Bombay High Court releases practice guidelines for Trial Courts under Section 138 of Negotiable Instruments Act

Bombay High court Law Insider

Ambika bhardwaj

Published On: January 30, 2022 at 11:58 IST

The Bombay High Court has released practice guidelines to Trial Court Judges concerning the Trial of Cases that are under Section 138 of the Negotiable Instruments Act.

The guidelines were released by Registrar General Mahendra W Chandwani in accordance with the Supreme Court’s instructions in the Suo Motu Case on rapid disposal of cheque bouncing Cases under Section 138 of the Negotiable Instruments (NI) Act.

The guidelines are as follows:

  • Magistrates with Jurisdiction to try Offences must record cogent and sufficient factors before transferring a Complaint under section 138 from Summary Trial to Summons Trial in accordance with the Second Proviso of Section 143 of the NI Act
  • Upon receipt of a Complaint in which the Accused is found to be outside the Territorial Jurisdiction of the Magistrate associated, the Magistrate should undertake an Inquiry under Section 202 of the Code of Criminal Procedure (CrPC) to determine whether there are Legitimate reasons to proceed against the Accused.
  • During such Inquiry, the Evidence of Witnesses on behalf of the Complainant may be allowed to be taken on Affidavit, or in appropriate Cases, the Magistrate may not assert on Examination of the Witness for satisfaction as to the adequacy of grounds for Proceeding.
  • Service of Summons in one Complaint lodged under Section 138 of the NI Act forming part of a transaction should be regarded as deemed service by the Trial Court in respect of all Complaints lodged before the same Court
  • The inherent Authority to assess the release of Summons should not affect the Trial Court’s Authority under Section 322 of Criminal Procedure Code to reassess the Order of issue of process if it is brought to the Court’s attention that it does not have Jurisdiction to try the Complaint.
  • Section 258 of Criminal Procedure Code does not apply to Complaints under Section 138. Section 143 uses the words “as far as may be” only in relation to the Application of Sections 262 to 265 of the Code and the Summary Procedure to be followed for Trials.
  • Appellate Courts where Appeals against Judgments in Complaint under Section 138 are currently on hold are instructed to make an attempt to reach a settlement through Mediation.

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