osta+ %eon 3as not at a++ e#a$ined Fuashin, on ,round that notice 3as not served on the$ +iab+e to be set aside 2009 Cri 8 9 "26 Case referred A)0 2005 'C 109 A)0 1999 'C "762 4 (otice to dra3er of che-ue $andator/ 'ec 27 ?enera+ C+auses Act refers %resu$%tion that service of notice has been effected 3hen it is sent to the correct address b/ re,istered %ost =/s 1"8 !roviso &b* 3as evaded b/ accused or that accused %+a/ed ro+e in return or notice unserved - not necessar/ in vie3 of %resu$%tion of ?enera+ C+auses Act 2007 Cri 8 9 "214 Case referred A)0 2006 'C 2179 A)0 2005 'C 109 A)0 1999 'C "762 &1996* 7 'CC 52" A)0 1992 'C 1604 5 6nce notice under re,istered %ost and one notice under =!C 3ere sent b/ co$%+ainant to accused- notice under re,istered %ost had been returned b/ %ost$an b/ endorsin, fa+se re%ort 3hi+e notice b/ =!C 3as received b/ hi$ (otice sent b/ re,istered %ost thereb/ not served u%on

12

accused, accused denied service of notice b/ fi+in, affidavit 'a$e not controverted b/ fi+in, counter affidavit )t 3ou+d be dee$ed that there 3as no sufficient service 2006 Cri 8 9 ""12 Case referred : 2005 Cri 8 9 "029 &Ao++ * &2004* 1 Cri$es 567 &A!* 1995 Cri 8 9 560 &A!* 6 !ost dated che-ue - return of che-ue b/ 4an7 as un%aid - !a/ee fai+ed to ,ive notice in 3ritin, to co$%an/ and its officer re-uirin, the$ to $a7e %a/$ent 3ithin 15 da/s fro$ date of recei%t of notice )n absence of such notice, $ere fact that %ost dated che-ue issued b/ co$%an/ 3ere dishonoured b/ ban7 3ou+d not constitute offence u/s 1"8 ( ) Act 2010 Cri 8 9 72" Case referred A)0 2009 'C 428 A)0 2009 'C 2717 A)0 2009 'C 2780 7 Che-ue issued b/ accused %etitioner 3as a++e,ed+/ bounced - (otice issued b/ co$%+ainant to %etitioner 3as returned 3ith endorse$ent that he 3as absent for 6 to 7 da/s - Case of co$%+ainant 3as not that %etition 3as intentiona++/ avoidin, to receive notice or address ,iven 3as fictitious - 2hus , no notice 3as served u%on %etitioner -.andator/ re-uire$ent of 'ec 1"8 ( ) Act 3as not fu+fi++ed - Conviction of accused i$%ro%er 2010Cri 8 9 98" Case referred 2006 Cri 8 9 2897

1"

Chapter - . '(idence on affida(it Sec. 14) N.I. $ct

$ffida(it for */s #-- Cr.P.C. in co&plaint of N.I. $ct. 1. .ecording of e(idence at iss*ance of process" 6agistrate can dispense 4ith recording of s4orn state&ent of co&plainant and his 4itness 5y accepting their affida(its . #--4 Cri.8.0. 4)++ Case referred $I. #--1 SC ,)) Note :

See text attached in the last.

2 )n a case of dishonour of che-ue if .a,istrate ta7e co,niDance and %roceed u/s 200 Cr ! C it is an en-uir/ under %rovision of Cr ! C Co$%+ainant is entit+ed to fi+e affidavit in su%%ort of his evidence 2005 Cri 8 9 "827 " .a,istrate is dut/ bound to e#a$ine u%on oath the co$%+ainant and his 3itness before issuance of %rocess - even thou,h so+e$n affir$ation b/ co$%+ainant 3as %resent at foot of co$%+aint %rovision of 200 Cr ! C 3ou+d a%%+/ 2007 Cri 8 9 2207 Case referred 2006 'C 1796 2007 Cri 8 9 5"5 A)0 2004 'C 4674 A)0 2001 'C 567

14

$ffida(it for exa&ination in chief Sec. 14).N.I.$ct $ffida(it for exa&ination in chief : 1 $cc*sed has an a5sol*te right to ha(e the co&plainant and any of his 4itnesses s*&&oned for cross exa&ination" 5*t cann:t as; for exa&ination in chief again. 0T #-1- (1% SC #), Note :

See text attached in the last.

2 Co$%+ainant a+read/ sub$itted his affidavit his e#a$ination in chief it is not necessar/ to a,ain record his e#a$ination in chief 2006 Cri 8 9 208 Case referred 2005 Cri 8 9 1201 4o$ba/ &A4* A)0 2004 'C 2890 A)0 200" 'C 4195 A)0 2001 'C 676 A)0 1968 'C 647 " A%%+ication b/ accused for su$$onin, co$%+ainant for e#a$ination in chief, co$%+ainant cannBt be e#a$ined in chief in res%ect of $atters stated b/ hi$ in affidavit Court shou+d have a++o3ed a%%+ication for enab+in, accused to cross e#a$ine co$%+ainant and re-e#a$ination of co$%+ainant 2007 Cri 8 9 892 Case referred 2006 Cri 8 9 208 4o$ba/ 2005 Cri 8 9 1201 4o$ba/ 2001 Cri 8 9 4656 4 !rovision of section 145 ( ) Act %rovidin, for recordin, of evidence of co$%+ainant on affidavit is %ure+/ %rocedura+ in nature )t is retros%ective in o%eration )t 3i++ a%%+/ to co$%+aints %endin, on 6 2 200" i e on date of co$in, into force of a$ended %rovisions of sec 145 ( ) Act 2006 Cri 8 9 574 Case referred

15

A)0 2000 'C """5 A)0 1998 'C 1827 A)0 1994 'C 262" A)0 1990 'C 209 A)0 1958 'C 915

Note : $cc*sed has an a5sol*te right to ha(e the co&plainant and any of his 4itness s*&&oned for cross exa&ination" 5*t cannot as; for exa&ination- in -chief again. 6/s 6and(i Cooperati(e <an; 8td. =s. Ni&esh <. Tha;ore" 0T #-1- (1% SC #),.

Note : See text attached in the last.

16

Chapter - 4. P*nish&ent-9hen Can <e Co&po*nded 1 2echnica++/ %rovisions of sec "20 Cr ! C do not a%%+/ to offences not covered b/ )!C 'ec 147 ( ) Act Co$%oundin, 6ffence shou+d not nor$a++/ be denied )n this case <i,h Court confir$ the conviction but ' C set aside the conviction on basis of sett+e$ent bet3een %arties 2008 Cri 8 9 805 Case referred 2005Cri 8 9 4878 &2005* 10 'CC 6"2 &2004* 1" 'CC 494 2000Cri 8 9 467" &200"* 9 'CC 214 &2000* 1 'CC 762 2 0evision a,ainst conviction - Co$%ro$ise arrived at bet3een %arties - .atter can be co$%ounded at an sta,e in and after dis$issa+ of revision a%%+ication 2004Cri 8 9 "786 Case referred 1998 Cri 8 9 4424 200" Cri 8 9 2028 2002 Cri 8 9 90 1999 Cri 8 9 1825 1964 &1* C0i 8 9 152 " 'ec 1"8, 147 ( ) Act is co$%oundab+e even at revision sta,e )n vie3 of a$end$ent insertin, sec 147 3hich ca$e into force on 6 2 2008 !arties can co$%ound offence 3ithout an/ further -ua+ification or e$bar,o- 1ate of offence or first conviction is not re+evant 2005 Cri 8 9 4"1 Case referred &2000* 1 'CC 762 4 Conviction u/s 1"8 ( ) Act set aside in vie3 of the fact that dis%ute is sett+ed and a$ount due to co$%+ainant has been %aid 2004 Cri 8 9 "85" 'C

17

Case referred 2000 &1* 'CC 762 5 'ec 1"8, 147 ( ) Act is co$%oundab+e not3ithstandin, 3ith fact that sec "20 Cr ! C does not in ter$s a%%+/ to sec 1"8 - Co$%oundin, offence u/s "20 &1* - $ater need be %endin, before Court - %arties can enter into co$%osition even after verdict of ,ui+t/, conviction and sentence have beco$e fina+ and no %roceedin, are %endin, before an/ Court 2007Cri 8 9 1865 Case referred 2006 Cri 8 9 1922 &@era+a A4* 2004 Cri 8 9 "786 200" Cri 8 9 2028 1990 Cri 8 9 1599 6 !arties entered into a$icab+e sett+e$ent - Accused %aid a$ount he had ta7en as +oan fro$ co$%+ainant - Co$%+ainant 3aived co$%ensation a$ount i$%osed on accused b/ tria+ court b/ acce%tin, a$ount ant ,rantin, recei%t )n vie3 of co$%ro$ise -accused is entit+ed to be ac-uitted ?rantin, hi$ e#e$%tion surrenderin, 2009 Cri 89 1906 Case referred 2008 &1* 5A'2 C0) C - 201 &9<A0* 7 Act of 1881 bein, s%ecia+ statute, %rovisions of sec 147 of the Act 3i++ have over ridin, effect over %rovisions of Court re+atin, to co$%oundin, of offences - !arties sett+ed their dis%ute and $ade a%%+ication u//s 147 of the Act - offence can be a++o3ed to be co$%ounded even at a%%e++ate sta,e - conviction is +iab+e to be set aside in vie3 of co$%oundin, offences 2010 Cri 8 9 525 Case referred A)0 2008 &'C* 1005 A)0 2008 'C 716 2006 Cri 8 9 948 'C 0ef 2005 Cri 8 9 4878 0ef 8 5$%+o/ees 'tate )nsurance Act 'ec "9 - 5nforceab+e 1ebt8iabi+it/ to %a/ 5') contribution b/ e$%+o/eer - a statutor/ ob+i,ation -

18

and an enforceab+e 1ebt 3ithin $eanin, of sec 1"8 ( ) Act- Che-ue %aid to3ards contribution return for reason Be#ceeds a,ree$entB - notice u/s 1"8 issued to accused- subse-uent thereto 3ithin short s%an of ti$e accused %aid a$ount b/ 3a/ of de$and draft and $atter in re+ation to che-ue 3as sett+ed bet3een %arties- %+ea raised 3hether offence stands co$%ounded - ho+din, vie3 of %ecu+iar fact and circu$stances recordin, of ac-uitta+ is not %ro%er - 'ett+e$ent bet3een %arties can on+/ be recorded 2005 Cri 8 9 1080 Case referred 2002 Cri 8 9 4792 2000 Cri 8 9 4671 2000Cri 8 9 467"

19

P*nish&ent 9hen Cannot <e Co&po*nded 1 Co$%+ainant not 3i++in, to co$%ro$ise- %ra/ed for co$%oundin, of offence on ,round that a$ount due 3as de%osited in Court - cannot be a++o3ed2009 Cri 8 9 49" Case referred 2001 Cri 8 9 708 2 5$%+o/ees 'tate )nsurance Act 'ec "9 - 5nforceab+e 1ebt- 8iabi+it/ to %a/ 5') contribution b/ e$%+o/eer - a statutor/ ob+i,ation - and an enforceab+e 1ebt 3ithin $eanin, of sec 1"8 ( ) Act- Che-ue %aid to3ards contribution return for reason Be#ceeds a,ree$entB - notice u/s 1"8 issued to accused- subse-uent thereto 3ithin short s%an of ti$e accused %aid a$ount b/ 3a/ of de$and draft and $atter in re+ation to che-ue 3as sett+ed bet3een %arties- %+ea raised 3hether offence stands co$%ounded - ho+din, vie3 of %ecu+iar fact and circu$stances recordin, of ac-uitta+ is not %ro%er - 'ett+e$ent bet3een %arties can on+/ be recorded 2005 Cri 8 9 1080 Case referred 2002 Cri 8 9 4792 2000 Cri 8 9 4671 2000Cri 8 9 467" " Co$%+ainant not inc+ined to enter into an/ co$%ro$ise 3ith accused -co$%oundin, essentia++/ invo+ves co$%ro$ise or a,ree$ent there can not be one 3a/ traffic - offence cannot be co$%ounded if co$%+ainant is not 3i++in, 2008Cri 8 9 "770 Case referred 2007 C8C 827 A)0 2007 &(6C* 975 4o$ba/ A)0 2002 'C "014

