LexSANJABIJ TARI versus KISHORE S. BORCAR & ANR.
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[2025] 9 S.C.R. 1515 : 2025 INSC 1158 Sanjabij Tari v. Kishore S. Borcar & Anr. (Criminal Appeal No. 1755 of 2010) 25 September 2025 [Manmohan* and N.V. Anjaria, JJ.] Issue for Consideration The present appeal has been filed challenging the ex-parte judgment and order dated 16.04.2009 passed by the High Court acquitting the respondent no.1-accused u/s.138 of the Negotiable Instruments Act, 1881 and reversing the concurrent judgments of the Trial Court and the Sessions Court. Headnotes† Negotiable Instruments Act, 1881 – Chapter XVII (Sections 138 to 148): Held: The provisions contained in Chapter XVII provide that where any cheque drawn by a person for the discharge of any liability is returned by the bank unpaid for the reason of the insufficiency of the amount of money standing to the credit of the account on which the cheque was drawn or for the reason that it exceeds the arrangements made by the drawer of the cheque with the banker for that account, the drawer of such cheque shall be deemed to have committed an offence – In that case, the drawer, without prejudice to the other provisions of the said Act, shall be punishable with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque, or with both. [Para 13] Negotiable Instruments Act, 1881 – Chapter XVII (Sections 138 to 148) – Intent of: Held: The intent behind introducing Chapter XVII is to restore the credibility of cheques as a trustworthy substitute for cash payment and to promote a culture of using cheques – Further, by criminalizing the act of issuing cheques without sufficient funds or * Author 1516 [2025] 9 S.C.R. Supreme Court Reports for other specified reasons, the law promotes financial discipline, discourages irresponsible practices and allows for a more efficient and timely resolution of disputes compared to the previous pure civil remedy which was found to involve the payee in a long-drawn out process of litigation. [Para 14] Negotiable Instruments Act, 1881 – ss.118 and 139 – District Courts and High Courts are not giving effect to presumptions: Held: This Court takes judicial notice of the fact that some District Courts and some High Courts are not giving effect to the presumptions incorporated in Sections 118 and 139 of NI Act and are treating the proceedings under the NI Act as another civil recovery proceedings and are directing the complainant to prove the antecedent debt or liability – This Court is of the view that such an approach is not only prolonging the trial but is also contrary to the mandate of Parliament, namely, that the drawer and the bank must honour the cheque, otherwise, trust in cheques would be irreparably damaged. [Para 21] Negotiable Instruments Act, 1881 – s.138 – Keeping in view the massive backlog of cheque bouncing cases, the following directions are issued: Held: i) In all cases filed u/s.138 of the NI Act, service of summons shall not be confined through prescribed usual modes but shall also be issued dasti i.e. summons shall be served upon the accused by the complainant in addition – The Trial Courts shall further resort to service of summons by electronic means in terms of the applicable Notifications/Rules, if any, framed under sub- Sections 1 and 2 of s.64 and under Clause (i) of Section 530 and other provisions of the BNSS, 2023 like Delhi BNSS (Service of Summons and Warrants) Rules, 2025; (ii) The complainant shall file an affidavit of service before the Court – In the event such affidavit is found to be false, the Court shall be at liberty to take appropriate action against the complainant in accordance with law; (iii) In order to facilitate expeditious settlement of cases u/s.138 of the NI Act, the Principal District and Sessions Judge of each District Court shall create and operationalise dedicated online payment facilities through secure QR codes or UPI links – The complainant shall also be informed of such payment and upon confirmation of receipt, appropriate orders regarding release of such money and compounding/closure of proceedings u/s.147 of the NI Act and/ [2025] 9 S.C.R. 1517 Sanjabij Tari v. Kishore S. Borcar & Anr. or s.255 of Cr.PC/278 BNSS, 2023 may be passed by the Court in accordance with law; (iv) Each and every complaint u/s.138 of the NI Act shall contain a synopsis in the format which shall be filed immediately after the index (at the top of the file) i.e. prior
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