2022 (7) TMI 513 - HC - Indian Laws

Dishonor of Cheque - power vested in the learned Court below under Section 311 Cr.P.C. is not exercised - HELD THAT - In the instant case, the petitioner has taken the loan from the bank and he has issued cheques to the bank towards payment of loan amount. It is not in dispute that consideration for the issuance of cheques is the loan amount, which the petitioner was to repay to the bank. It is also not in dispute that cheques bear signatures of the petitioner. In these circumstances, this Court has no reason to come to the conclusion that any other evidence is required to be adduced on record in proceedings under Section 138 of the Act, which are summary proceedings, for the simple reason that when the loan was taken, the petitioner supposed to have mortgaged the property to the bank by depositing the title deeds and thus, the bank had adopted its normal procedure and so judicial notice of the same can be taken. There is no relevance of witness to be examined when proceedings are based upon the Negotiable Instruments, as the petitioner has himself admitted that cheques were signed/issued by him and the consideration is also there for loan amount - Further, it is clear from the action of the respondents that he wanted to delay the proceedings by one way or the other, as one after the another, he kept on moving different applications when the case was at the final stage. Petition dismissed.

Summary

Issues:
1. Application under Section 311 Cr.P.C. for adducing additional evidence.
2. Allegation of fraud committed by the bank.
3. Dismissal of application under Section 311 Cr.P.C.
4. Multiple applications filed for delaying proceedings.
5. Transfer of case to another Court.
6. Invocation of powers under Section 311 Cr.P.C. to meet the ends of justice.
7. Requirement of additional evidence in summary proceedings under Section 138 of the Negotiable Instruments Act.
8. Relevance of witness examination in proceedings based on Negotiable Instruments.
9. Allegations of delaying proceedings by filing multiple applications.

Analysis:

1. The petitioner filed an application under Section 311 Cr.P.C. seeking to adduce evidence related to the fraud allegedly committed by the bank. The petitioner claimed that the bank had taken blank cheques under false pretenses and mortgaged properties without consent. The petitioner argued that failure to exercise the power under Section 311 Cr.P.C. by the lower court necessitated intervention by the High Court.

2. The respondent countered the petitioner's claims, stating that the petitioner had taken a loan from the bank, which was undisputed. The respondent argued that the multiple applications filed by the petitioner were attempts to delay the proceedings. The respondent highlighted that the petitioner had previously filed applications under different sections without challenging previous orders, indicating a pattern of delay tactics.

3. The High Court reviewed the sequence of events, noting that the petitioner had filed various applications under different sections, including one for transferring the case to another court. The Court emphasized that the power under Section 311 Cr.P.C. should be invoked to meet the ends of justice. The Court found that the petitioner's claims did not warrant additional evidence in summary proceedings under Section 138 of the Negotiable Instruments Act.

4. The Court determined that the petitioner's admission of issuing cheques for the loan amount, coupled with the bank's standard procedures for loan processing, negated the need for further evidence. The Court concluded that the petitioner's actions, including filing repetitive applications at a critical stage, aimed at delaying the proceedings rather than seeking justice.

5. Consequently, the High Court dismissed the petition, citing its lack of merit and ordered each party to bear their own costs. The Court also disposed of any pending applications. The judgment underscored the importance of upholding procedural integrity and preventing abuse of legal processes for undue delays.