20

Chapter -). P*nish&ent -$ppeal against $c3*ittal 1 A%%e++ate Court has fu++ %o3er to re-a%%reciate evidence - but 3ithout co$in, to definite conc+usion that findin,s ,iven b/ tria+ Court are %erverse - )t cannot substitute the findin,s of tria+ Court b/ ta7in, a tota++/ different %ers%ective- co$%+aint of dishonour of che-ue -1is$issed b/ tria+ Court for 3ant of %roof of advance$ent of $one/ b/ co$%+ainant - <i,h Court 3ithout ho+din, that findin, of tria+ Court is %erverse and on tota++/ different %ers%ective convertin, ac-uitta+ into conviction -6rder unsustainab+e 200" Cri 8 9 411 'C Case referred A)0 1976 'C 8"2 A)0 1974 'C 286 2 Co$%+ainant case that he has sent notice under re,istered %ost to accused - res%ondent, 3hich 3as returned 3ith endorse$ent refusedthere is endorse$ent refused but there is no si,nature of an/ of 3itness before 3ho$ accused %erson refused to ta7e notice or an/ si,nature $ade b/ accused on said +etter - Co$%+ainant has not e#a$ined %osta+ %eon 3ho 3ent to de+iver said +etter - Co$%+ainant has further said in his evidence that house for 3hich che-ue 3as ,iven to hi$, did not be+on, to hi$- Co$%+ainant has fai+ed to %rove his case and a+so fai+ed to co$%+/ %rovision of sec 1"8 &c* - 6rder of ac-uitta+ is therefore %ro%er 2009 Cri 8 9 "768 " A%%ea+ a,ainst ac-uitta+ - A%%e++ate Court has fu++ %o3er to revie3 the evidence u%on 3hich order of ac-uitta+ 3as founded- if t3o conc+usion are %ossib+e ,Court 3ou+d dec+ine to interfere - ho3ever , if vie3 ta7en b/ tria+ court is unreasonab+e or Cud,$ent $anifest+/ erroneous- Court 3ou+d set aside ac-uitta+ 2008Cri 8 9 "770 A)0 2007 &(6C*975 4o$ba/ A)0 2002 'C "014 4 Ac-uitta+ of accused b/ <i,h Court- <i,h Court, ho3ever, found to have not e#a$ined %robative va+ue of re+evant docu$ents %roduced b/ co$%+ainant- an acce%tabi+it/ of evidence of co$%+ainant 3as a+so not e#a$ined- 6rder of ac-uitta+ set aside- .atter re$itted for considerin, afresh 2009 Cri 8 9 2788 'C

21

P*nish&ent -S*ita5le Sentence 1 2ota+ a$ount covered b/ che-ue is invo+ved a$ount of 0s "0,000/- -'aid a$ount had not been %aid either durin, tria+ or subse-uent+/ i$%osition of fine 0' 1200/- 3as to $ea,re - $atter re$anded to .a,istrate to %ass suitab+e sentence 2006 Cri 8 9 "806 Case referred A)0 2002 'C 681 A)0 1999 'C "762- .a,istrate can a3ard an/ su$ as co$%ensation 3ou+d be the reasonab+e a$ount "57&"* Cr ! C &1998* 4 'CC 551 2 Court $a/ enforce an order to %a/ co$%ensation b/ i$%osin, a sentence in defau+t2002Cri 8 9 100" 'C )t is o%en to a++ Courts in )ndia to fo++o3 the said course A)0 1988 'C 2127 Case referred A)0 2001 'C 567 " !o3er to i$%ose sentence of fine - 'C is of the o%inion - 'ub-section &2* of 'ec "57 Cr ! C 3ou+d be attracted even 3hen a%%e++ant 3as directed to %a/ co$%ensation - 2he a%%e++ate ho3ever 3hi+e sus%endin, the sentence 3as entit+ed to %ut the a%%e++ant on ter$s <o3ever no such ter$ cou+d be %ut as a condition %recedent for entertainin, the a%%ea+ 3hich is a constitutiona+ and statutor/ ri,ht -2he a$ount of co$%ensation $ust be a reasonab+e su$ - Court 3hi+e fi#in, such a$ount $ust have re,ard to a++ re+evant factors inc+udin, the one referred in sub-sec &5* of "57 of Cr ! C - (o unreasonab+e a$ount of co$%ensation can be directed to %aid 2007 Cri 8 9 2418 4 'us%ension of sentence %endin, a%%ea+ - A%%e++ate Court can direct to %a/ co$%ensation as condition %recedent for sus%endin, sentence 2006 Cri 8 9 "65" Case referred

22

2002 Cri 8 9 "95 &A!* A)0 2001 'C 659 5 'entence of fine in che-ue dishonour case -fine e#ceedin, 0s 5000/- can be i$%osed b/ 9udicia+ .a,istarte Airst c+ass W 5 A 6 2 200" - 8i$itation sti%u+ated in section 29 &2* of Cr ! C stands obviated b/ a$ended %rovision of sec 14" ( ) Act - Co$%ensation - 'entence of fine a+so i$%osed a+on, 3ith sentence of i$%rison$ent - certain su$ of fine , if re+eased, can be directed b/ the tria+ Court to be %aid as co$%ensation to co$%+ainant- A%%e++ate Court 3hi+e sus%endin, sentence can order accused to de%osit 25G of a$ount invo+ved in che-ue as fine or co$%ensation - ho3ever , no %a/$ent sha++ be $ade to co$%+ainant before decision of a%%ea+ 2006 Cri 8 9 1554 Case referred A)0 2001 'C 567 6 'entence- Court after considerin, evidence on record found accused ,ui+t/ of offence - <o3ever i$%osed sentence of fine of 0s 5000/- on+/ - not %ro%er - order $odified and accused 3as sentenced to %a/ fine of che-ue a$ount in addition to 0s 5000/2004 Cri 8 9 4792 Case referred 2004Cri 8 9 "85" 2001 Cri 8 9 950 7 'us%ension of sentence - %endin, a%%ea+ - offence of dishonour of che-ue - i$%osition of condition b/ a%%e++ate Court to de%osit 50G of che-ue a$ount for sus%endin, order directin, %a/$ent of co$%ensation- %ro%er 'ec "57 Cr ! C 6rder to %a/ co$%ensation offence of dishonour of che-ue - %unish$ent in defau+t of %a/$ent in co$%ensation can be i$%osed 2006 Cri 8 9 606 Case referred A)0 2002 'C 681 A)0 2001 'C 659 A)0 2001 'C 676 8 Co$%ensation instead of substantive sentence of fine - 3hen can be a3arded -A++e,ed 3ithdra3 of $one/ fro$ Coint account b/ res%ondent- %artner after dis%ute arisin, 3ith a%%e++ant %artner - che-ue

2"

issued b/ res%ondent %ursuant to co$%ro$ise 3as dishonouredres%ondent ad$itted his +iabi+it/ to e#tent of 0s 7 +a7hs - Che-ue had been issued in dischar,e of debt- %+ea b/ accused that he si,ned che-ue under threat not tenab+e - cu+%abi+it/ of accused 3as estab+ished ho3ever there 3as no char,e of fraudu+ent action a,ainst hi$-he a+so had %robab+e defense as account 3ere /et to be sett+ed- in circu$stance, ,rant of co$%ensation of 0s 7 +a7hs instead of fine of 0s 5000/- 3ou+d be %ro%er 2010 Cri 8 9 2951 Case referred A)0 2006 'C 1117 A)0 2002 'C 2710 A)0 2002 'C 2811 9 'entence - Che-ue issued b/ .ana,in, 1irector of co$%an/ to its e$%+o/ee under industria+ sett+e$ent, 3as dishonoured - e$%+o/ee 3as fi,htin, for his ri,ht since +on, and 3as co$%e++ed to initiate cri$ina+ %roceedin,s - $atter cannot be treated +i,ht+/ - as %a/$ent due under che-ue 3as $ade subse-uent+/, accused directed to %a/ co$%ensation of 0s 20,000/- to co$%+ainant 2008Cri 8 9 "770 Case referred A)0 2007 &(6C* 975 4o$ba/ A)02002'C "014 10 'entence - (o co$%e++in, circu$stance avai+ab+e 3hich 3ou+d Custif/ i$%osition of an/ deterrent substantive sentence of i$%rison$ent-8enienc/ can sho3n on -uestion of sentence - ho3ever Courts cannot i,nore %+i,ht of co$%+ainant 3ho had been co$%e++ed to fi,ht three rounds of +e,a+ batt+e and to 3ait fro$ 2004 for redressa+ of his ,enuine ,rievances - Co$%ensation un+ess a$ount is c+ai$ab+e in civi+ suit - direction under sec "57 &1* or "57 &"* of Cr ! C for %a/$ent of co$%ensation cannot be issued - 5ntit+e$ent - %a/ee or ho+der suffers +oss b/ reason of dishonour of che-ue for 3hich accused has been sentenced- co$%+ainant entit+ed for co$%ensation -A3ard for co$%ensation direction can be ,iven for %a/$ent of interest thereon- +iab+e to %a/ interest u/s 80 a+so covers a che-ue -1irection for %a/$ent of interest - fi#ation of rate of interest - Court

24

can ascertain +oss 3hich co$%+ainant 3ou+d suffer on account of de+a/ in %a/$ent and direct a%%ro%riate rate of interest 2007 Cri 8 9 2590 Case referred &2004 * 8 'CC 251 A)0 200" @er 21" &2002* " @er 8 2 852 11 Accused had ta7en +oan of 0s 85,000/-fro$ co$%+ainant - accused hi$se+f in re%+/ notice ad$itted that he issued b+an7 che-ue b/ 3a/ of securit/ for %ro$%t re%a/$ent of su$ of 0s 85,000/- - accused %+eaded dischar,e of +oan of 0s 85,000/- no evidence in for$ of recei%t or endorse$ent 3as %roduce b/ hi$- conviction of accused is %ro%er 'entence of t3o $onths si$%+e i$%rison$ent 3ou+d $eet end of Custice 2010Cri 8 9 814 Case referred A)0 2009 'C 1518 A)0 2008 'C 1"25 12 'entence - a++e,ation that che-ue issued b/ accused for re%a/$ent of +oan 3as dishonoured - accused, %ett/ business facin, cri$ina+ %rosecution for 7 /ears - had %aid heft/ a$ount of co$%ensation as %ena+t/ - as directed b/ tria+ Court - <ad ear+ier not co$$itted an/ such or si$i+ar offence- substantive sentence of i$%rison$ent set aside'entence of fine of 1000/- and i$%osition of co$%ensation in su$ of 0s "5, 000/- $aintained 2010Cri 8 9 8"8 1" A3ard of co$%ensation cannot be ordered 3ithout bein, %receded b/ i$%osin, of sentence 2007 Cri 8 9 2502 Case referred A)0 2004 'C 1280

25

P*nish&ent -6ode of reco(ery of fine fro& acc*sed 1 'ec 1"8 ( ) Act 'ec 421, "57 Cr ! C -'entence - .ode of recover/ of fine fro$ accused - 1efau+t sentence a3arded - accused fai+in, to %a/ %ortion of fine is +iab+e to under,o defau+t sentence- A$ount +iab+e to be %aid to co$%+ainant as co$%ensation cannot be 3ithhe+d- recover/ of co$%ensation %a/ab+e to co$%+ainant ,ets %recedent over recover/ of fine to be credited to ,overn$ent 2006Cri 8 9 185" Case referred A)0 2002 'C 681 A)0 1988 'C 2127

