TaxTMI 
TaxTMI 
2026 (8) TMI 1132
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....the petitioner was the accused and the respondent was the complainant before the learned Magistrate, (Trial Magistrate). Accordingly, the parties shall hereinafter be referred to as "petitioner and respondent" respectively. 3. The petitioner has invoked the inherent jurisdiction of this Court under Section 482 of Criminal Procedure Code (CrPC) seeking quashing of the complaints filed by the respondent under Section 138 of Negotiable Instruments Act, 1881 (NI Act) and the consequent cognizance orders dated 8 October 2022 and 22 December 2022, whereby the Trial Magistrate, while taking cognizance of the offence, issued process against the petitioner. The petitioner has also questioned the order dated 24 March 2023 whereby a warrant for pro....
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....not materialize. 7. It is also equally noteworthy that the petitioner had, in an earlier round of litigation, approached this Court challenging the order of the Trial Magistrate whereby he was directed to deposit 20% of the cheque amount [CRM(M) No. 481/2023]. The High Court has set-aside the trial court order vide order dated 19 May 2025. The other attempt of the petitioner failed at the threshold, whereby the petition No. CRM(M) No. 496/2023 was dismissed as withdrawn. 8. Certain developments during intervening period are also worth noting. These petitions were at one point of time dismissed due to continuous absence of the petitioner, but were later restored. During the interregnum, the Trial Magistrate recalled the non-bailable wa....
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.... also contended that multiple cheques form the subject matter of one complaint under Section 138 of the NI Act, hence the complaint themselves are not maintainable. 13. Mr S. T. Hussain, learned senior counsel for the petitioner, also vehemently argued that there is no proof of reflection of such a huge transaction amounting to Rs. 45.50 lacs in the income tax return of the complainant and, therefore, no presumption under Section 139 of the NI Act can be raised. In this regard, learned senior counsel made reference to Section 269-B of Income Tax Act, 1961. (Act of 1961). 14. Ex-adverso, Mr. M. Y. Bhat, learned senior counsel for the respondent argued that the respondent has filed two independent complaints under Section 138 of the NI ....
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....ther actual service of notice was effected, or what is the effect of any settlement. All these questions are required to be decided by the trial Court in the light of the presumption under Section 139 of the NI Act. 18. When defence evidence has commenced and is almost complete, interference under Section 482 CrPC is ordinarily uncalled for. The trial court is the proper forum to appreciate the evidence. This is a case which also necessitates examination of the conduct of the petitioner, who has repeatedly stalled the proceedings and, even after the earlier order of this Court directing speedy disposal, has again at the fag end of the trial invoked the jurisdiction of this Court under Section 482 CrPC. Such practice is required to be dep....
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....ection 269SS of the Income Tax Act, 1961, is subject only to a penalty under Section 271D of the said Act. It has further been held that any violation of Section 269SS would not render the transaction unenforceable under Section 138 of the NI Act, nor would it rebut the presumptions under Sections 118 and 139 of the NI Act, because the payee/holder in due course is liable only to the penalty prescribed under the Income Tax Act. The argument that any transaction above Rs. 20,000/- is illegal and void and, therefore, does not fall within the definition of "legally enforceable debt" cannot be countenanced. In fact, the reference by learned senior counsel to Section 269-B of the Act of 1961 itself is self-defeating and misconceived; the relevan....
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.... opportunity to adduce his evidence in an open trial by an impartial judge who can dispassionately weigh the material to reach the truth of the matter. At this point, one might benefit by recalling the words of Harry Brown, the American author and investment advisor who so aptly said - "A fair trial is one in which the rules of evidence are honored, the accused has competent counsel, and the judge enforce the proper court room procedure - a trial in which every assumption can be challenged." We expect no less and no more for the appellant." 25. The High Court cannot conduct a mini trial or a roving enquiry into disputed questions of fact such as, existence of a legally enforceable debt, actual service of notice, etc. These are matters fo....