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Dishonour of cheque - no order for conversion into summons...

Court Upholds Summary Trial for Cheque Dishonor; Dismisses Petition to Convert to Summons Case, Citing Insufficient Grounds.

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Indian Laws August 2, 2024 Case Laws HC
Dishonour of cheque - no order for conversion into summons triable matter - application of Section 145(2) of Negotiable Instruments Act, 1881 - violation of natural justice - insufficient time granted, recall application rejected. Proceedings u/s 138 conducted as summary procedure unless Magistrate concludes need for conversion. Complainant's affidavit evidence with bank slip and dishonour material suffices, unnecessary to record further preliminary evidence. Affidavit treated as examination-in-chief, examinable u/s 264 CrPC. Summary procedure mandates judgment on not guilty plea unless Section 145(2) recall application filed. Supreme Court directions on expeditious trial, deeming service of one complaint as service for related cheque dishonour complaints. Complainant's affidavit evidence need not be re-deposed, can be considered at all trial stages. Accused has right to summon complainant/witnesses but must disclose probable grounds for recall. Court bound to summon on probable grounds disclosed. Petitioners failed to apply u/s 145(2) disclosing probable defence for recall. No grounds to recall or interfere in extraordinary jurisdiction. Petition dismissed.

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Acts Income Tax