26

P*nish&ent- .elease of acc*sed on pro5ation 1 !robation of offenders Act 'ection 4 &1* 'ec 6 &2* re+ease of accused on %robation - consideration of re%ort of re%ort of !robation 6fficer as envisa,ed u/s 62 - is condition %recedent- record sho3in, that no such re%ort 3as ca++ed b/ .a,istrate - to consider 3hether .a,istrate 3as correct +e,a++/ and factua++/ in re+easin, accused - suo $otu %o3er of revision under C0 ! C cou+d be invo7ed b/ <i,h Court not3ithstandin, revision at instance of co$%+ainant 3as not $aintainab+e -Aact that offender is first or /outhfu+ offender $a/ not b/ itse+f be sufficient to invo7e 'ec 4 &1* - !erson convicted of offence u/s 1"8 ( ) Act - it is not e#%edient to re+ease hi$ on %robation under sec 4 &1* of !robation of 6ffender Act 2009 Cri 8 9 170" Case referred 2005 Cri 8 9 "077 2005Cri 8 9 41"5 2000Cri 8 9 228" A)0 1974 'C 22""

27

P*nish&ent - 7eath of acc*sed as re(isionist in appeal 1. Sec. ,7. 4-1. ,4 Cr.P.C. con(iction -a%%ea+ a,ainst - offence of dishonour of che-ue - A%%e++ate Court reduce sentence and a$ount of fine - revision a,ainst b/ accused - 1urin, %endenc/ of revision revision, accused died - revision %etition 3ou+d survive death of accused- court can %ass a%%ro%riate order 3ith re,ard of sentence of fine 2006 Cri 8 9 "864 Case referred 1962 &2* Cri 8 9 506

28

Chapter-+. Proced*re Sec. #+# -#+) Cr.P.C. > 14 N.I. $ct S*&&arily Trial : 1 !endenc/ of +ar,e nu$ber of dishonour of che-ues, co$%+aints ste%s direction ,iven b/ 3hich de+a/ in dis%osa+ of co$%+aints can be curtai+ - Ai+in, of co$%+aints u/s 1"8 3ith . . /A . . -. . verifies the co$%+aints and $ar7ed the sa$e to the concerned . . / A . . for further %roceedin,s - 'ta,e of issuance or dec+inin, to issue the %rocess - 0ecordin, of the state$ent of co$%+ainant and other 3itnesses and their cross e#a$ination Ai#in, the date of ar,u$ent of co$%+ainant and accused -6rders for su$$onin, -A%%earance of accused &bai+* -<earin, for reca++in, of su$$onin, order - As7in, the accused re,ardin, his ,ui+t or notice u/s 251 Cr ! C - 6n his %+eadin, not ,ui+t, e#a$ine the and 3itnesses an d to %er$it their cross e#a$ination and recordin, state$ent of accused u/s 281 of Cr ! C and to as7 hi$ to +ead his defence evidence -Court $ust ado%t a++ %ra,$atic $ethods of service on the accused re%eated su$$ons be sent b/ e$%+o/in, a++ $ethods enc+udin, e-$ai+ to ensure service of su$$ons i e su$$on servicie throu,h s%eed %ost courier -(ot ,iven +on, dates -!rocess service a,enc/ attached to 1 9 and the <i,h Court to ensure effective contro+ -145 ( ) Act evidence on affidavit the evidence &e#a$ination in chief* of the co$%+ainant can be ,iven on affidavit and thereafter if the accused so desire he / she re-uest the Court to ca++ the co$%+ainant for cross e#a$ination 2005 Cri 8 9 1201 Case referred A)0 2004 'C "55 A)0 1996 'C 2""9 1995 Cri 8 9 1"84 @era+a &A4* 2 1ishonour of che-ue %rovision of su$$ari+/ tria+ sec 262 to 265 of

29

the Code are a%%+icab+e !rovisions of sec 259 re,ardin, 3arrant tria+ have no a%%+ication 2006 Cri 8 9 1988 Case referred 2004 Cri 8 9 664 2002 Cri 8 9 4"92 " 1ishonour of che-ue %rocedure case 3as tried as re,u+ar su$$on case thou,h it 3as triab+e su$$ari+/ u/s 14" ( ) Act .a,istrate tr/in, case and recordin, case ceased to e#ercise Curisdiction - his successor .a,istrate not re-uired to ho+d 1e nova tria+ as conte$%+ated u/s "26 &"* Cr ! C Case tried in su$$ar/ 3a/ b/ fo++o3in, %rocedure u/s 26" 264 Cr ! C are a+one intended to be e#c+uded fro$ %urvie3 of sec "26 &1* Cr ! C <e can act on basis of evidence recorded b/ his %redecessor and %roceed further fro$ sta,e of his ta7in, over the $atter 2007 Cri 8 9 122 Case referred 2005 Cri 8 9 1201 4o$ba/ 1998 Cri 8 9 24"9 0aC 1996 Cri 8 9 1057 0aC A)0 1992 'C 1219 4 Accused see7in, tria+ of offence as 3arrant case even tria+ of case had not be,un since $a#i$u$ %rescribed u/s 1"8 ( ) Act is t3o /ear i$%rison$ent a++e,in, offence u/ s 1"8 of t he Act cannot be tried as 3arred case in vie3 of the sec 14" &1* of the Act 2009 Cri 8 9 110 Case referred 2007 Cri 8 9 122 2006 Cri 8 9 1988 5 Ac-uitta+ of accused on ,round of absence of co$%+ainant on date of %ostin, of case and fai+ure to ta7e ste%s for %roceedin,s a,ainst accused u/s 82 -8" Cr ! C not %ro%er .oreover .a,istrate had not ta7en ste%s u/s 72- 79 Cr ! C before ac-uittin, accused 8earned .a,istrate ou,ht have dis$issed the case u/s 204 Cr ! C instead of ac-uittin, the accused 2005 Cri 8 9 4756 Case referred &2005* 1 @era+a 8 9 57

"0

&2005 * 1 @era+a 8 9 100" 6 A%%+ication for %roduction of no docu$ent fi+ed b/ co$%+ainant Co$%+ainant stated in cross e#a$ination that said docu$ent 3ere in %ossession of accused subse-uent+/ ta7in, %+ea that it 3as $ista7en state$ent ,iven b/ her - (o atte$%ts 3ere $ade to rectif/ the said $ista7en state$ent A%%+ication +iab+e to be reCected )t is 3e++ sett+ed the function of the cri$ina+ court is ad$inistrative of cri$ina+ Custice and not to count the errors co$$itted b/ the %arties to find out and dec+are 3ho a$on,st the %arties %erfor$ed better 'ec "11 Cr ! C if it sha++ be seen fro$ the fact of ever/ case 3hether the %art/ a%%+/in, is tr/in, to fi++ in +acuna it be so , then the a%%+ication u/s "11 ou,ht not be a++o3ed 2009 Cri 8 9 44" 7 2ria+ %rocedure - 3ord $a/ used in section 14" ( ) Act +eaves o%tion for .a,istrate to choose 3hether case is to be tried su$$ari+/ or as a su$$on case 'uch o%tion is not o%en for tria+ of cases under %ena+ Code 3hich are tried su$$ari+/ 2010 Cri 8 9 7"0 Case referred 2007 Cri 8 9 1;22 1996 Cri 8 9 1057 0aC A)0 1962 'C 690

"1

Proced*re- S*5stit*ted ser(ice - exparte Sec. 144" 1 ! N.I. $ct. 1 'ubstituted service of su$$ons to accused in cri$ina+ tria+ -is %er$issib+e - fact 3hether accused is char,ed for offence u/s 1"8 ( ) Act or )!C - )$$ateria+ 'ec 477 Cr ! C !resence of accused is a $ust !resence of accused ho3ever cou+d not be secured for considerab+e %eriod des%ite sufficient service of su$$ons to hi$- case a,ainst said accused can be s%+it u% in ter$s of ru+e -2 of Cri$ina+ 0u+e of !ractice &@arnata7a * 'ec 144, 1"8 ( ) Act- Accused cannot be %roceed e#%arte - no e#%arte decision re,ardin, ,ui+t of accused can be recordin, 2005 Cri 8 9 "700 Case referred 2004 &4* @CC0 2216: )80 2004 @ant 4"81 Proced*re :- 9itho*t ser(ice of s*&&ons 4arrant arrest and process of !#-! Cr.P.C. sho*ld not 5e iss*ed 1 6rder ta7in, co,niDance not interfered 3ith ho3ever 3ithout service of su$$ons 3arrant of arrest and %rocess u/s 82-8" Cr ! C 3as issued sa$e is +iab+e to be set aside Co$%+ainant sent the notice b/ re,istered %ost on correct address thus as %er section 27 of ?enera+ C+auses Act there is %resu$%tion that de$and notice had been du+/ served u%on the %etitioner 2009 Cri 8 9 4716

"2

6ode of Ser(ice of S*&&ons : (2/s 144 N.I. $ct%

1 (ot3ithstandin, an/thin, contained in the Code of Cri$ina+ !rocedure and for the %ur%oses of this Cha%ter, ?$ 6agistrate iss*ing a s*&&on to an acc*sed or a 4itness &ay direct a copy of s*&&ons to 5e ser(ed at the place 4here s*ch acc*sed or 4itness ordinary resides or carries on 5*siness or personally 4or;s@ for gain 5y speedpost or 5y s*ch co*rier ser(ices as are appro(ed 5y a Co*rt of Session.? 2 Where an ac7no3+ed,e$ent %ur%ortin, to be si,ned b/ the accused or the 3itness or an endorse$ent %ur%orted to be $ade b/ an/ %erson authoriDed b/ the %osta+ de%art$ent or the courier services that the accused or 3itness refused to ta7e de+iver/ of su$$ons has been received, the Court issuin, the su$$ons $a/ dec+are that the su$$ons has been du+/ served Note : For the service of notice of summons on the accused person, summons should be send through speed post/ courier and its receipts should be attached in the file. By resorting to the amended provision in this regard, the greatest hurdle to service of notice of summons on the accused persons may be removed. Recently the Supreme Court had an occasion to examine the provisions of section 1 !, 1 , 1 " # 1 $ %.&.

6/s 6and(i Cooperati(e <an; 8td. =s. Ni&esh <. Tha;ore" 0T #-1- (1% SC #),.
'ct along (ith their provisions in

Note : See text attached in the last.

