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Prakash Industries Ltd Petitioner v. State And Ors S
Judicial Opinion Summary — J.D. Kapoor, J.
Factual and Procedural Background
M/s SBI Capital Markets Ltd. filed a complaint under Section 138 of the Negotiable Instruments Act against M/s Prakash Industries Ltd. and others (including its Managing Director, Vice President (General) and two General Managers). Summons were issued to the accused by the Metropolitan Magistrate on 9 July 1999. By administrative order of the High Court, complaints under Section 138 were transferred to the Courts of Additional Sessions Judges and this matter was assigned to Sh. Prem Kumar, Additional Sessions Judge, New Delhi.
The accused (petitioners) moved an application before the Additional Sessions Judge seeking recall of the summoning order or dropping the proceedings on the ground that no case was made out against them. The learned Additional Sessions Judge dismissed that application holding that the learned trial court does not have power to recall, review, alter or vary the summoning order. The judge relied on a decision of the Delhi High Court (Mohd. Hashim Masood v. State) and on Nilamani Routray v. Bennet Coleman & Company Ltd., rather than applying the Supreme Court decision in K.M. Mathews v. State of Kerala. This opinion reviews and decides the petitions attacking the ASJ's order.
Legal Issues Presented
- Whether an accused in a complaint case is entitled to apply to the Magistrate to drop the proceedings even after process (summons) has been issued.
- Whether a trial court (or Magistrate) has the power to recall, vary or review a summoning order in a complaint case.
Arguments of the Parties
Petitioners' (Accused) Arguments
- The petitioners relied on the Supreme Court decision in K.M. Mathews v. State of Kerala, which the petitioners' counsel contended allows an accused to plead before the Magistrate that process ought not to have been issued and permits the Magistrate to drop proceedings if, on reconsideration, the complaint discloses no offense against the accused.
Learned Additional Sessions Judge's Position / Reasoning (as reported)
- The learned ASJ dismissed the recall/drop applications on the ground that the summoning order "cannot be recalled, reviewed, altered or varied in any manner" and that the trial court lacked jurisdiction to do so in a summons case.
- The ASJ relied on Nilamani Routray v. Bennet Coleman & Company Ltd. (1998 (8) SCC 594) and on a Single Judge decision of the Delhi High Court in Mohd. Hashim Masood v. State (2000 (1) JCC 24), treating those authorities as binding or persuasive in support of his view that he could not revisit the summoning order.
- The learned ASJ also invoked a principle of "judicial discipline" that, in his view, required following his own High Court's decision.
Table of Precedents Cited
| Precedent | Rule or Principle Cited For | Application by the Court |
|---|---|---|
| K.M. Mathews v. State of Kerala, (1992) 1 SCC 217 | Holds that it is open to the accused to plead before the Magistrate that process ought not to have been issued; the Magistrate may drop proceedings on reconsideration if complaint discloses no offence; the order issuing process is interim and can be varied or recalled. | The court treated K.M. Mathews as the controlling and binding precedent. It held that the learned ASJ should have followed K.M. Mathews and set aside the ASJ's order, directing the ASJ to decide the petitioners' applications on merits in accordance with K.M. Mathews. |
| Nilamani Routray v. Bennet Coleman & Company Ltd., 1998 (8) SCC 594 | Contains observations that K.M. Mathews may require reconsideration; the Supreme Court found substance in the contention that a power of review must be conferred by law and recommended that the matter be heard by a Bench of three Judges. | The court observed that Nilamani Routray did not lay down law contrary to K.M. Mathews nor did it overrule it; rather, Nilamani merely found substance in a contention and recommended referral to a larger Bench. The ASJ's reliance on Nilamani as displacing K.M. Mathews was rejected as incorrect. |
| Mohd. Hashim Masood v. State, 2000 (1) JCC 24 (Delhi High Court) | As reported, relied on Nilamani Routray and treated the High Court view as supporting non-reviewability of summoning orders in a summons case. | The court concluded that the ASJ wrongly treated this High Court decision as superseding the Supreme Court's decision. The opinion criticizes reliance on this decision when K.M. Mathews remains binding. |
Court's Reasoning and Analysis
The court's analysis proceeds from the factual record and a close comparison between the present matter and the authorities relied upon:
- The court notes the procedural posture: a complaint under Section 138 NI Act, recording of pre-summoning evidence, and issuance of summons. The petitioners then sought recall/drop of the summoning order on the ground that no case was made out against them.
