Section 138 NI Act -Accused Can Seek Conversion Of Summary Trial To Summons Trial Only After Disclosing Defence : Delhi High Court

In a trial for the offence of cheque dishonour under Section 138 of the Negotiable Instruments Act, the accused can seek the conversion of summary trial as summons trial only after disclosing his plea of defence, observed the Delhi High Court.

"...only after disclosing his plea of defence, he can make an application that the case should not be tried summarily but as a summons trial case", the High Court observed in the case Sumit Bhasin v State of NCT of Delhi.

As per Section 143 of the Negotiable Instruments Act, the offence has to be tried summarily. However, as per Section 145(2), the accused or the prosecution can seek that the case be tried as a summons case.

While dismissing a petition filed under Section 482 of the Code of Criminal Procedure to quash a case under Section 138 NI Act, a single bench of Justice Rajnish Bhatnagar observed :

"It is seen in many cases that the petitioners with malafide intentions and to prolong the litigation raise false and frivolous pleas and in some cases, the petitioners do have genuine defence, but instead of following due procedure of law, as provided under the N.I. Act and the Cr.P.C, and further, by misreading of the provisions, such parties consider that the only option available to them is to approach the High Court and on this, the High Court is made to step into the shoes of the Metropolitan Magistrate and examine their defence first and exonerate them. The High Court cannot usurp the powers of the Metropolitan Magistrate and entertain a plea of an accused, as to why he should not be tried under Section 138 of the N.I. Act. This plea, as to why he should not be tried under Section 138 of the N.I. Act is to be raised by the accused before the Court of the Metropolitan Magistrate under Section 251 of the Cr.P.C. & under Section 263(g) of the Cr.P.C.

Along with this plea, he can file necessary documents and also make an application, if he is so advised, under Section 145(2) of the N.I. Act to recall the complainant to cross examine him on his plea of defense. However, only after disclosing his plea of defence, he can make an application that the case should not be tried summarily but as a summons trial case".

The Court observed that the offences under Section 138 NI Act is technical in nature and defences, which an accused can take, are inbuilt; for instance, the cheque was given without consideration, the accused was not a Director at that time, accused was a sleeping partner or a sleeping Director, cheque was given as a security etc. The onus of proving these defences is on the accused alone, in view of Section 106 of the Indian Evidence Act, 1872.

The Court further observed :

"Since the mandate of the legislature is the trial of such cases in a summary manner, the evidence already given by the complainant by way of affidavit is sufficient proof of the offence and this evidence is not required to be given again in terms of section 145(1) of the N.I. Act and has to be read during the trial. The witnesses i.e. the complainant or other witnesses can be recalled only when the accused makes such an application and this application must disclose the reason why the accused wants to recall the witnesses and on what point the witnesses are to be cross examined".

"If an accused has a defense against dishonor of the cheque in question, it is he alone who knows the defense and responsibility of spelling out this defense to the Court and then proving this defense is on the accused. Once the complainant has brought forward his case by giving his affidavit about the issuance of cheque, dishonor of cheque, issuance of demand notice etc., he can be cross-examined only if the accused makes an application to the Court as to, on what point he wants to cross examine the witness (es) and then only the Court shall recall the witness by recording reasons thereto".

Explaining the procedure under Sections 143 and 145 of NI Act, the Court said :

"Sections 143 and 145 of the N.I. Act were enacted by the Parliament with the aim of expediting trial in such cases. The provisions of summary trial enable the respondent to lead defense evidence by way of affidavits and documents. Thus, an accused who considers that he has a tenable defense and the case against him was not maintainable, he can enter his plea on the very first day of his appearance and file an affidavit in his defense evidence and if he is so advised, he can also file an application for recalling any of the witnesses for cross examination on the defense taken by him".

Sections 142 to 147 lay down a special code

The provisions of Sections 142 to 147 lay down a Special Code for the trial of offences under the Chapter XVII of the N.I. Act, the Court observed.

The Court further elaborated on the procedure as follows :

In view of the procedure prescribed under the Cr.P.C, if the accused appears after service of summons, the Metropolitan Magistrate shall ask him to furnish bail bond to ensure his appearance during trial and ask him to take notice under Section 251 Cr.PC and enter his plea of defence and fix the case for defence evidence, unless an application is made under Section 145(2) of N.I. Act for recalling a witness for cross- examination on by an accused of defence.

If there is an application u/s 145(2) of N.I. Act for recalling a witness of complainant, the court shall decide the same, otherwise, it shall proceed to take defence evidence on record and allow cross examination of defence witnesses by complainant.

Once the summoning orders in all these cases have been issued, it is now the obligation of the accused to take notice under Section 251 of Cr.P.C., if not already taken, and enter his/her plea of defence before the concerned Metropolitan Magistrate's Court and make an application, if they want to recall any witness. If they intend to prove their defence without recalling any complainant witness or any other witnesses, they should do so before the Court of Metropolitan Magistrate.

The Court dismissed the 482 petition and directed the petitioner to raise the defence before the trial court as per the procedure under the NI Act.

Also Read : Pre And Post-Summons Online Mediation, Summons Via SMS/WhatsApp, Disclosure Of Defence Before Trial [Read Amici Reports On Fast Disposal Of Cheque Cases]

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