""

Proced*re :- Iss*ing notice straight 4ay of paper p*5lication . 1 )ssuin, notice strai,ht 3a/ b/ 3a/ of %a%er %ub+ication cannot be said to be in co$%+iance 3ith statutor/ %rovisions of ( ) Act -Co$%+aint +iab+e to be -uashed 2006 Cri 8 9 &(6C* "69 &A!* 2 'u$$ons cou+d not be served on accused !roceedin,s bein, -uasi cri$ina+ in nature Court shou+d not avai+ $ode of %a%er %ub+ication %rovided under C ! C - s%+ittin, of a case is not %ro%er )n this case su$$ons cou+d not be served on co$%an/ and so$e of its officia+s Court cou+d have directed the co$%+ainant to ta7e a++ ste%s to effect service inc+udin, %rovisions of C!C b/ 3a/ of substituted service i e %a%er %ub+ication 6n non a%%earance of accused on such %ub+ication the accused cou+d be %roceeded e#%arte if it 3as found that accused %ersons or an/ of the$ 3ere ,ui+t/ of offence after tria+, the/ 3ou+d have been convicted b/ 3a/ of i$%osin, fine and order to %a/ co$%ensation and $a/ a+so be sentenced for i$%rison$ent, s%+ittin, of a case in res%ect of those accused %ersons 3as not %ro%er -A%%+ication for ac-uitta+ b/ so$e accused %ersons on ,round that case 3as s%+it u% in res%ect of co$%an/ and other accused and %resent accused - accused %ersons 3ere si,natories of the che-ue 2he/ cannot esca%e fro$ +iabi+it/ un+ess the/ %rove that offence 3as co$$itted 3ithout 7no3+ed,e and the had e#ercise a++ due di+i,ence to %revent the co$$ission of such offence 2005 Cri 8 9 1120 Case referred A)0 2000 'C 145 Ani+ <adas case

"4

Chapter- 7. .etrospecti(e effect/Prospecti(e effect 1 'ec 142 ( ) Act is substantive %rovision not retros%ective+/ 2008 Cri 8 9 "95" Case referred A)0 2008 'C 899 2 142 &b* ( ) Act not intended to o%erate retros%ective+/ 2008Cri 8 9 1"86 'C Case referred A)0 2004 'C 4674 A)0 1984 'C 87 " 142 &b* !rovision has co$e into effect durin, the %endenc/ of the %etition &revision* cou+d e#tend to the %endenc/ of this %etition 2008 Cri 8 9 47"8 Case referred 2006 Cri 8 9 19" 4 A%%+ication for reca++in, is %endin, before 'ession Court- A$ended %rovision to condone de+a/ in fi+in, co$%+aint 3ou+d be a%%+icab+e 3hen case 3as sti++ %endin, 2006Cri 8 9 19" Case referred A)0 1999 'C 1090 A)0 1981 'C 1106 5 Co$%+aint fi+ed after e#%ir/ of one /ear %eriod -.a,istrate ta7in, co,niDance for condonin, de+a/ in vie3 of a$ended section 142 &b* not %ro%er 142 &b* does not have retros%ective effect 1998 Cri 8 9 4066 Case referred 2007 Cri 8 9 502 &2005* 4 'CC 417 A)0 2002 'C 1715 1999 Cri 8 9 2276 6 6ne de+a/ in fi+in, co$%+aint cannot be condoned b/ a%%+/in, 142 a$ended section retros%ective+/

"5

2006 Cri 8 9 "411 7 A$end$ent 1"8 &b* $a7in, %eriod of 15 da/s into "0 da/s, said a$end$ent bein, %ros%ective in nature and de$and $ade after e#%ir/ of 15 da/s %eriod -1is$issa+ of co$%+aint %ro%er 2009 Cri 8 9 "809 Case referred A)0 2008 'C 869 8 !rovision of section 145 ( ) Act %rovidin, for recordin, of evidence of co$%+ainant on affidavit - )s %ure+/ %rocedura+ in nature )t is retros%ective in o%eration )t 3i++ a%%+/ to co$%+aints %endin, since 200" i e on dated of co$in, into force of a$ended %rovision of section 145 ( ) Act 2006Cri 8 9 574 Case referred A)0 2000 'C """5 A)0 1998 'C 1827 A)0 1994 'C 262" A)0 1990 'C 209 A)0 1958 'C 915 9 'ec 1"8, 142 ( ) Act - 'ec 142 as a$ended has retros%ective effect a%%+icab+e to %endin, cases- 2a7in, co,niDance in %endin, co$%+aint u/ s 1"8 after %eriod of +i$itation on ,round of sufficient cause - (o interference ca++ed for in e#ercise of inherent %o3ers or e#traordinar/ Curisdiction 2007Cri 8 9 2182 Case referred 2006 A)0 'CW 61"0 A)0 200" 'C 24"4

"6

Chapter - !.

0*risdiction

1 .ost of the act such as dra3in, of che-ue, %resentation of che-ue, return of che-ue b/ dra3n ban7 re+ated to %+ace B9B but on+/ che-ue 3as dra3n at 8uc7no3, co$%+aint fi+ed at %+ace B9B - not $aintainab+e 2008Cri 8 9 2177 Case referred 2007Cri 8 9 115 2005Cri 8 9 575 2 Co$%+aint fi+ed before C9. at %+ace B@B on 26 6 1991 C9. directed to fi+e co$%+aint before .a,istrate at %+ace B5B Co$%+aint fi+ed before .a,istrate at %+ace B5B on 2 4 1996 - initiation of %roceedin, on co$%+aint fi+ed 26 6 1991 2007 Cri 8 9 1042 Case referred 1985 Cri 8 9 "01 " !etition to -uash co$%+aint of dishonour of che-ue - che-ue issued %ursuant to contract for su%%+/ entered 3ithin Curisdiction of one <i,h Court- 'u%%+/ 3as to be $ade and %a/$ent 3as a+so to be $ade 3ithin Curisdiction of that <i,h Court Co$%+aint of dishonour fi+ed in Court under that <i,h Court- Aact that accused had sent che-ue fro$ on his re,istered office is 3ithin Curisdiction of other <i,h Court- do not for$ inte,ra+ %art of cause of action of offence of dishonour of che-ue - that does not confir$ Curisdiction on the other <i,h Court to entertain %etition 2006Cri 8 9 168" 'C Case referred 2006 A)0 'CW 86" &2005* 4 'CC 417 &2005* 9 'CC 161 A)0 2004 'C 2"21 A)0 2005 'C "92 4 Co$%+aint instituted H Ah$adna,ar Accused carried business H Chand%ur&6rissa* 2ransaction 3ere 3ith branch of co$%+ainant at 4hubnesh3ar Che-ue issued b/ accused at Chand%ur and 3as dishonoured 3ith territoria+ Curisdiction of Court at @hurda &6rissa* Co$%+ainant issued de$and notice to accused at %+aces situated in

"7

--6rissa state )n absence of an/ 3ritten a,ree$ent to %a/ a$ount at Ah$adna,ar Curisdiction cannot be assu$ed to be 3ith said Court $ere+/ because it is stated in de$and notice that %a/$ent sha++ be $ade there -Court at Ah$adna,ar has no Curisdiction to entertain co$%+aint 2009 Cri 8 9 "220 Case referred A)0 2009 'C 1168 A)0 2009 'C 1"55 2008 &"* A)0 4o$ba/ 0 1"2 2007 Cri 8 9 115 &4o$b* A)0 2001 'C 1161 2erritoria+ Curisdiction Co$%+aint not fi+ed in Court in 3hose territoria+ Curisdiction cause of action arose -Co$%+ainant not residin, and 3as not 3or7in, for ,ain 3ithin Curisdiction of Court Co$%+aint cou+d be returned to be %resented before %ro%er Court 2009 Cri 8 9 452 Case referred 2007 Cri 8 9 115 A)0 1999 'C "762

"8

Chapter - ,.

Cogni1ance

1 Accused not $a7in, %a/$ent 3ithin 15 da/s fro$ date of recei%t of notice, co$%+ainant entit+ed to fi+e co$%+aint 3ithin ne#t $onth fro$ date on 3hich cause of action arose u/s c of !rovisio of 1"8 ( ) Act 2010 Cri 8 9 121" Case referred 2005 Cri 8 9 755 A++ A)0 2001 'C 2960 A)0 1976 'C 1947 A)0 196" 'C 14"0 2 Co,niDance ta7en before e#%ir/ of statutor/ %eriod of 15 da/s accused did not $a7e %a/$ent at a++- Conviction cannot be set aside on ,round of %re$ature co,niDance 2007Cri 8 9 2502 Case referred 1999 Cri 8 9 288" " !resentation of co$%+aint before e#%ir/ of sti%u+ated %eriod - tria+ Court shou+d 3ait and a++o3 co$%+ainant to estab+ish his case or co,niDance shou+d be ta7en after e#%ir/ of sti%u+ated %eriod instead of dis$issin, the co$%+aint 2005 Cri 8 9 "681 Case referred A)0 2004 'C 4674 A)0 2000 'C 2946 4 Co,niDance had been ta7en $uch after e#%ir/ of 15 da/s of %rescribed ti$e - order dis$issa+ of co$%+aint on ,round that it 3as %re$ature- +iab+e to be set aside 2010Cri 8 9 706 Case referred A)0 2000 'C 2946 5 1ishonour of t3o che-ue Coint co$%+aint - 2here is no +e,a+ bar to Coin tria+ of case in res%ect of both dishonoured che-ue b/ $eans of a sin,+e co$%+aint 2009Cri 8 9 154

"9

6 Co$%+aint fi+ed before e#%ir/ of 15 da/s fro$ date of service of notice 3ou+d be %re$ature and co,niDance ta7en 3ou+d be +e,a+ 2008 Cri 8 9 172 7 )n vie3 of the +e,a+ %osition it is c+ear that if the co$%+aint is fi+ed but the .a,istrate does not %roceed u/s 200 Cr ! C , it cannot be said that .a,istrate has ta7en co,niDance, but if the co$%+aint is fi+ed and .a,istrate %roceed u/s 200 Cr ! C and direct to re,ister the case and even if fi#es the date for ta7in, evidence u/s 200 Cr ! C he ta7e co,niDance of the offence on the date of the fi+in, of the co$%+aint itse+f 2008 Cri 8 9 2172 Case referred A)0 2005 'C 4284 A)0 2000 'C 2946

40

Cogni1ance - S*&&oning of acc*sed on photocopies 1 'u$$onin, of accused on basis of %hotoco%ies is not i$%ro%er 2008 Cri 8 9 &(6C* 949

41

Cogni1ance on repeated presentation of che3*e 1 Ai+in, co$%+aint on basis of subse-uent dishonour and conse-uent notice 3ithout even referrin, ear+ier dishonour and conse-uent notice not %er$issib+e 2009Cri 8 9 "207 Case referred 2009A)0 'CW 1044 A)0 1998 'C "04" 2 !a/ee has ri,ht to sent che-ue to ban7 in nu$ber of ti$es he %+eases durin, %eriod of its va+idit/ 8i$itation %eriod start to run fro$ date of +ast dishonour 2009 Cri 8 9 154 Case referred: 1995 Cri 8 9 1"84 &@era+a* &A 4 * A)0 1998 'C "04" 2000 Cri 8 9 292 A++

42

Cogni1ance- Co&5ining Ca*se of $ction 1 1ishonour of che-ue $ore than one che-ue - Co$binin, cause of action for ho+din, sin,+e tria+- 1ishonour of the che-ue constitute se%arate offence ,ivin, ri,ht rise to se%arate cause of action subCect to condition that se%arate notices are issued in res%ect of each che-ue 2ransaction cannot be he+d to be a sin,+e transaction attractin, %rovision of section 219 of Cr ! C - 'e%arate tria+ %er$issib+e -'ection 1"8, 147 ( ) Act 'ection 427 Cr ! C - 1ishonour of che-ue 1ifferent tria+s for dishonour of different che-ue and i$%osition of different sentences - 1irection to run sentences of i$%rison$ent concurrent+/ - not ob+i,ator/ for Court to direct for subse-uent sentence sha++ run concurrent+/ 3ith %revisous sentence refusa+ to ,ive such direction - cannot +ead to causin, $iscarria,e of Custice 2010Cri 8 9 844 Case referred 2001Cri 8 9 950 1999 Cri 8 9 4606 1977 Cri 8 9 992

4"

Chapter - 1-.

