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Smart Summary

Factual and Procedural Background

The petitioners jointly issued a cheque for Rs. 60,000/- on 21-01-1990 in favor of the Managing Partner of Sri Satyanarayana Finance Corporation, Hospet. Upon presentation, the cheque was dishonoured. Following the dishonour, the payee issued a notice to the petitioners and subsequently filed a complaint on 20-02-1990 before the Sub-Inspector of Police at Hospet Town Police Station. Based on this complaint, Crime No. 62/1990 was registered against the petitioners under Section 138 of the Negotiable Instruments Act, 1881. After investigation, a charge-sheet was filed against the petitioners in the Court of the J.M.F.C Hospet. The learned Magistrate took cognizance of the offence and ordered registration of a criminal case, issuing summons to the petitioners. The petitioners challenged this order by way of the present Criminal Petition.

Legal Issues Presented

  1. Whether the learned Magistrate had jurisdiction to take cognizance of the offence under Section 138 of the Negotiable Instruments Act based on a police charge-sheet, despite the provisions of Section 142 of the Act requiring cognizance only upon a complaint made by the payee or holder in due course.

Arguments of the Parties

Petitioners' Arguments

  • The learned Magistrate lacked jurisdiction to entertain and act upon the charge-sheet filed by the Police because Section 142 of the Negotiable Instruments Act mandates that cognizance of an offence under Section 138 can only be taken upon a written complaint made by the payee or holder in due course.

Respondent's Arguments

  • The learned High Court Government Pleader contended that Sections 4 and 5 of the Code of Criminal Procedure, 1973, empower the Police to entertain the complaint filed in respect of an offence under Section 138 of the Negotiable Instruments Act.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Court analyzed the language of Section 142 of the Negotiable Instruments Act, which explicitly states that no Court shall take cognizance of offences under Section 138 except upon a written complaint made by the payee or holder in due course. This statutory mandate excludes the Police from initiating proceedings based solely on a complaint filed with them. The Court rejected the argument that Sections 4 and 5 of the Code of Criminal Procedure empower the Police to entertain such complaints, holding that these provisions do not override the specific requirement under Section 142 of the Act. Consequently, the Court found that the Magistrate had no jurisdiction to act on the police charge-sheet and that the proceedings initiated were without legal basis.

Holding and Implications

The petition is allowed and the entire proceedings in C.C No. 1001/1990 on the file of the Additional J.M.F.C Hospet are quashed.

This decision directly affects the parties by terminating the criminal proceedings initiated on the police charge-sheet. No new precedent beyond the direct application of the statutory provision in Section 142 of the Negotiable Instruments Act was established.

    H. Mohan v. State Of Karnataka

    Ramachandriah, J.:—

    Although this Criminal Petition is listed for admission to-day, it is disposed of on merits by consent of the learned Counsel for the petitioner and the learned High Court Government Pleader and after hearing both of them on merits.

    2. The facts which have given rise to this Petition are that the petitioners jointly issued a cheque in favour of the Managing Partner of Sri Satyanarayana Finance Corporation, Hospet for a sum of Rs. 60,000/- on 21-1-1990 on the State Bank of Mysore, Bazaar branch, Hospet. When presented by the payee, the said cheque came to be dishonoured. Thereafter, payee issued notice to the petitioners. Sometime after the issue of notice to the petitioners, the payee filed a complaint on 20-2-1990 before the Sub-Inspector of Police, Hospet Town Police Station for taking necessary action against the petitioner. On the basis of that complaint, a case in Crime No. 62/1990 was registered against the petitioners for an offence under Section 138 of the Negotiable Instruments Act, 1881, as amended by Act No. 66/1988 (for short ‘the Act’). After completing the investigation, the Sub-Inspector of Hospet Town Police Station filed a charge-sheet against the petitioners in the Court of the J.M.F.C Hospet, for an offence under Section 138 of the Act.

    3. Acting on that charge-sheet, the learned Magistrate took cognizance of the offence under Section 138 of the Act and ordered registration of a Criminal case against the petitioners arrayed as accused in the charge-sheet and directed issue of summons to them on 16-4-1990 calling upon them to appear before him on 12-10-1990. It is the said order of the learned Magistrate that is challenged in this Criminal Petition.

    4. The main contention of the petitioners is that the learned Magistrate had no jurisdiction to entertain and act upon the charge-sheet filed by the Police in view of the provisions of Section 142 of the Act. It reads thus:

    “Cognizance of Offences - Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), -

    (a) No Court shall take cognizance of any offence punishable under Section 138 except upon a complaint, in writing, made by the payee, or, as the case may be, the holder in due course of the cheque.”

    It is clear from the language employed in Section 142 of the Act that no Court shall take cognizance of any offence punishable under Section 138 except upon a written complaint made by the payee. It means that the payee has to file a private complaint under Section 200 Cr. P.C before the competent Magistrate and the Police are not empowered to act upon a private complaint filed for an offence under Section 138 of the Act. I do not find any force in the argument of the learned High Court Government Pleader that Sections 4 and 5 Cr. P.C empower the Police to entertain the complaint filed in respect of an offence under Section 138 of the Act as the said provisions are not attracted in view of the above extracted provisions of Section 142 of the Act.

    5. In the result, the Petition is allowed and the entire proceedings in C.C No. 1001/1990 on the file of the Additional J.M.F.C Hospet, are quashed.

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    H. Mohan v. State Of Karnataka
    (Nov 6, 1990)