- The court reproduced the controlling passage from K.M. Mathews which explicitly permits the Magistrate to drop proceedings even after process has been issued where the complaint, on reconsideration, does not disclose an offence.
- The learned ASJ's reliance on Nilamani Routray was examined. The court stressed that Nilamani did not lay down a rule contrary to K.M. Mathews; instead, the Supreme Court in Nilamani merely found merit in a contention that warranted consideration by a larger Bench. Therefore Nilamani did not operate to displace or overrule K.M. Mathews.
- The court criticized the ASJ's invocation of a principle of judicial discipline requiring adherence to his own High Court's decision (Mohd. Hashim Masood), stating that a High Court decision cannot override the binding precedent of the Supreme Court under Article 141 of the Constitution. The opinion records that the learned ASJ was aware of Article 141 but nevertheless proceeded to follow the High Court decision.
- The court emphasized that the facts and procedural posture of the instant case are in no way distinguishable from those in K.M. Mathews (both being private complaints, both involving pre-summoning evidence and subsequent summons), and thus there was no valid basis to refuse application of K.M. Mathews.
- Given these considerations, the court concluded that the ASJ's conclusion — that the summoning order could not be recalled, reviewed or varied — was erroneous, contrary to the law laid down by the Supreme Court, and constituted a serious misapplication of legal principle (even bordering on contempt, in the court's view).
- Accordingly, the court found it appropriate to allow the petitions, set aside the impugned order, and remit the matter to the learned ASJ with directions to decide the petitioners' applications on merits in accordance with the law laid down in K.M. Mathews.
Holding and Implications
Holding: The petitions are allowed and the impugned order of the learned Additional Sessions Judge is set aside. The court directed that the Additional Sessions Judge must decide the petitioners' applications on their merits applying the law stated in K.M. Mathews v. State of Kerala.
Implications and direct consequences:
- The learned ASJ's order dismissing the recall/drop applications was quashed; the applications must now be examined on merits in accordance with K.M. Mathews.
- The opinion instructs that a copy of the order be sent to all Judicial Officers for guidance, to prevent similar departures from binding Supreme Court precedent by other Metropolitan Magistrates or Additional Sessions Judges.
- The court stressed that K.M. Mathews remains binding and continues to "hold the field" until reviewed or reversed; the opinion does not purport to lay down new law or to overrule existing Supreme Court authority.
This summary is based exclusively on the content of the provided opinion and does not add or infer facts or law beyond what appears in the opinion itself.
J.D Kapoor, J.:—
This case demonstrates as to how Sh. Prem Kumar the learned Additional Sessions Judge consciously tried to ignore the verdict given by Hon'ble Supreme Court in K.M Mathews v. State of Kerela, (1992) 1 SCC 217 and dismissed the applications of the petitioners seeking recall of the summoning order for the offence punishable under Section 138 of the Negotiable Instrument Act vide order dated 26.4.2003 by conveniently taking the shelter under the judgment of this Court delivered in Mohd. Hashim Masood v. State, 2000 (1) JCC 24 as if he was bound by the view taken by the High Court and not by the Supreme Court on the proposition of law whether the accused is entitled to move the Magistrate for dropping the proceedings in a complaint case even after the process of summon has been issued against him.
