2021 (7) TMI 956 - HC - Indian Laws

Dishonor of Cheque - supply of information about the location of the original case records - it was submitted that while the impugned order was passed, the facts with regard to the trial of the case under Section 138 of the NI Act was not taken into consideration by the writ Court as the complaint was initially instituted before the learned Chief Judicial Magistrate, Paschim Medinipur - HELD THAT - The order substantially has been passed in favour of the petitioner/appellant to take appropriate steps with regard to the case records pending with the learned Judicial Magistrate, Alipore as it appears that the case records is pending for inquiry and trial before the learned Judicial Magistrate, 2nd Court at Alipore. The report of the learned Chief Judicial Magistrate was communicated to the registry through District Judge, South 24 Parganas which reflects that the case record is pending for disposal before the learned Judicial Magistrate, 2nd Court at Alipore and is physically lying at the said Court. But the petitioner has not appeared before the learned Judicial Magistrate, 2nd Court at Alipore, although, substantially the order directing the petitioner/appellant herein was to take proper steps in the case before the Court concerned - a complaint case under Section 138 of the NI Act pending before the Magistrate ought to have been disposed of speedily in a summary manner in the letter and spirit of provision under Section 143 NI Act which provides for Power of Court to try cases summarily but the case could not be disposed of due to the transfer and retransfer of the case from the Court of CJM, Medinipur to the Court of CJM, Alipore due to solemn direction passed by the Hon ble Supreme Court. It is settled proposition of law regarding territorial jurisdiction of the Courts in case of dishonor of cheque which has completely been changed with the new amendments by the Negotiable Instrument (Amendment) Act, 2015 which retrospectively came into force on and from 15th July, 2015 - the learned trial Court being the Judicial Magistrate, 2nd Court at Alipore are directed to take steps for disposal of the complaint case No. C-4392 of 2016 as expeditiously as possible preferably with six months from the date of communication of this order. Appeal disposed off.

Summary

Issues:
1. Transfer of case records between different courts.
2. Delay in disposal of complaint case under Section 138 of N.I. Act.
3. Jurisdictional issues in cases of dishonor of cheques.
4. Applicability of recent amendments in the Negotiable Instrument Act.

Transfer of Case Records:
The appellant challenged an order regarding the transfer of case records pending with the Judicial Magistrate. The case involved dishonored cheques leading to a complaint under Section 138 of the N.I. Act. The case was transferred between courts due to jurisdictional considerations, causing confusion about the location of the case records. The High Court directed the Registrar to ascertain the current status of the records, which were found to be with the Judicial Magistrate at Alipore. The Court emphasized the need for the appellant to actively participate in the proceedings before the relevant court.

Delay in Disposal of Complaint Case:
The Court noted the delay in disposing of the complaint case under Section 138 of the N.I. Act. Despite the transfer and retransfer of the case between courts, the matter remained unresolved. The Court highlighted the importance of expeditious disposal of such cases in line with the provisions of the Act. Emphasizing the need for speedy resolution, the Court directed the trial court to expedite the disposal of the case within six months from the date of the order.

Jurisdictional Issues in Dishonor of Cheques:
The judgment discussed the jurisdictional aspects related to cases of dishonored cheques. Referring to previous Supreme Court decisions, the Court outlined the factors determining jurisdiction, such as the place of issuance, presentation, and dishonor of the cheque. The judgment highlighted the evolving legal landscape post the Negotiable Instrument (Amendment) Act, 2015, which introduced provisions for local jurisdiction and validation of pending cases. The Court emphasized the need for summary and speedy resolution of cases under Section 138 of the N.I. Act.

Applicability of Recent Amendments:
The Court acknowledged the amendments introduced by the Negotiable Instrument Act, 2015, impacting the territorial jurisdiction of courts in cases of dishonored cheques. The amendments aimed to streamline the inquiry and trial process for offenses under Section 138 of the N.I. Act. Citing Supreme Court directives, the Court stressed the importance of expeditious resolution of complaints filed under Section 138. The judgment concluded by directing the trial court to promptly dispose of the complaint case in question within a specified timeframe, ensuring compliance from all parties involved.