Refusal To Record Statement Of Bank's Authorised Representative In Cheque Dishonour Cases Is Liable To Be Set Aside: J&K High Court

In a ruling aimed at streamlining cheque bounce proceedings, Jammu & Kashmir Highcourt has set aside an order of the Trial Magistrate, Srinagar, which had refused to record the statement of an authorized bank representative in a complaint filed under Section 138 of the Negotiable Instruments Act.A bench of Justice Sanjay Dhar held that the approach adopted by the trial court was not in accordance with law, and emphasized that any authorized official of the bank who has access to the relevant records can validly depose, even in place of the Branch Manager.The manager's authorized representative had appeared before the Trial Court to depose. However, the Trial Magistrate refused to record his statement, insisting that a separate motion must be filed and the accused given an opportunity to object.The court observed that the Trial Magistrate had taken an overly technical and legally flawed approach. It noted that the bank witness was required to prove account records, not to testify on facts based on personal knowledge.The court said that for proving the dishonour of cheque due to insufficiency of funds, it is sufficient that any responsible officer of the bank who maintains or has access to such records in the ordinary course of business appears.The High Court therefore set aside the impugned order and directed the Trial Magistrate to record the statement of the Bank Manager or any authorized representative who has access to the account records.The petition was thus disposed of with directions to the Trial Magistrate to proceed accordingly, and a copy of the order was directed to be forwarded for necessary compliance.The petitioner had filed a complaint under Section 138 NI Act, alleging that a cheque issued by the respondent was dishonoured due to insufficient funds. The Branch Manager of the concerned bank was listed as a witness. However, due to the non-availability of the counsel for the accused, the manager's statement could not be recorded earlier but later when the representative of the bank manager came before the magistrate court, it refused to record the statement saying that objection from the opposite counsel are required to be taken on record.APPEARANCE Shahid Zammer, Advocate For PetitionerCase-Title: Iftikhar Ashraf Trumboo vs Furqaan Ah. Rather Citation: 2025 LiveLaw (JKL) 217Click Here To Read/Download Order

Refusal To Record Statement Of Bank's Authorised Representative In Cheque Dishonour Cases Is Liable To Be Set Aside: J&K High Court

Aleem Syeed

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