2. Facts germane for the proposition of law are like this:-
M/s SBI Capital Markets Ltd. filed a complaint under Section 138 of Negotiable Instrument Act against M/s Prakash Industries Ltd & Ors its Managing director, Vice President (General) and two General Managers. They were summoned as accused vide order dated 9.7.99 by the Metropolitan Magistrate. By administrative order of the High Court, the complaints under Section 138 of Negotiable Instrument Act were transferred to the Courts of Additional Sessions Judges and this case was assigned to Sh. Prem Kumar, learned Additional Sessions Judge, New Delhi. Feeling aggrieved of the summoning order the petitioners moved an application before the learned ASJ for recalling the summoning order or for dropping the proceedings against them. The said application was dismissed by the learned ASJ on the ground that the learned trial court does not have power to recall, review, alter or vary the summoning order and, therefore, the same cannot be considered. To be fair to the Id. ASJ he referred to the KM. Mathews case relied upon by learned counsel for the petitioners wherein following view was taken by the Supreme Court:-
“It is open to the accused to plead before the Magistrate that the process against him ought not to have been issued. The Magistrate may drop the proceedings if he is satisfied on reconsideration of the complaint that there is no offence for which the accused could be tried, it is his judicial discretion. No specific provision is required for the Magistrate to drop the proceedings or rescind the process. The order issuing the process is an interim order and not a judgment. It can be varied or recalled. The fact that the process has already been issued is no bar to drop the proceedings if the complaint on the very face of it does not disclose any offence against the accused.”
3. After taking notice of this judgment the learned ASJ referred to Nilamani Routray v. Bennet Coleman and Company Ltd., 1998 (8) SCC 594 a case that came up before the Hon'ble Supreme Court on the question of power of trial court in this regard. Learned ASJ, has referred to the following observations of the Supreme court:-
“It has been contended on behalf of the appellant that K.M Mathew Case requires reconsideration for it is settled law that a power of review has to be conferred by law specifically or by necessary implication and the Code of Criminal Procedure does not confer such power. Since we find that there is some substances in the above contention it is desirable that the matter be heard by a Bench of three Judge”.
4. Inspite of the fact that in Nilmani Routary's case no law was laid down as was laid down in K. M. Mathews case as Hon'ble Supreme Court only found substance in the contention made on behalf of the appellant in Nilmani's case and deemed it desirable that the matter be heard by Bench of three Judges, learned ASJ had the audacity to ignore the dictum of Supreme Court in K.M Mathew's case.
5. The learned ASJ did not stop here. He referred to the judgment of Delhi High Court by Single Judge in Mohd. Hasheem Massod v. State, 2000(1) JCC Delhi 24 wherein reliance was placed on Nilmani Routary 's case as if the law laid down in K.M Mathew's case was reviewed by this judgment whereas the fact remained that the Suprente Court found substance in the contention contrary to the principle laid down in K.M Mathew's case and, recommended for referring the matter to a larger Bench and observed that by way of judicial discipline he is bound to follow the judgment of his own High Court. It is highly preposterous to imagine that the contention raised before the Supreme Court in Nilamani's case which was referred to a larger Bench amounted to laying down a new law or reviewing the law laid down in, K.M Mathews’ case. It is well settled principle and should be known to' one and all that any law laid down by Hon'ble Supreme Court is, unless reversed or reviewed, binding on all the Courts in India including the High Courts. Mere reference by a Judge for reviewing the existing law to a larger Bench does not and cannot take away the binding effect of the earlier decision of the Supreme Court.
6. It is not that the learned ASJ did not know or was not conscious of this principle. He did refer to Article 141 of the Constitution of India providing that the law declared by Supreme Court shall be binding on all courts within the territory of India and learned ASJ even observed that a law laid down by Supreme Court cannot be assailed on the ground that certain aspects were not considered by or that the judgment-suffers from any infirmity by not giving proper reasons or over ruling earlier decision. Thus it is not the case where learned ASJ was brewed With confusion.
7. Learned ASJ consciously ignored the verdict of the Supreme Court by introducing altogether a new unknown to the law and wholly misconceived notion of judicial discipline that he cannot ignore or deviate from the judgment of his own High Court. If this is the understanding of judicial discipline of the learned ASJ it is very poor understanding. Learned ASJ says “ Once our own High Court takes a decision it cannot be deviated or ignored or not fol lowed if it is applicable to the facts and circumstances of a particular case.”
