S 138 NI Act: Treat Service Of Summons In One Complaint As Deemed Service In All Complaints Arising Out Of Same Transaction – Bombay High Court Issues Guidelines

1.Magistrates trying offences under the NI Act convert a complaint under section 138 of the NI Act from summary trial to summons trial only after recording cogent and sufficient reasons.

2.If the accused in a section 138 case resides beyond the territorial jurisdiction of the magistrate, an inquiry must be conducted before proceeding against the accused as prescribed under section 202 of Cr.P.C.

3.During the course of the inquiry under section 202 of the CrPC, evidence of witness statements should be permitted on affidavit.

4.In suitable cases, the magistrate may restrict the inquiry to examination of documents without insisting for examination of witnesses for satisfaction as to the sufficiency of grounds for proceeding under the said provision.

5.Trial Court shall treat service of summons in one complaint under section 138 of the N.I. Act forming part of a transaction, as deemed service in respect of all complaints filed before the same Court relating to the dishonor of cheques issued as a part of the same transaction.

6.Even as trial court doesn't have powers to review or recall an order of issuance of summons, the Magistrate can revisit the order under section 322 of Cr.P.C if the cour lacks jurisdiction to entertain the complaint.

7.Section 258 of Cr.P.C. has no applicability to complaints under section 138 of the N.I.Act. The words "as far as may be" in section 143 are used only in respect of the applicability of sections 262 to 265 of the Code and the summary procedure to be followed for trials under the said Code.

8.The appellate courts before which appeals against the judgments in complaint under section 138 of the N.I. Act are pending are directed to make an effort to settle the dispute through mediation. These practice directions shall come into force with immediate effect.

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