2023 (9) TMI 633 - SC - Indian Laws

Dishonour of Cheque - inquiry under Section 202 of the Code of Criminal Procedure, 1973 not held - respondent was having its office outside the jurisdiction of the Court of the learned Magistrate - HELD THAT - The Trial Court is directed to proceed from the stage of Section 202 of the CRPC. While doing so, the learned Magistrate will be guided by the direction issued by the Constitution Bench which says that For the conduct of inquiry under Section 202 of the Code, evidence of witnesses on behalf of the complainant shall be permitted to be taken on affidavit. In suitable cases, the Magistrate can restrict the inquiry to examination of documents without insisting for examination of witnesses. Appeal allowed in part.

Summary

Issues Involved:
The issue involves the legality of the order issuing process under Section 138 of the Negotiable Instruments Act, 1881 and the necessity of holding an inquiry under Section 202 of the Code of Criminal Procedure, 1973 due to the respondent having its office outside the jurisdiction of the court.

Judgment Summary:

Issue 1 - Legality of the Order Issuing Process:
The appellant, as the complainant in a case under Section 138 of the Negotiable Instruments Act, had the Judicial Magistrate issue process on the complaint. The High Court, however, found the order illegal due to the respondent's office being outside the court's jurisdiction. The High Court set aside the order issuing process without further direction to hold an inquiry under Section 202 of the CRPC.

Issue 2 - Guidelines for Conducting Inquiry under Section 202 of the CRPC:
Referring to a previous decision, the Supreme Court directed that for inquiries under Section 138 of the NI Act, evidence of witnesses on behalf of the complainant can be taken on affidavit. The Magistrate may restrict the inquiry to examination of documents in suitable cases.

Judgment Details:
The Supreme Court modified the impugned judgment and directed the Trial Court to proceed from the stage of Section 202 of the CRPC. The Trial Court should follow the guidelines set by the Constitution Bench for conducting the inquiry. The appeal was partly allowed, and the inquiry under Section 202 of the CRPC was ordered to be conducted expeditiously within one month from the receipt of the order by the Trial Court.

This summary provides a detailed breakdown of the issues involved in the legal judgment, including the legality of the order issuing process and the guidelines for conducting the inquiry under Section 202 of the CRPC.