2020 (9) TMI 296 - HC - Indian Laws

Direction to deposit 20% of the cheque amount in terms of Sec. 143-A of the Negotiable Instruments Act - offences punishable u/s 138 of the N.I. Act - discharge of legally enforceable debt due from the accused to the complainant - HELD THAT - While it is true that there is no compulsion for the accused to plead/prove his defence or rebut the aforesaid presumption at the present stage of the proceedings, in the face of the aforesaid material on record and in the absence of any material to indicate the defence of the accused or that he has rebutted the presumption arising under Section 139 of the N.I Act, in the facts of the case on hand, it can not be said that the trial court exercised its discretion erroneously or improperly by passing the impugned order warranting interference by this Court under Section 482 Cr.P.C. The contention of the petitioner that in the absence of an application filed under Section 143-A of the N.I Act by the complainant, it was not open for the trial court to invoke the said provision is misconceived and untenable. A plain reading of the said provision coupled with the very object/intendment of the legislature in introducing the said provision by way of amendment is sufficient to indicate that the trial court was fully justified in invoking the said provision and passing the impugned discretionary order even without there being an application made in that regard by the complainant. As such, even this contention urged on behalf of the accused deserves to be rejected. The petitioner-accused is granted a further period of 60 days from this day to deposit 20% of the cheque amount before the trial Court - It is directed that upon such deposit being made, the trial Court shall invest the same in fixed deposit in any nationalized bank immediately till disposal of the case in the trial Court. Petition dismissed.

Summary

Issues:
Petition seeking quashing of trial court order directing deposit of 20% of cheque amount under Sec. 143-A of N.I. Act.

Analysis:
1. Background and Allegations:
- Respondent filed complaint under N.I. Act against accused for dishonoured cheque.
- Accused failed to comply with demand after receiving statutory notice.

2. Trial Court Proceedings:
- Trial court took cognizance of offence under Sec. 138 N.I. Act.
- Accused denied plea and opted for trial.
- Trial court invoked Sec. 143-A and directed accused to deposit 20% of cheque amount.

3. Petitioner's Arguments:
- Petitioner contended trial court erred in passing order without reasons.
- Argued Sec. 143-A usage of 'may' indicates discretion, not compulsion.
- Cited Madras HC decision supporting arguments.

4. Respondent's Arguments:
- Supported trial court's discretionary order under Sec. 143-A.
- Opposed interference by higher court.

5. Court's Consideration:
- Examined material on record and rival submissions.
- Emphasized court's power under Sec. 482 Cr.P.C. to prevent abuse of process or secure justice.

6. Court's Decision:
- Upheld trial court's order for following reasons:
a) Accused did not challenge earlier cognizance order and failed to present defense.
b) Trial court's order was legal and proper given circumstances.
c) Invocation of Sec. 143-A without application was justified.
d) Lack of reasons in order did not warrant interference.
e) Addressed concerns of refund if accused acquitted.
f) Dismissed petitioner's reliance on Madras HC decision.

7. Final Order:
- Dismissed criminal petition, confirming trial court's order.
- Granted accused 60 days to deposit 20% of cheque amount.
- Directed investment of deposited amount in fixed deposit.
- Prohibited withdrawal until case disposal.
- Ordered expeditious case disposal within six months.
- Left open decision on merits to trial court.

This detailed analysis outlines the legal judgment's context, arguments presented, court's considerations, and final decision regarding the petition seeking quashing of the trial court's order under Sec. 143-A of the Negotiable Instruments Act.