Evidence by way of Affidavit can be filed on behalf of complainant witnesses in 138 NI Act cases reitereated
In a significant ruling, the Supreme Court has reiterated that evidence of witnesses on behalf of the complainant in cheque bounce cases may be presented by affidavit. The above decision, issued by a bench comprising Justice Abhay S. Oka and Justice Pankaj Mithal, aims to streamline procedures under Section 138 of the Negotiable Instruments Act, 1881 (N.I. Act), providing much-needed clarity on the applicability of Section 202 of the Criminal Procedure Code (CrPC).
Case Background
The case came before the Supreme Court following a High Court decision that quashed a Magistrate’s order issuing summons due to non-compliance with Section 202(1) CrPC. Section 202 mandates that a Magistrate must conduct an inquiry if the accused resides outside the court’s jurisdiction. The High Court, however, did not instruct the Magistrate to perform this inquiry, leaving a gap in the procedural handling of the complaint. Dissatisfied, the complainant appealed to the Supreme Court.
Supreme Court’s Ruling and Rationale
The two-judge bench referenced an important guideline laid down by a Constitution Bench in In Re: Expeditious Trial of Cases Under Section 138 of N.I. Act, 1881, which promotes allowing affidavits for witness evidence to reduce procedural delays in cheque bounce cases. By allowing affidavits, the Court simplifies the process, facilitating faster handling of cases that would otherwise risk backlog and delayed justice.
The bench modified the High Court’s judgment, directing the Trial Court to recommence proceedings from the Section 202 stage, ensuring that the complainant’s witness evidence could be submitted by way of affidavit. The Magistrate is now required to follow the Constitution Bench’s directions on expedited trials.
Implications
This judgment sets a critical precedent, enabling complainants in cheque bounce cases to present witness testimony through affidavit, thus enhancing procedural efficiency. The ruling aligns with the Supreme Court’s broader goal of ensuring speedy justice in cases under the N.I. Act, preventing unnecessary delays due to procedural bottlenecks.
The above judgment is set to optimize legal processes, especially for financial disputes, where timely resolution is essential. By allowing evidence on affidavit, the Court takes a step toward streamlining litigation in cheque bounce cases, reflecting its focus on both justice and efficiency.