Co&plaint */s. 141 N.I. $ct

Co&plaint against co&pany 1 6ffence b/ co$%an/ - co$%+aint - Aver$ent that accused 3as at ti$e of offence in char,e and res%onsib+e for conduct of business of co$%an/ - )s essentia+ - 1irector of Co$%an/-(ot dee$s to be vicarious+/ +iab+e $ere+/ b/ virtue of office he ho+d -.ana,in, 1irector, 9oint .ana,in, 1irector are in char,e of and res%onsib+e for conduct of business of co$%an/ b/ virtue of office the/ ho+d 2he/ ,et covered u/s 141 ( ) Act - 'i,nator/ of che-ue 3hich is dishonoured is c+ear+/ res%onsib+e for incri$inatin, act is covered u/s 141 ( ) Act 2005Cri 8 9 4140 'C Case referred A)0 2004 'C 4274 A)0 2005 'C "54 2 6ffence b/ co$%an/ - 5ach and ever/ %erson 3ho has been arra/ed as accused on ,rounds that he is concerned 3ith business and affairs of co$%an/ need not be convicted Co$%+aint for dishonour of che-ue fi+ed a,ainst res%ondent fir$, its .ana,in, %artner and re$ainin, %artner - findin, of tria+ Court that .ana,in, %artner of fir$ a+one 3as res%onsib+e for co$$ission of a++e,ed offence u/s 1"8 ( ) Act is based on evidence Aastenin, Cri$ina+ +iabi+it/ on hi$ a+one - is %er$issib+e in +a3 des%ite the fact re$ainin, %artners concerned 3ith affairs of fir$ 3ere a+so arra/ed as accused 2009 Cri 8 9 2497 Casereferred A)02000'C145 A)0 1984'C 1824 " 'ec 141 ( ) Act is co$%rehensive - che-ue issued b/ fir$ of undivided hindu fa$i+/ - Coint fa$i+/ business $ust dee$ed as Curistic %erson +i7e co$%an/ or fir$- hence cover u/s 141 ( ) Act 2er$ association of individua+ 3i++ inc+ude <indu undivided fa$i+/ business - A++ $e$bers of fa$i+/ can be ro%ed into as dra3ers of che-ue thou,h si,nator/ 3as one of the$ 6rder -uashin, %rocess a,ainst so$e of the$ - Wou+d be %re$ature - <indu 8a3 - 9oint fa$i+/ business - %attern of accounts is different

44

that of a %artnershi%- 2here is unit/ of honourshi% and co$$unit/ of interest 2009Cri 8 9 67 Case referred 2001 &;104* Co$% Case 290 &'C* 2001 &106* Co$%* Case 489 .adras 4 6ffence b/ Co$%an/- 0e-uire$ent of 'ec 141 is that %erson sou,ht to be $ade +iab+e shou+d be inchar,e of and res%onsiib+e for conduct of business of co$%an/ at re+evant ti$e - 2his has to be averred as a fact C+ear aver$ents in co$%+aint that accused, 1irectors of Co$%an/ are .ana,in, affairs of Co$%an/ and are res%onsib+e for act of co$%an/ 6rder issuin, a,ainst the$ cannot be -uashed - Co$%+ainant not sho3in, ho3 the/ are res%onsib+e for the conduct of the co$%an/ nor it has been averred that the offence has been co$$itted b/ the$ 3ith their consent or connivance or is attributab+e to an/ ne,+ect on their %art/ 6rder issuin, %rocess a,ainst the$ +iab+e to be -uashed 2009 Cri 8 9 104 Case referred A)0 2007 'C 1662 A)0 2005 'C "512 5 Co$%anies Act 'ec "4 , !artnershi% Act - !ro%rietar/ concern is neither in co$%an/ incor%orated under Co$%anies Act nor a fir$ 3ithin $eanin, of %rovisions of sec 4 of !artnershi% Act - 'ec 1"8, 141 ( ) Act -uashin, of co$%+aint - )n co$%+aint a%%e++ant accused described as business concerned and not as a co$%an/ or %artnershi% fir$ or association of %ersons - Co$%+ainant not statin, as to in 3hich ca%acit/ a%%e++ant had been servin, business concern - !ri$a facie cases of vicarious +iabi+it/ a,ainst a%%e++ant not $ade out- 6rder of <i,h Court dec+inin, to e#ercise Curisdiction u/ 482 to -uash co$%+aint a,ainst a%%e++ant +iab+e to be set aside 2007Cri 8 9 24"6 'C Case referred 2007 &"* 'ca+e 245 A)0 2006 'C "086 A)0 2005 'C "512

45

A)0 1999 'C 1484 6 6ffence b/ Co$%an/ - '%ecific aver$ent $ade in co$%an/ that accused %ersons 3ere inchar,e of and contro+ of da/ to da/ affairs and $ana,e$ent of accused co$%an/ - '%ecific $ention therein that one accused 3as Chair$an of co$%an/ and others 3ere res%onsib+e for conduct of business of co$%an/ - Co$%+aint thus $a7in, out case u/s 141 ( ) Act -6rder -uashin, %rocess u/s 1"8 ( ) Act and other accused $entioned therein , %ro%er- )t cannot be said that %rocess 3as issued on+/ u/s 1"8 and not under section 141 ( ) Act <ence co$%+aint cannot be %roceeded a,ainst Chair$an and accused %ersons 2009 Cri 8 9 995 Case referred 2008Cri 8 9 11"4 2007Cri 8 9 2207 A)0 2006 'C "086 7 6ffence b/ co$%an/ - >icarious +iabi+it/ - che-ue of hu,e a$ount issued b/ co$%an/ in favour of another co$%an/ - cate,orica+ a++e,ation in co$%+aint that %a/$ents 3ere $ade after $eetin,s he+d b/ and bet3een re%resentative of co$%an/ and accused %erson 3hich inc+uded res%ondents , Chair$an and . 1 of dra3er co$%an/ 0es%ondent cou+d not %+ead i,norance of entire transaction - a++e,ation in co$%+aint satisf/ the in,redients of %rovisions of 'ec 141 ( ) Act !rocess cou+d be issued a,ainst said res%ondent accused 2007Cri 8 9 2442 'C Case referred A)0 2007 'C 912 A)0 2007 'C "512 &2005* 1" 'CC 21" 8 6ffence b/ co$%an/ - i$%+ead$ent as accused %ersons )t shou+d be sho3n that accused 3as connected 3ith $ana,e$ent of fir$ or ho+d an/ office in said fir$- $ere+/ because he 3as son of +ate %artner of fir$ cannot be ,round to i$%+ead hi$ as accused 2007Cri 8 9 25"8 9 6ffence b/ co$%an/ - accused %ersons a++e,ed that there 3as no $ateria+ to sho3 that at ti$e of offence the/ 3ere inchar,e of or res%onsib+e to co$%an/ for conduct of business co$%+aint 3ou+d not be -uashed on said ,round

46

- 'ec 205 Cr ! C - if at an/ sta,e tria+ court co$es to conc+usion that accused %ersons are tr/in, to de+a/ co$%+etion of tria+, it can refuse %ra/er for dis%ensin, 3ith %ersona+ attendance 2005Cri 8 9 2566 'C 10 6ffence b/ co$%an/ - %+ea b/ director that he 3as %reCudiced b/ $entionin, of his na$e as 3as not in char,e of affairs of co$%an/ !rosecution never intended to %rosecute hi$ in his individua+ ca%acit/ (one %rosecution of 1irectors or 1irector res%onsib+e for $ana,e$ent of affairs of co$%an/ or inchar,e of its affairs - )s no bar to %rosecute co$%an/- Co$%an/ is invariab+/ +iab+e %rosecution thou,h there is no s%ecific a++e,ation a,ainst 1irector 2005Cri 8 9 "805 Case referred A)0 2004 'C 4087 A)0 2004 'C 4274 A)0 2004 'C4711 11 Co$%+aint fi+ed a,ainst accused co$%an/ and its director - Windin, u% %roceedin, a,ainst co$%an/- Cri$ina+ +iabi+it/ is enforced on co$%an/ and 1irector of co$%an/ for their act (o -uestion of c+ai$in, an/ ri,ht our assets of co$%an/, after 3indin, u% %roceedin, 3ere over - co$%an/ and its 1irector cannot shir7 their cri$ina+ +iabi+it/ on ,round that co$%an/ 3as a+read/ 3ound u% and officia+ +i-uidator had ta7en char,e of affairs of co$%an/- Co$%anies Act 'ec 446 2005Cri 8 9 2289 Case referred 2000C 8 C 7"6 &@er+a+ * 1998 Cri 8 9 4095 @era+a A)0 1970 'C 1041 12 Fuashin, of %roceedin,s - 6ffence b/ co$%an/- Fuashin, suit on ,round that accused co$%an/ is sic7 - %urchase orders 3ere issued after co$%an/ 3as dec+ared sic7 'uch facts not disc+osed to co$%+ainant'u%%+ier- Che-ue for %a/$ent of %rice of $ateria+ su%%+ied - )ssued b/ 1irector of accused co$%an/ 3ith fu++ 7no3+ed,e of fact- Conduct of accused indicates that ri,ht fro$ ince%tion, accused had no intention of %a/in, a$ount for %urchase $ade- <i,h Court refusin, to -uash %roceedin, - (o interference b/ 'u%re$e Court 2008Cri 8 9 "960 Case referred

47

A)0 2000 'C 926 A)0 2000 'C 954 1" 6rder su$$onin, Chair$an and 1irector of co$%an/ - Aver$ents in co$%+aint sho3in, that accused 3as Chair$an of co$%an/ Fuestion of his res%onsibi+it/ for business of co$%an/ not serious+/ cha++en,ed- C+ear a++e,ation a,ainst accused to effect that the/ 3ere officers and res%onsib+e for affairs of co$%an/- 2ria+ /et to be started <e+d that it 3ou+d be ina%%ro%riate to -uash %roceedin,s a,ainst accused 2008Cri 8 9 "049 'C Case referred A)0 2007 'C 1454 A)0 2007 'C 1650 A)0 2007 'C 1682 A)0 2005 'C "512 14 >icarious +iabi+it/ of 1irector of Co$%an/ - )t is ob+i,ator/ on %art of co$%+ainant to $a7e s%ecific a++e,ation as are re-uired b/ +a3 to $a7e 1irector vicarious+/ +iab+e -'trict construction is necessar/ .ere+/ been described as 1irector is not sufficient 2007Cri 8 9 1419 'C Case referred A)0 2006 'C "086 A)0 2005 'C "512 15 Che-ue issued on beha+f of res%ondent - Co$%an/ 3as returned on account of sto% %a/$ent instruction- Accused %ersons, 3ho 3ere Chair$an, . 1 and 9oint 1irector b/ virtue of their offices can be said to be inchar,e of and res%onsib+e for conduct of business of co$%an/ 'i,nator/ of che-ues 3hich 3as dishonoured 3as a+so c+ear+/ res%onsib+e for incri$ination Act - 2here so ca++ed none invo+ve$ent 3i++ have to be %roved b/ +eadin, evidence durin, tria+ -!+ea that co$%+ainant had not $ade s%ecific aver$ents sufficient to invo7e %rovisions of sec / 141 ( ) Act - )s not tenab+e - Aurther %+ea that co$%+aint a,ainst accused cannot be sustained as in so$e of co$%+aints .a,istrate had not issued %rocess - )s +iab+e to be reCected6rder dischar,in, accused %ersons is i$%ro%er 2007Cri 8 9 27" Case referred

48

A)0 2005 'C "8 A)0 2005 'C 24"6 A)0 2004 'C 4711 A)0 2004 'C 4674 A)0 2002 'C 182 A)0 2002 'C 985 A)0 2001 'C 289516 6ffence b/ co$%an/ -uashin, of %roceedin, - Accused one of 1irectors - !+ea that he had inti$ated co$%an/ of his desire to retire before che-ue in -uestion 3as issuedCannot be ,round to be -uash %roceedin,s a,ainst hi$ 16 Aact that a++e,ations a,ainst 1irector are ,enuine- (ot ,round to -uash %roceedin,s 2008 Cri 8 9 4"16 'C Case referred 2007 &9* 9 2 449 19 'ec 1"8 ( ) Act and sec 69 &2* !artnershi% Act- 1ishonour of che-ue - !rivate co$%+aint for offence u/s 1"8 not barred -ua sec 69 &2* of !artnershi% Act- A$ount re-uired to be %aid as %rice of artic+es of ,oods- )s a +e,iti$ate debt or +iabi+it/ and therefore it is +e,a++/ enforceabi+it/ debt or +iabi+it/ 1isabi+it/ of unre,istered fir$ under 69&2* of !artniershi% Act to fi+e a suit to enforce a ri,ht arisin, out a contract - does not $a7e such debt or +iabi+it/, a not +e,a++/ enforceab+e debt or +iabi+it/ 2008 Cri 8 9 498 Case referred A)0 2000 'C 2676 2000Cri 8 9 2"86 &A !* 20 'ec 1"8, 142 ( ) Act che-ue dishonour %roceedin,s - can be initiated a,ainst a %erson 3ho has si,ned a che-ue Che-ue of a Coint account si,ned b/ t3o %ersons Co$%+ainant can choose and either %roceed a,ainst both si,natories or %roceed a,ainst %roceed a,ainst one of si,natories Co$%+ainant cannot be co$%e++ed to %roceed a,ainst both si,natories >er/ fact that %etitioner accused havin, si,ned che-ueWou+d estab+ish that %etitioner accused 3as a+so an active %artner res%onsib+e for the da/ to da/ affairs of the accused co$%an/ Contention of the %etitioner accused that he 3as a s+ee%in, %artner of the fir$ - (ot tenab+e 2009Cri 8 9 224