8. Even if there was decision of this court in this regard, the learned ASJ was bound by the decision of Hon'ble Supreme Court which was crystal clear and in definite terms and admitted no contrary interpretation. The law laid down by Hon'ble Supreme Court in K.M Mathew's case is crystal clear and easily understandable. ft appears that in the perception of learned ASJ the order of the High Court had abrogated not only the Article 141 of the Constitution itself but overruled the judgment of the Supreme Court also. Since no law was laid down in Nilamani Routray 's case and the only law laid down is in K.M Mathews case which has neither been reviewed nor altered, learned ASJ was required and expected to act upon the dictum returned in K.M Mathews case only which was for all purposes binding on all the courts of the country including the High Courts.
9. But from the tenor of the order I think the learned ASJ was fully conscious of not only the law of the land but also the Constitutional provisions that the law laid down by the Supreme Court is binding on all the Courts below it including the High Courts and if any High Court has laid down a law contrary to that of the Supreme Court, law laid down by the Supreme Court alone is binding, still he sidetracked it by clutching a flimsy straw that judicial discipline requires him to follow the judgment of his own High Court. Such an approach is not only an act of judicial indiscipline but verges on contempt of Court also.
10. Let us see how the facts and circumstances of the case before the learned ASJ were different than the facts in K.M Mathew's case. In the instant case, summons were issued by the Court after recording the pre-sum-moning evidence on a complaint filed under Section 138 of Negotiable Instrument Act. Accused persons moved an application for recalling the summoning order or dropping of the proceedings by pleading that no case is made out against him. Learned ASJ dismissed the application by saying that “the application for recalling of summoning order in this case is as per se not maintainable as the summoning order cannot be recalled, reviewed, altered or varied in any manner.”
11. In K.M Mathews case, complaint under Section 500 read with Section 34 IPC was filed against Mr. Mathew who was Chief Editor of Malyalam Manorma along with other co-accused. Learned Magistrate examined the complaint on oath and took the complaint on file and issued summons to the accused. Accused upon service entered appearance and pleaded not guilty. Before the evidence was recorded Mr. Mathew requested the Magistrate to drop the proceedings against him by contending that complainant has not alleged that the Chief Editor was responsible for selection of the news item and publication thereof nor was there any averment that the Chief Editor had perused the material or edited before its publication or that it was published with his knowledge or consent. After hearing the parties the Magistrate accepted the plea and dropped the proceedings against him.
12. Complainant took up the matter to the High Court. High Court allowed the revision and set aside the order solely on the procedural requirements of the trial of a summons case by holding that in any private complaint triable as a summons case the Magistrate after taking cognizance of the offence and issuing process-has no jurisdiction to drop the proceedings against the accused. This view of the High Court did not find favour with the Supreme Court. Supreme Court held that the order issuing the process is an interim order and not a judgment and therefore the order issuing the process can be varied and recalled and the fact that the process has already been issued is no bar to drop the proceedings if the complaint on the very face of it does not disclose any offence against the accused.
13. It is beyond even wildest imagination and comprehension that the facts and the question of law involved m the instant case are in any way different than those of K. M. Mathews case. Only private complaints are required to be filed for the offence punishable under Section 138 of Negotiable Instrument Act. Pre-summoning evidence is recorded in both the cases. What way the procedure and proceedings are different in a complaint case under Section 138 of Negotiable Instrument Act and the case under Section 500 IPC is not understandable and difficult to accept. Thus the reasoning of the learned ASJ on this premise is wholly untenable and pretextual for dismissing the applications of the petitioners.
14. Without tarrying further on the subject, I find that the view taken by the learned ASJ was wholly erroneous, unjust, contrary to the law laid down by the Supreme Court and almost verged on contempt of the Supreme Court. In the result, the petitions are allowed, impugned order is set aside with the direction to the learned ASJ to decide the applications of the petitioners on merits as the law laid down in K. M. Mathew's case alone is holding the field tilldate.
15. Copy of this order be sent to all the Judicial Officers for their guidance lest any other Metropolitan Magistrate or Additional Sessions Judge ventures to tread the path the concerned learned ASJ has chosen to tread.
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