LexINDIAN BANK ASSOCIATION AND OTHERS versus UNION OF INDIA AND OTHERS
Open in Lexace · Ask the AI about this caseJudgment (excerpt)
A B c [2014] 5 S.C.R. 386 INDIAN BANK ASSOCIATION AND OTHERS v. UNION OF INDIA AND OTHERS (Writ Petition (Civil) No. 18 of 2013) APRIL 21, 2014. [K.S. RADHAKRISHNAN AND VIKRAMAJIT SEN, JJ.] Negotiable Instruments Act, 1881: s.138 - Object of - Discussed. ss. 143 to 147 (as inserted by) Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002) - Dishonour of cheques - Summary procedure - Grievance of the petitioner that the introduction of ss. 138 to 142 of the D Negotiable Instruments Act could not achieve the desired result for dealing with dishonored cheques and inspite of insertion of new ss.143 to 147 in the Act, no uniform practice was being followed by the various Magistrate courts in the country - Held: Amendment Act, 2002 has to be given effect E in its letter and spirit - s. 143 stipulates that notwithstanding anything contained in Cr.P.C., all offences contained in Chapter XVII of the Negotiable Instruments Act dealing with dishonour of cheques for insufficiency of funds, etc. shall be tried by a Judicial Magistrate and the provisions of ss.262 to 265 Cr.P. C. prescribing procedure for summary trials, shall F apply to such trials - Supreme Court has also laid down certain guidelines while interpreting ss. 138 and 147 to encourage litigants in cheque dishonour case to opt for compounding during early stages of litigation to ease choking of criminal justice system - Few High Courts have also laid G down certain procedures for speedy disposal of Sl1Ch cases - Therefore, directions issued to Criminal courts all over country dealing with the cases of dishonour of cheques to take immediate cognizance of the matter; to issue notice via email; H 386 , ... ~ . INDIAN BANK ASSOCIATION v. UNION OF INDIA 387 to make instant settlement ofb~-~'e ~ndfbllow ·5~/d''procedure A ·: ... :' ··q .:·-:-··;·: :."': .... ,, '-,'·. _-. •''.. - . for the speedy and expeditious disposal of cases ...: ·Code of Criminal Procedure, 1973 ...:·~5:262 to 265. ' · ·· ·. · - .. / ... :.:·.;: . . . .•.. In the instant writ petitioh, the ·!jrievance of the petitioner was that the introduction of sections 138 to·142 8 of the Negotiable Instruments Act has nof achieved. the desired result for dealing with dishonored cheq!JeS and inspite of insertion. of new se.ctions 143 to 147 in the Act by Negotiable · Instruments (Amendment and Miscellaneous Provisions) Act, 2002, no uniform practice was being followed by the v_arious Magistrate courts in C the country, as a result of which, the purpose for which the amendments were incorporated has 11ot been achieved. The petitioner is seeking appropriate· guidelines/directions to be followed by all Courts within the territory of India competent to try a complaint, under' D Section 138 of the Negotiable Instruments Act, 1881 to follow and comply with the mandate of Sectfon 143 of the said Act read with Sections 261 to 265. of Criminal Procedure Code, 1973 for summary trial of such. complaints filed or pending before the said Co.urts; a writ E of mandamus for compliance with the guidelines. so laid down and a writ of mandamus to the respondents, to adopt necessary policy and legislative changes to deal with cases relating to dishonor of cheqeus so that the same are expeditiously disposed off in accor~ance with F the intent of the Act and the guidelines. Disposing of the writ petition, the Court HELD: 1. The objectives of the proceedings of Section 138 of the Negotiable Instruments Act are that the G .cheques should not be used by persons as a tool of 'Ciishonesty and when cheque is issued by a person, it must be honoured and if it is not honoured, the person is given an opportunity to pay the cheque amount by issuance of a notice and if he still does not pay, he inust H · 388 SUPREME COURT REPORTS [2014] 5 S.C.R. A face the criminal trial and consequences. Sections 138 to 142 of the Act were found to be deficient in dealing with the dishonoured cheques. In the said circumstances, the legislature inserted ·new Sections 143 to 147 by the Negotiable Instruments (Amendment and Miscellaneous B Provisions) Act, 2002, which were brought into force w.e.f. 6th February, 2003. [Paras 6, 9] [397-A; 399-E] Electronics Trade & Technology Development Corporation Ltd., Secunderabad v. Indian Technologists & C Engineers (Electronics) (P) Ltd. and Anr.•(1996) 2 SCC 739: 1996 (1) SCR 843; Goa Plast (P) Ltd.
Excerpt shown. Read the full judgment & AI analysis in Lexace.