49

Co&plaint thro*gh co&pany 1 'ec 7, 1"8 ( ) Act - 1ra3er - Can be a natura+ %erson or a bod/ of %ersons , 3hether incor%orated or not - Che-ue issued b/ co$%an/ si,ned b/ its 1irector - 1ishonoured for insufficienc/ of funds - on+/ co$%an/ - 4ein, dra3er of che-ue is entit+ed to notice u/s !roviso &b* to 'ec 1"8 ( ) Act its 1irector facin, indict$ent because of sec 141 or not entit+ed to se%erate notices 2005 Cri 8 9 19"1 Case referred A)0 2001 'C 518 2 Che-ue dishonour co$%+aint - can be $ade b/ %a/ee or ho+der in due course of che-ue Co$%+aint +od,ed in na$e and on beha+f of a%%e++ant co$%an/ 3ho is %a/ee of che-ues - iis $aintainab+e- fact that co$%+aint 3as +od,ed b/ .ana,er or 1e%ut/ .ana,er 3ho had not been authorised b/ 4oard of 1irectors to si,n and fi+e co$%+aint on beha+f of co$%an/- cannot be a ,round for -uashin, co$%+aint, since defect is curab+e 2002Cri 8 9 266 Case referred &1999* 1 'CC 11" 1998 Cri 8 9 856 1998 Cri 8 1"97 " 'ec 1"8, 141 ( ) Act, 'ec 256 &1*, 255 &1* Cr ! C 1ishonour of che-ue - Co$%+aint fi+ed b/ %artnershi% fir$ - 'ubse-uent+/, co$%+ainant found stood ad$itted+/ disso+ved and 3as ta7en or b/ a co$%an/ (o a%%+ication to continue %rosecution 3as fi+ed b/ co$%an/ Absence of a co$%etent %erson to continue the %rosecution , 3i++ stand in 3a/ of co$%+ainant fir$ continuin, %rosecution after obtainin, +eave fro$ court Ac-uitta+ on ,round that co$%+ainant is absent u/s 256 &1* and not under section 255 &1* Cr ! C 2009Cri 8 9 "05 Case referred A)0 2005 'C 48 4 1ishonour of che-ue - Co$%+ainant 3ho can be - Che-ue has not been endorsed b/ %a/ee in favour of an/one - it is %a/ee a+one 3hether cor%orea+ or incor%orea+ %erson, 3ho can be the co$%+ainant, if

50

co$%an/ if co$%+ainant, it can be re%resented b/ an/ e$%+o/ee even b/ a non e$%+o/ee authorised %erson ?overn$ent co$%an/ is not a %ub+ic servant but ever/ e$%+o/ee of such co$%an/ is a %ub+ic servant 'ec 200 !roviso a Co$%+aint b/ a ,overn$ent co$%an/ e#a$ination of co$%+ainant and 3itnesses - re-uire$ent as to - co$%+iance 3ith - (ot necessar/ since e$%+o/ee re%resentin, in such co$%an/ is a %ub+ic servant 2009Cri 8 9 1299 Case referred A)0 1998 'C 596 A)0 1972 'C 26"9 A)0 1970 'C 7 5 Co$%+ainant - .ana,er in 4an7, a++e,ed+/ advanced +oan to accused -1ates $ention on che-ue and rest of contents 3ere not in sa$e in7 - )t 3as i$%robab+e that co$%+ainant 3ou+d advance $one/ to a %erson 3ho had a+read/ defau+ted in re%a/$ent of +oan - 5vidence on record sho3ed that co$%+ainant did not have an/ $one/ 3ith hi$- )n fact he o3ed $one/ to others defence of accused is %robabi+ised b/ co$%+ainantBs on evidence Che-ues 3ere not issued for dischar,e of an/ debt - Accused is entit+ed to be ac-uitted 2009Cri 8 9 882 Case referred A)0 2008 'C 1"25 &2008* 1 'CC 258

51

Chapter -11.

Co&plaint thro*gh a*thorisation

1 Co$%+aint b/ $ana,er of %artnershi% fir$- Co$%+aint fi+ed b/ a %erson 3ho 3as neither %artner nor authorised b/ %artner to fi+e co$%+aint Authorisation is necessar/- 5ven a %erson 3ho is +oo7in, after entire business affairs of fir$ cannot fi+e such co$%+aint 3ithout authorisation )n absence of authorisation co$%+aint is +iab+e to be dis$issed 2009 Cri 8 9 2154 Case 0eferred: A)0 2009 'C 422 2002 Cri 8 9 2142 1998 Cri 8 9 47"5 @era+a A)0 1984 'C 5 2 !a/ee throu,h his %o3er of attorne/ ho+der is $aintainab+e 2008 Cri 8 9 1001 Case referred A)0 2005 'C 48 " Co$%+aint not on beha+f of fir$ or a,ainst hi$ (ot suit to enforce ri,ht arisin, fro$ a contract on beha+f of an/ %erson suin, as a %artner of the fir$, suin, another %artner of the fir$ 'ec 69 &2* of !artnershi% Act 3i++ not a%%+/ (o fact of non re,istration of %artnershi% fir$ Co$%+aint not +iab+e to be dis$issed for 3ant re,istration of fir$ 2008 Cri 8 9 1001 Case referred A)0 2001 @ant <C0 121" 4 'on as a %o3er of attorne/ ho+der can continue %rosecution on beha+f of his father 2007 Cri 8 9 2978 Case referred 2005 &1* Andh 8 1 &Cri * 498 &A4* 5 Co$%+aint re+ied on +etter authorisin, $ana,er fir$ to initiate +e,a+ %roceedin,s 3ith re,ards to che-ue in dis%ute - Authorit/ of $ana,er 3as not %roved - (either co$%+ainant 3as %a/ee in res%ect of said che-ue not co$%+iant 3as fi+ed in na$e of fir$ dis$issa+ of co$%+aint is %ro%er Co$%+aint even throu,h a $ana,er or an authorised re%resentative, such co$%+aint has to be on beha+f of the %a/ee or the ho+der in due course and cannot be fi+ed in %ersona+ ca%acit/ either b/

52

$ana,er or authoriDed re%resentative 3ithout fi+in, the said co$%+aint for and on beha+f of the %a/ee of the ho+der in due course 2009 Cri 8 9 40"1 Case referred 2002 Cri 8 9 266 1984 Cri 8 9 1 A)0 1971 'C 1865 6 2he co$%+aint can be fi+ed throu,h the ho+der of %o3er of attorne/ and such %o3er of attorne/ can a+so be e#a$ined in %+ace of the co$%+ainant if he has %ersona+ 7no3+ed,e of the transaction in -uestion or the bi++s had been si,ned b/ hi$ Co$%+ainant in this case 3as not fi+ed in the na$e of %a/ee 2he ho+der of %o3er of attorne/ has %roCected hi$se+f as the co$%+aint 2009 Cri 8 9 2186 Case referred A)0 2009 'C 422 2008 Cri 8 9 1509 A)0 1972 'C 26"9 7 Co$%+aint b/ $u+ti - state coo%erative societ/ - is to be fi+ed b/ %ersons authoriDed b/ a reso+ution in their, %assed b/ 4oard of 1irectors !o3er to +od,e co$%+aint cou+d be ,iven to %erson on+/ b/ a reso+ution of 4oard of 1irectors 2010 Cri 8 9 7"4 Case referred A)0 2009 422 2008 Cri 8 9 998 2007 Cri 8 9 858 2002 Cri 8 9 266 &'C * 8 Co$%+aint fi+ed b/ e$%+o/ee of the co$%+ainant fir$- 4ut no authoriDation 3as e#ecuted in his favour b/ fir$- co$%+aint not $aintainab+e 2008Cri 8 9 &(6C* 951 < ! 9 =nre,istered fir$ can institute a co$%+aint about dishonour of che-ue 2008Cri 8 9 &(6C* 948 ?A= 10 Co$%+aint +od,ed in na$e and on beha+f of a%%e++ant co$%an/ 3ho

5"

is %a/ee of che-ue - )s $aintainab+e- Aact that co$%+aint 3as +od,ed b/ $ana,er of de%ut/ $ana,er 3ho has not been authorised b/ 4oard of 1irectors to si,n and fi+e co$%+aint on beha+f of co$%an/ - cannot be ,round for -uashin, co$%+aint, since defect is curab+e 2002 Cri 8 9 266 'C Case referred &1999* 1 'CC 11" 1998 Cri 8 9 856 1998 Cri 8 9 1"97 11 0eso+ution of co$%+ainant co$%an/ authorisin, %erson to fi+e co$%+aint 3as not ha%%i+/ 3orded - Co$%+aint cannot be dis$issed on this ,round 2006Cri 8 9 2065 Case referred A)0 2005 'C "512 A)0 2004 'C 4274

54

Chapter - 1#. Che3*e to4ard Sec*rity any de5t or other lia5ility -Sec. 1 , N.I. $ct 1 )f a che-ue is issued for securit/ or for an/ other %ur%ose the sa$e 3ou+d not co$e 3ithin the %urvie3 of the sec 1"8 of the Act 2009 C0i 8 9 4460 Case referred 2006 'C ""66 2 'ecurit/ inter a+ia $eans thin,s de%osited for h/%othecated as %+ed,e for fu+fi++$ent of underta7in, or %a/$ent of +on, to be forfeited in case of fai+ure, securit/ is ,iven, not as a %iece of %a%er to be retained b/ the creditor but to be enforced 3hen the debtor fai+s to %a/ the a$ount )n other 3ords, no doubt the che-ue 3as issued as securit/ but de$and to c+ear the debt 3as $ade and u%on fai+ure securit/ 3as enforced A)0 2009Cri 8 9 4250 Case referred A)0 2002 'C "014 " )t $a/ be %ointed out that sec 1"8 of the Act had three in,redientsthat there 3as a +e,a++/ enforceab+e debt - 2hat the che-ue 3as dra3n fro$ the account of ban7er for dischar,e, in 3ho+e or in %art, of an/ debt or other +iabi+it/, 3hich %resu%%oses a +e,a+ enforceab+e debt, and -that the che-ue so issued had been returned due insufficienc/ of funds 2here is no -uarre+ or the %re%osition that section 1"9 of the Act raises a %resu$%tion in re,ard to ))nd in,redient on+/ 5#istence of +e,a++/ recoverab+e debt is not a $atter of %resu$%tion )t $ere+/ raises %resu$%tion in favour of the ho+der of the che-ue that the sa$e has been issued for dischar,e of an/ debt or other +iabi+it/ a+so, once e#ecution of the %ro$issor/ note is ad$itted or %roved the %resu$%tion u/s 118 &a* of the Act 3ou+d arise that it is su%%ort b/ consideration 2009 Cri 8 9 2885 Case referred A)0 2008 'C 1"25 4 Che-ue issued b/ 3a/ of securit/ - %+ea that dishonour of such che-ue does not attract cri$ina+ +iabi+it/ - Accused a+so a++e,in, inter%o+ation in a$ount 3ritten in nu$ber- Aact of inter%o+ation corroborated b/ e#%ert evidence - Conviction recorded 3ithout considerin, +e,a+ %+ea and 3ithout ,ivin, satisfactori+/ reason for disbe+ievin, fact of inter%o+ation +iab+e to be set aside

