TaxTMI 
TaxTMI 
2026 (5) TMI 634
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....unity of hearing is contrary to the proviso to Section 223^2 of the Bharatiya Nagarik Suraksha Sanhita, 2023. 2. It is the case of the complainant, Shiva Glass House, that it purchased a glass furnace and washing machine from Ms. Machotechs Technology Services (Proprietorship Firm of the Petitioner). Despite paying Rs.3,26,56,500 for the machines, which the accused-Petitioner failed to deliver. And, consequentially to cover the said amount, the accused-Petitioner issued a cheque dated 12.03.2025, which was dishonoured by the bank with the reason "Payment Stopped by Drawer." The complainant sent a demand notice on 28.03.2025, which was duly served, but the accused did not pay or respond. Due to this failure, the complainant filed a complaint under Section 1381 of the N.I. Act, alleging criminal liability on the part of the accused-Petitioner for dishonour of the cheque and seeking appropriate relief. 3. It is submitted by the learned counsel for the accused-Petitioner, Mr. Lal, that though the summons were issued citing wrong address, having come to know from her neighbour regarding the receipt of such summons, which were in the name of the accused-Petitioner, being a law-abid....
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....ffence under Section 1381 of the N.I. Act. The Apex Court in the case of Harshendra Kumar D. (supra) has noted the ignominy of an accused facing criminal prosecution and held: "xxx xxx xxx 22. Criminal prosecution is a serious matter; it affects the liberty of a person. No greater damage can be done to the reputation of a person than dragging him in a criminal case. xxx xxx xxx" 8A. The Hon'ble Supreme Court has further clarified that in an appropriate case, it would be a travesty of justice if the accused is relegated to trial. It is held that "for promotion of Justice or to prevent injustice or abuse of process, the High Court may look into the materials which have significant bearing on the matter at prima facie stage." 9. The Apex court "being Concerned with the large number of cases filed under Section 138 of the Negotiable Instruments Act, 1881 pending at various levels," "decided to examine the reasons for the delay in disposal of these cases". For which, suo motu writ petition (criminal) captioned as "Expeditious Trial of Cases under Section 138 of the NI Act, 1881" was registered and the same was disposed of by the order of constitution ....
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....e can be no two opinions that Criminal Trial causes hardship as succinctly stated in the case of Harshendra Kumar D. (supra), on which much reliance was placed by the learned counsel for the Petitioner. But, in the given case, this Court is not persuaded to hold that the order of cognizance has to be set aside and, the learned Trial Court has to be directed to give an opportunity to the Petitioner to substantiate his stand, as stated in the objection. Since the same would be against the schematic arrangement of the Act, as stated in the judgment of the Apex Court in the case of Sanjabij Tari (supra). In as much as the grounds as put forth in the objection can be pressed into service during the course of the trial, in the light of the guidelines as laid down in the case of Sanjabij Tari (supra) in Paragraph F and G thereof, which are extracted hereunder; "36.....(F) Since the object of section 143 of the Negotiable Instruments Act is quick disposal of the complaints under section 138 by following the procedure prescribed for summary trial under the Code, this court reiterates the direction of this court in Expeditious Trial of Cases under section 138 of NI Act, 1881, In ....
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.... 1. 138. Dishonour of cheque for insufficiency, etc., of funds in the account.-Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to 2[two] years, or with fine which may extend to twice the amount of the cheque, or with both: Provided that nothing contained in this section shall apply unless- (a) the cheque has been presented to the bank within a period of six months* from the date on which it is drawn or within the period of its validity, whichever is earlier; (b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for....
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....in such period; (c) no court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under section 138. (2) The offence under section 138 shall be inquired into and tried only by a court within whose local jurisdiction,- (a) if the cheque is delivered for collection through an account, the branch of the bank where the payee or holder in due course, as the case may be, maintains the account, is situated; or (b) if the cheque is presented for payment by the payee or holder in due course, otherwise through an account, the branch of the drawee bank where the drawer maintains the account, is situated. 5. 143. Power of Court to try cases summarily.- (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974) all offences under this Chapter shall be tried by a Judicial Magistrate of the first class or by a Metropolitan Magistrate and the provisions of sections 262 to 265 (both inclusive) of the said Code shall, as far as may be, apply to such trials: Provided that in the case of any conviction in a summary trial under this section, it shall be lawful ....