IN RE: EXPEDITIOUS TRIAL OF CASES UNDER SECTION 138 OF N.I. ACT 1881 versus .

IN RE: EXPEDITIOUS TRIAL OF CASES UNDER SECTION 138 OF N.I. ACT 1881 versus .

The Court directed remedial measures to expedite disposal of Section 138 NI Act complaints: High Courts should issue practice directions requiring Magistrates to record reasons before converting summary trials to summons trials; where accused resides outside territorial jurisdiction the Magistrate must hold an inquiry under Section 202 CrPC and may accept complainant's and witnesses' evidence on affidavit under Section 145 NI Act, and in suitable cases limit inquiry to documents; Section 258 CrPC principles cannot be read into Section 143 NI Act and the decision in Meters and Instruments (2018) insofar as it conferred inherent power on trial courts to discharge accused is not correct law;...

Parties
Respondent: Union of India; Respondent: Reserve Bank of India; Respondent: Indian Banks' Association; Amicus Curiae: Sidharth Luthra; Amicus Curiae: K. Parameshwar
Jurisdiction
India
Judgment Date
16 April 2021
Procedural Posture
Suo Motu Writ Petition (criminal) / Interim Order and Directions Issued; Matter Referred to a Committee; Listed for Further Hearing Before a 3 Judge Bench After Eight Weeks
Outcome
Interim directions issued; matter referred to a Committee to consider remaining recommendations and legislative amendment; listed after eight weeks for further hearing before a 3-Judge Bench.
Legal Topics
Section 138 NI Act, Summary Trial Versus Summons Trial, Service of Summons, Section 202 Cr PC Inquiry, Examination of Witnesses on Affidavit (section 145 NI Act), Section 219 and Section 220 Cr PC Joinder of Offences, Inherent Powers of Magistrate, Mediation, Recommendation for Legislative Amendment
Negotiable Instruments Act, 1881 Code of Criminal Procedure, 1973 Criminal Law Banking Law and Procedure Section 138 NI Act Summary Trial Versus Summons Trial Service of Summons Section 202 Cr PC Inquiry +5 more

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Parties

Union of India

Respondent

Reserve Bank of India

Respondent

Indian Banks' Association

Respondent

Sidharth Luthra

Amicus Curiae

K. Parameshwar

Amicus Curiae

Procedural Posture

Suo Motu Writ Petition (criminal) / Interim Order and Directions Issued; Matter Referred to a Committee; Listed for Further Hearing Before a 3 Judge Bench After Eight Weeks

Legal Issues

  1. 1 Pendency and delay in disposal of complaints under Section 138 NI Act and its impact on criminal docket
  2. 2 Mechanical conversion of summary trials under Section 143 NI Act to summons trials without recording reasons
  3. 3 Whether Magistrates must hold inquiry under Section 202 CrPC before issuing process where accused resides outside territorial jurisdiction in Section 138 complaints

Ratio Decidendi

The Court directed remedial measures to expedite disposal of Section 138 NI Act complaints: High Courts should issue practice directions requiring Magistrates to record reasons before converting summary trials to summons trials; where accused resides outside territorial jurisdiction the Magistrate must hold an inquiry under Section 202 CrPC and may accept complainant's and witnesses' evidence on affidavit under Section 145 NI Act, and in suitable cases limit inquiry to documents; Section 258 CrPC principles cannot be read into Section 143 NI Act and the decision in Meters and Instruments (2018) insofar as it conferred inherent power on trial courts to discharge accused is not correct law;...

Court Disposition

Interim directions issued; matter referred to a Committee to consider remaining recommendations and legislative amendment; listed after eight weeks for further hearing before a 3-Judge Bench.

Orders

  • High Courts are requested to issue practice directions to Magistrates to record reasons before converting trials of complaints under Section 138 NI Act from summary trial to summons trial.
  • Inquiry shall be conducted on receipt of complaints under Section 138 NI Act to arrive at sufficient grounds to proceed where accused resides beyond territorial jurisdiction of the court (Section 202 CrPC).