55

2008Cri 8 9 "004 5 !resu$%tion as to +e,a++/ forcib+e - rebutta+ of - a$ount advance b/ co$%+ainant to accused 3as +ar,e a$ount not re%a/ab+e 3ithin fe3 $onths- fai+ure b/ co$%+ainant to disc+ose the a$ount in his inco$e ta# return or boo7 of accounts-'ufficient to rebut %resu$%tion u/s 1"9 of the Act - !resu$%tion as to issuance of che-ue in dischar,e of +e,a++/ enforceab+e debt a$ount advanced b/ co$%+ainant to accused 3as unaccounted cash a$ount )t 3as not disc+osed in inco$e ta# return +iabi+it/ to re%a/ uncounted cash a$ount cannot be said to be +e,a++/ enforceab+e +iabi+it/ 3ithin $eanin, of e#%+anation of sec 1"8 ( ) ActAc-uitta+ of accused %ro%er 2009 Cri 8 9 "777 Case referred A)0 2008 'C 1"25 A)0 2007 'C 451 A)0 2005 'C 2277 6 8e,a++/ enforceab+e +iabi+it/ or other +iabi+it/ - A,ree$ent of sa+e of t3o sho%s bet3een accused and co$%+ainant - Accused %aid %art of consideration a$ount and issued %osted che-ue to3ards consideration a$ount 3hich 3as dishonoured Co$%+ainant 3as in %ossession and enCo/$ent of sho%s and did not de+iver to accused an/ of sho%s even after of receivin, %art of consideration a$ount Co$%+ainant 3ou+d be entit+ed to receive ba+ance consideration a$ount on+/ on e#ecution and re,istration of sa+e deed in favour of accused- !a/$ent of ba+ance consideration a$ount 3as other +iabi+it/ and not +e,a++/ enforceab+e +iabi+it/ - Che-ue 3as issued b/ accused to co$%+ainant under an a,ree$ent bet3een the$ - )f there 3as na/ vio+ation of an/ ter$ of a,ree$ent b/ accused, re$ed/ o%ened to co$%+ainant to ta7e a%%ro%riate ste% before Civi+ Court and Cri$ina+ Court - Ac-uitta+ %ro%er 2010Cri 8 9 1061 Case referred A)0 2008 'C 1"25 A)0 2009 'C 568 7 1ischar,e of debt rebutta+ of %resu$%tion u/s/ 1"9 of the Act - Court can ta7e notice of conduct of %arties- res%ondent a++e,ed to have borro3ed hu,e su$ fro$ a%%e++ant - Co$%+ainant des%ite suits for recover/ of defau+ted a$ount fi+ed a,ainst hi$ b/ a%%e++ant - no

56

docu$ent e#ecuted - a$ount advanced carr/ no interest - findin, of fact b/ <i,h Court that res%ondent did not issue che-ue in dischar,e of an/ debt and dischar,e burden of %roof case on hi$ u/s 1"9 of the Act 4ein, not %erverse - cannot be interfered under Artic+e 1"6 2008 Cri 8 9 4"4 'C Case referred 2007Cri 8 9 "209 A)0 2006 'C ""66 8 'ec 1"9 ( ) Act $ere+/ raises %resu$%tion in favour of ho+der of che-ue that sa$e has been issued for dischar,e of an/ debt or other +iabi+it/ 5#istence +e,a++/ recoverab+e debt - )s not a $atter of %resu$%tion - 1efence - %roof - accused not re-uired to ste% into 3itness bo# - <e $a/ dischar,e his burden on basis of $ateria+ a+read/ brou,ht on record Fuestion 3hether statutor/ %resu$%tion rebutted or not - $ust be deter$ined in vie3 of other evidence on record 2008Cri 8 9 1172'C Case referred A)0 2006 'C ""66 A)0 2007 'C 451 A)0 2005 'C 2277 9 'ec 1"8, 1"9, 118- 1ishonour of che-ue - !resu$%tion as to-0ebutta+ of - Accused carr/in, on transaction in shares throu,h res%ondent in 'toc7 5#chan,e a++e,ed+/ issued che-ue for dischar,e of debt 3hich 3as dishonoured - 'aid +iabi+it/ b/ 3a/ of debt arose in ter$s of transaction - 1iscre%ancies found in boo7 of his account $aintained b/7 the res%ondent for %rovin, said transaction- defence of accused that che-ue 3as issued for %ur%ose of discountin, a%%ears to be %robab+e Accused dischar,in, his initia+ burden - Aai+ure in dischar,e of burden shifted to hi$ -conviction of accused set aside 2006 Cri 8 9 4607 'C Case referred A)0 2005 'C "708 A)0 200" 'C 20"5 A)0 1999 'C 1008 10 !+ea b/ accused that che-ue 3as in %ossession of co$%+ainant for co++atera+ securit/ - cannot be ,round for -uashin, co$%+aint )t is

57

$atter to be +oo7ed into sta,e of tria+ 3hether che-ue 3as ,iven in b+an7 or in securit/ 2006 C0i 8 9 ""12 Case referred 2005 Cri 8 9 "029 &Ao++ * &2004* 1 Cri$es 567 &A ! * 1995 Cri 8 9 560 &A ! *

58

Chapter - 1 .

6iscellaneo*s Nonappearance of co&plainant

1 1is$issa+ of co$%+aint on ,round of non a%%earance of co$%+ainant - 23o constraints are i$%osed in the Court for e#ercisin, %o3er u/s 256 Cr ! C a )f the court thin7 that in a situation it is %ro%er to adCourn the hearin, then the .a,istrate sha++ not ac-uit the accused b When the .a,istrate considers that %ersona+ attendance of co$%+ainant is not necessar/ on that da/, the .a,istrate has the %o3er to dis%ense 3ith his attendance and %roceed 3ith the case When the court notices that the co$%+ainant is absent on a %articu+ar da/ the Court $ust consider 3hether %ersona+ attendance of the co$%+ainant is essentia+ on that da/ for the %ro,ress of the case and a+so 3hether the situation doesnBt Custif/ the case bein, adCourn to another date due to an/ other reason )f the situation does not Custif/ the bein, adCourn the Court is free to dis$iss the co$%+aint and ac-uit the accused, but if the %resent of the co$%+ainant on that da/ 3as -uite a necessar/ then resortin, to the ste% of a#in, do3n the co$%+aint $a/ not be a %ro%er e#ercise of the %o3er envisa,ed in the section 2006 Cri 8 9 "170 2009 Cri 8 9 "911 ! E < <i,h Court Case referred 2002 Cri 8 9 "815 1998 Cri 8 9 856 2 Co$%+ainant c+osed his evidence Court %osted date for ar,u$ent Accused did not 3ant to e#a$ine an/ 3itness Co$%+ainant not %resent on date of ar,u$ent- Court dis$issed case for non a%%earance of co$%+ainant- (ot %ro%er as court shou+d have %assed order on basis of evidence avai+ab+e on record 2hou,h it is a su$$on case 2004 Cri 8 9 2766 Case referred 2004 Cri 8 9 14" 4o$ba/ " )n a case of sec 1"8 of ( ) Act it is a+3a/s the co$%+ainant 3ho is at sta7e for his $one/ 3hich ou,ht to have been %aid throu,h the che-ue 8earned Court ou,ht to have ado%ted the course either to adCourn the case for hearin, or to so$e other da/ under %rovision of section 256 Cr ! C as to ,rant e#e$%tion to the co$%+ainant on %articu+ar date of his

59

non a%%earance 2009 Cri 8 9 "925 Case referred A)0 2008 'C 1296 2004 Cri 8 9 406 &.!* &2002* 7 'CC 726 .ohd ADee$ Case 4 1is$issed in defau+t for sin,+e instance of nona%%earance of co$%+ainant i$%ro%er )t shou+d be endeavour of the Court to render substantia+ Custice to t he %arties and not to resort to technica+ities to defeat the substantia+ ri,ht of the %erson 3ho has 7noc7ed its door in e#%ectation that his ,rievance 3ou+d be rendered 2he basic obCect and %ur%ose of 3hich is to harness the vio+ators of the transaction arisin, fro$ $ercanti+e 2007 Cri 8 9 "460 Case referred 2006 Cri 8 9 "172 ! E < <i,h Court &2002* 7 'CC 726 .ohd ADee$ Case

60

Nonappearance of co&plainant 7is&issed in defa*lt - .estoration 1 Co$%+aint dis$iss in defau+t - 0estoration of - three co$%+aints 3ere fi+ed b/ co$%+ainant a,ainst three different %ersons- (otin,s $aintained in diar/ of Court sho3ed %resence of co$%+ainant in t3o co$%+aints on+/ - 1ue to oversi,ht %resence of co$%+ainant cou+d not be noted in third co$%+aint 3hich ca$e to be dis$issed in defau+t - Co$%+ainant ,ave sufficient reasons and sou,ht restoration of sa$e - 0estoration a%%+ication ho3ever, dis$issed for no va+id reasons- Writ %etitions a,ainst, fi+ed 3ithin %eriod of +i$itation fro$ date of 7no3+ed,e of co$%+ainant - A++o3ed and treated as revision 2007 Cri 8 9 2596

61

<ar on second trial F 1 - Whether a %erson cou+d be tried over a,ain for the offence of cheatin, &sec 420 )!C* on the basis of a second dishonoured che-ue 3hen he has a+read/ been tried and convicted of the sa$e offence on the basis of another che-ue in the sa$e transaction I - )n vie3 of the sec "00 &1* Cr ! C res%ondent 3ho 3as a+read/ tried for the offence u s 420 ) ! C $a7in, use of one of the three che-ues cou+d not have a,ain been tried for the sa$e offence based on the other che-ues issued for dischar,e of other %ortion of the sa+e consideration'ec 218, 219 Cr ! C have no a%%+ication Whether he cou+d be tried subse-uent+/ for the offence of u/s 1"8 ( ) Act I Ans Considerin, the in,redients to constitutes offence u/s 420 )!C and 'ec 1"8 ( ) Act 2hese se%arate and distinct offences constituted b/ se%arate facts 2here is no constitutiona+ bar in %rosecutin, the offender for the offence %unishab+e under 420 )!C in s%ite of his %rosecution and conviction u//s 1"8 of the Act 2009 Cri 8 9 19"8 Case referred A)0 1988 'C 1106 2008 Cri 8 9 "178 'C 1991 &2* @era+a 8 2 "41

62

7ischarge application 1 'ec 2"9, 245 Cr ! C , 'ec 1"8 ( ) Act -2hrou,h a%%+ication for dischar,e 3as $ade u/s 2"9 and 245 Cr ! C 3ron,+/, tria+ .a,istrate $a/ treat sa$e as under section 258 Cr ! C and see 3hether there is $ateria+ to %roceed further - sufficient $ateria+ on record to %roceed 3ith tria+ - 6rder of .a,istrate reCectin, a%%+ication for discha,e - )s %ro%er 2005Cri 8 9 "805 Case referred A)0 2004 'C 4087 A)0 2004 'C 4274 A)0 2004 'C 4711 2 'ec 1"8 ( ) Act %etition for dischar,e - 2riab+e +i7e su$$ons case!etition for dischar,e not $aintainab+e 2005 Cri 8 9 4492 Case referred &2005* 4 'CC 417 2004Cri 8 9 4609 2004Cri 8 9 4874

6"

'ndorse&ent ref*sed 1 Co$%+ainantBs case that he has sent notice under re,istered %ost to accused res%ondent, 3hich 3as returned to an Bendorse$ent refusedB 2here is an endorse$ent refused but there is no si,nature of an/ 3itness before 3ho$ the accused %erson refused to ta7e notice or an/ si,nature $ade b/ accused hi$se+f on said +etter - Co$%+ainant has not e#a$ined %osta+ %eon 3ho 3ent to de+iver said +etter- Co$%+ainant has further stated in his evidence that house for 3hich che-ue 3as ,iven to hi$, did not be+on, to hi$ - Co$%+ainant has fai+ed to %rove his case and a+so fai+ed to co$%+/ %rovisions of sec 1"8 &c* - 6rder of ac-uitta+ is therefore %ro%er 2009Cri 8 9 "768 2 'ervice of notice - )s sine -ua non for +aunchin, %rosecution - che-ue 3as issued on beha+f of co$%an/ - (otice Coint+/ address sent to . 1 of co$%an/, to the co$%an/ and to the fir$ in one enve+o% - 3as returned b/ %ost$an as refused - 3ou+d be dee$ed to be du+/ served refusa+ to acce%t is a+3a/s considered as ,ood service- !resu$%tion of service of notice cannot be rebutted b/ accused .ana,in, 1irector b/ $ere denia+ in state$ent u/s "1" Cr ! C 2008Cri 8 9 "770

