2020 (11) TMI 659 - HC - Indian Laws

Court sets aside summoning order in complaint case; remands for reevaluation of applicable laws.

VIKAS BAJAJ & ANR Versus M/s KANIKA INVESTMENTS LTD.

The High Court set aside the summoning order dated 11.3.2019 in complaint case No. 1565/2019 under Section 138 of the Negotiable Instruments Act, 1881. ... Summon Order - non-applicability of the Payment & Settlement Systems Act, 2007 - It was submitted on behalf of the petitioner that the prescribed procedure as provided under the Payment & Settlement Systems Act,2007, for determination of the aspect of liabilities for alleged commission of offences is provided thereunder and that the offences mentioned under the said enactment are not completely in pari materia with the provisions under the Negotiable Instruments Act, 1881 - HELD THAT:- Even the parties to CC No. 1566/2019, 1565/2019 (out of which the impugned order arises) and CC No. 1567/19, do not relate to the same parties and apparently no such common order as the order dated 11.3.2019 could have been passed in relation to CC No. 1565/19 with other cases 1566/19 and 1567/19. Furthermore, it was also essential for the learned Trial Court to consider the aspect of the applicability or otherwise of the provisions of the Payments & Settlement Systems Act, 2007, read with the terms of the contours of the complaint in CC No. 1565/19, in as much as it has been submitted specifically on behalf of the petitioner that the petitioner is entitled to be tried, if required, to be so tried under the appropriate provisions of law. Matter remanded back to the learned Trial Court to consider the aspect of summoning or otherwise of the accused in CC No. 1565/19 in terms of the averments made in the complaint CC No. 1565/19 qua the applicability of the provisions of the Payment & Settlements Systems Act, 2007 read with the provisions of the Negotiable Instruments Act, 1881, which be so determined in accordance with law - petition allowed by way of remand. Issues:Quashing of summoning order under Section 138 of the Negotiable Instruments Act, 1881.Analysis:The petitioners sought the quashing of the summoning order dated 11.3.2019 and subsequent proceedings regarding complaint case No. 1565/2019 under Section 138 of the Negotiable Instruments Act, 1881. The impugned order observed that a prima facie case under Section 138 had been made out against the accused. The petitioner contended that the complaint was not solely under the Negotiable Instruments Act, 1881, but also under the Payment & Systems Act, highlighting procedural discrepancies. Specific submissions were made, distancing the petitioners from other related cases, emphasizing lack of connection and awareness regarding those cases.The High Court noted that the complaints under CC Nos. 1566/19 and 1567/19 were distinct from the complaint in CC No. 1565/19, which was the subject of the petition. The petitioner argued against the applicability of the Payment & Settlement Systems Act, 2007 to the facts alleged in CC No. 1565/2019. It was emphasized that the parties involved in the different complaints were not the same, indicating the impropriety of passing a common order on 11.3.2019. The Court directed the matter to be remanded back to the Trial Court for a reevaluation of summoning the accused in CC No. 1565/19, considering the applicability of the Payment & Settlements Systems Act, 2007, in conjunction with the Negotiable Instruments Act, 1881.In conclusion, the High Court set aside the impugned order dated 11.3.2019 regarding CC No. 1565/2019 and remanded the matter to the Trial Court for a fresh determination on summoning the accused. The Trial Court was instructed to consider the applicability of the Payment & Settlements Systems Act, 2007, along with the provisions of the Negotiable Instruments Act, 1881, in deciding the course of action. The Criminal Miscellaneous Case (Crl.M.C. No. 1522/2020) was disposed of accordingly, with directions to send a copy of the order to the Trial Court for compliance.