64

Stop Pay&ent/$cco*nt closed 1 1irection of sto% %a/$ent of che-ue ,iven to ban7 - 3ou+d not ta7e offence out of s3ee% of 'ec 1"8 ( ) Act 2010Cri 8 9 748 Case referred A)0 200" 'C 20"5 A)0 1996 'C 2""9 2 'ec 1"8, 1"9 ( ) Act - (ot +iab+e to be -uashed on ,round of dishonour of che-ue b/ reason of sto% %a/$ent instruction !resu$%tion u/s 1"9 that che-ue 3as received b/ ho+der for dischar,e of that +iabi+it/ arises - !resu$%tion thou,h is rebuttab+e 2002Cri 8 9 266 'CC Case referred &1999* 1 'CC 11" 1998 Cri 8 9 856 1998 Cri 8 9 1"97 " Account c+osed $eans che-ue is returned for insufficienc/ of funds Account 3hich a+read/ stands c+osed cannot attract the $ischief of the sec 1"8 ( ) Act, this %+ea is not $aintainab+e 2010Cri 8 9 2502

65

Signat*re of co&plainant sho*ld ha(e 5een signed for expert opinion- plea of acc*sed 1 !+ea b/ accused that signat*re of co&plainant in h5is letter sho*ld ha(e 5een sent for e#%ert o%inion - onus of %roof 3as on hi$ to ta7e ste%s - (othin, on record to indicate that he too7 ste%s to ta7e assistance of an e#%ert to %rove that %ur%orted si,nature of co$%+ainant in +etter 3as that of co$%+ainant- )n case it 3as c+ear that che-ue 3as issued for su$ s%ecific or +iabi+it/ - it is not o%en for accused to tr/ ca%ita+iDed his o3n +aches and fau+t - Conviction of accused is %ro%er 2002 Cri 8 9 4025 Case referred A)0 2005 'C 4161 A)0 2002 'C 2907

66

C*tting on che3*e 1 Accused had ta7en +oan fro$ co$%+ainant - )n dischar,e of his +iabi+it/ , accused issued che-ue in res%ect of %articu+ar account nu$ber $aintained b/ hi$- 'aid account nu$ber on che-ue 3as scored off b/ co$%+ainant and another account nu$ber of accused 3as incor%orated therein -2his cuttin, 3as not authenticated b/ accused - since accused never intended to issue che-ue in re+ation another account nu$ber to dischar,e his +iabi+it/, dishonour of sa$e 3ou+d not fasten an/ cri$ina+ +iabi+it/ on hi$ 2009Cri 8 9 2"24 Case referred A)0 2000 'C 954 A)0 1999 'C "762

67

'ndorse&ent co&plainant

on

che3*e

4itho*t

;no4ledge

of

1 !etitioner accused issued che-ue in favouor of co$%+ainant for dischar,e of %art of debt - factu$ of dishonour of che-ue and suin, of +e,a+ notice b/ co$%+ainant not dis%uted- endorse$ent Bsans recourseB on che-ue $ade b/ accused 3ithout 7no3+ed,e of co$%+ainant and in absence of $entionin, said fact in its re%+/ notice b/ accused %rosecution cannot be -uashed - )t can be said that b/ $a7in, so$e endorse$ent b/ the accused hi$se+f on the che-ue does not e#onerate hi$ fro$ t he %ena+ %rovision under the statue 2007Cri 8 9 2901

68

7isp*ted Signat*re 1 1is%uted si,nature - che-ue 3as a++e,ed+/ reva+idated b/ accused res%ondent - 'ince the reva+idation 3as denied b/ res%ondent, the burden 3as certain+/ on the a%%+icant 3ho 3as c+ai$in, fresh %eriod of +i$itation - (o a%%+ication to e#a$ine che-ue b/ hand 3ritin, e#%ert 3as $ade b/ co$%+ainant - Co$%arison of dis%uted si,nature 3ith standard si,nature of accused b/ .a,istrate- Au++/ Custified (o need of interference as to order of ac-uitta+ - A%%+ication for +eave to fi+e a%%ea+ a,ainst ac-uitta+ +iab+e to be reCected 2009Cri 8 9 4176 Case referred A)0 2002 'C "8 1980 Cri 8 9 "96

69

.eport of loss of che3*e 1 Che-ue returned b/ ban7 on ,round that re%ort of +oss of che-ue 3as fi+ed b/ dra3er 'ec 1"8 is not attracted 2009Cri 8 9 "454 Case referred 2009 A)0 'CW 18"6 A)0 2008 'C 2255 A)0 2006 'C 407 - 2he %ara$eters for invo7in, the %rovisions of sec 1"8 of the Act bein, +i$ited, 3e are of the o%inion that refusa+ on the %art of the ban7 to honour the che-ue 3ou+d not brin, the $atter 3ithin the $ischief of the %rovision of the sec 1"8 of ( ) Act 2 4an7 return che-ue issued b/ accused in favour of co$%+ainant to3ards %rice of bric7s su%%+ied - reason ,iven b/ ban7 that che-ue 3ere re%orted to be +ost b/ dra3er Che-ue +ost a+so a$ounts to returnin, che-ue un%aid , a$ount of $one/ standin, standin, to credit of that account is insufficient to honour che-ue - sa$e is fu++/ covered u/s 1"8 ( ) Act 2010Cri 8 9 1209 " Co$%+ainant had +ent 0s 65,000/- to %etitioner accused %erson3here u%on accused %erson %arted 3ith che-ue 3hich +ater bounced %+ea b/ accused that he had +ost che-ue and even $ade %ub+ication about it bein, $issin, - Was concocted and cannot be re+ied u%on<ence conviction u/s 1"8 3as %ro%er - 4ut sentence of one /ear i$%rison$ent not bein, co$$ensurate 3ith ,ravit/ of offence 3as reduced to one $onth 2010Cri 8 9 6"" Case referred A)0 2005 4161 A)0 2002 'C 2907

70

7eath of person iss*ing che3*e 1 1eath of %erson issuin, che-ue -%rocess cannot be issued a,ainst his +e,a+ re%resentatives - 1eath of %erson issuin, che-ue - initiation cri$ina+ %rosecution a,ainst his 8 0 is abuse of %rocess of CourtCo$%+ainant +aunchin, untenab+e %rosecution a,ainst the$ is +iab+e to %a/ co$%ensation 2006Cri 8 9 222

71

Co&plaint filed 5y pri(ate party against respondent/for false co&plaint so ca*sed notice to co&plainant to pay co&pensation- is illegal. 1 1ischar,e of accused fro$ %rosecution - su$$on case - co$%+aint fi+ed b/ %rivate %art/ a,ainst res%ondent for a++e,ed offence of dishonour of che-ue u//s 1"8 ( ) Act is not a case instituted other3ise than on co$%+aint -%rovision of sec 258 Cr % C not attracted -Co$%+aint fi+ed a,ainst res%ondent accused offence for dishonouor of che-ue- Accused raisin, defence at %retria+ state -6rder %assed b/ .a,istrate considerin, said defence is to sto% %roceedin, and issuin, so cause notice to co$%+ainant to %a/ co$%ensation for fi+in, fa+se co$%+aint- is i++e,a+ and +iab+e to be -uashed 2006Cri 8 9 1660 Case referred 2001 Cri 8 9 ""22

72

Co&plainant had already ta;en reco*rse to ar5itration 1 Fuashin, of, on ,round that co$%+ainant had a+read/ ta7en recourse to arbitration %roceedin,- not %ro%er 2009Cri 8 9 787 Case referred 1999 A)0 'CW "492 &1999* 8 'CC 686

7"

Section 1)) Cr.P.C. not attract 1 ! N.I. $ct 1 'ec 1"8, 142, 14" ( ) Act and section 155 Cr ! C 1 1ishonour of che-ue - %rosecution for - had to be initiated b/ +od,in, of co$%+aint before court - 'ec 155 of Cr ! C 3hich re-uire c+ear %er$ission of .a,istrate for ta7in, co,niDance of non co,niDab+e offence b/ %o+ice cannot be invo7ed 3hen s%ecia+ %rocedure is %rescribed u/s 142, 14" ( ) Act - 6rder of 6fficer -)n - Char,e %o+ice station acce%tin, A ) 0 +iab+e to be -uashed 2008Cri 8 9 "650 Case referred A)0 2007 'C 1274 A)0 1999 'C 11"1

74

$lteration of dates on che3*e 1 'ec 87 1"8 ( ) Act inva+id che-ue - can be reva+idated vo+untari+/ b/ a+terin, the dates so as to ,ive fresh +ife to che-ue for another si# $onth - defence in that a+teration in the date 3as not $ade vo+untari+/ 3ou+d not constitute ,round for -uashin, che-ue dishonour co$%+aint )t is the -uestion of fact to be estab+ished on evidence durin, tria+ 2002 Cri 8 9 20" 'C

75

7ifference in a&o*nt &entioned in 4ords and fig*re 1 1ifference in a$ount $entioned in 3ords and fi,ure - che-ue cannot be ter$ed as inva+id -A$ount stated in 3ords sha++ be a$ount underta7en or ordered to be %aid 2009 Cri 8 9 121"

76

9ho can file the co&plaint 1 Who can fi+e co$%+aint - !o3er of attorne/ ho+der of %a/ee or a ho+der in due course - can fi+e co$%+aint %rovided ,uide+ines stated to be fo++o3ed - Co$%+aint can be %resented b/ ?!A on beha+f of the %a/ee %rovided - 2he co$%+aint sha++ be si,ned b/ the %a/ee hi$se+f - 2here sha++ be a+so an affidavit of the co$%+ainant in %roof of his e#ecution of ?!A, added to the %roduction of the said %o3er of attorne/ docu$ent - '3orn state$ent of ?!A can be recorded on the date of %resentation of the co$%+aint - '3orn state$ent of %a/ee &Co$%+ainant* sha++ have to be ta7en in a future date on his a%%earance in Court, the .a,istrate sha++ thorou,h+/ e#a$ine the state$ents of ?!A ho+der as 3e++ as the ori,ina+ co$%+aint and docu$ent %roduced before hi$ and e#ercise his discretion vested u/ s 202 and 20" Cr ! C 2he ,uide+ines stated are not e#haustive and in other circu$stances the .a,istrate sha++ e#ercise his discretion Cudicia++/ and in confor$it/ of other %rovisions of +a3 a%%+icab+e 2005Cri 8 9 "572 Case referred : A)0 2005 'C 48 A)0 2005 'C 4"9 2004Cri 8 9 4119 200"C0i 8 9 19"8 2002 Cri 8 9 266 2001Cri 8 9 "62" 2000Cri 8 9 9"0

77

<o*ncing of Che3*e is an indi(id*al lia5ility 1 A++e,ation that %etitioner accused had on+/ acco$%anied his son 3hen co$%+ainant advanced +oan to his son - (o a++e,ation of %etitioner havin, issued che-ue to co$%+ainant 3hich +ater bounced Co$%+ainant neither sho3s an/ dishonest or fraudu+ent intention on %art of %etition - Accused not indicates that he induced co$%+ainant to ,ive +oan - Che-ue ad$itted+/ 3ere issued b/ son of %etitioner - 'ince bouncin, of che-ue is an individua+ +iabi+it/- 6rder ta7en co,niDance of offences u/s 1"8 (, ) Act and 'ec 420 of !ena+ Code a,ainst %etitioner accused 3as +iab+e to be -uashed 2010 Cri 8 9 "99