Sc Judgement on Jurisdiction Under 138 of n.i Act

8/20/2019 Sc Judgement on Jurisdiction Under 138 of n.i Act

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REPORTABLE

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO. 2287 OF 2009

Dashrath Rupsingh Rathod !!App"##ant

$"rsus

Stat" o% Maharashtra & Anr! !!R"spond"nts

' I T H

CRIMINAL APPEAL NO! 1()* OF +,1-.Arising out o% S!L!P!/Cr#!0No!+, o% +,,)23

CRIMINAL APPEAL NO! 1()- OF +,1-.Arising out o% S!L!P!/Cr#!0No!+11+ o% +,,)23

CRIMINAL APPEAL NO! 1()( OF +,1-.Arising out o% S!L!P!/Cr#!0No!+11 o% +,,)23

CRIMINAL APPEAL NOS! 1()4514,, OF +,1-.Arising out o% S!L!P!/Cr#!0Nos!1*,651*1+ o% +,,)23

CRIMINAL APPEAL NO!14,1 OF +,1-.Arising out o% S!L!P!/Cr#!0No!* 4+ o% +,1+23

CRIMINAL APPEAL NO! 14,+ OF +,1-.Arising out o% S!L!P!/Cr#!0No!*)-* o% +,1+23

CRIMINAL APPEAL NO!14,* OF +,1-.Arising out o% S!L!P!/Cr#!0No!*)-- o% +,1+23 AND

CRIMINAL APPEAL NO! 14,- OF +,1-

.Arising out o% S!L!P!/Cr#!0No!() o% +,1*2!


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J U D G M E N T

VIKRAMAJIT SEN, J.

1! L"a7" grant"d in Sp"8ia# L"a7" P"titions! Th"s"

App"a#s rais" a #"ga# nodus o% su9stantia# pu9#i8 i:portan8"

p"rtaining to Court;s t"rritoria# 1661 /%or short> ?th" NI A8t;0!

This is a:p#@ adu:9rat"d 9@ th" Ord"rs dat"d

*!11!+,,) in I!A!No!1 in CC 1() - +,,) o% th" thr""5

Judg" B"n8h pr"sid"d o7"r 9@ th" th"n Hon;9#" th" Chi"%

Justi8" o% India> Hon;9#" Mr! Justi8" $!S! Sirpur ar and

Hon;9#" Mr! Justi8" P! Sathasi7a: hi8h SLP is a#so

8on8"rn"d ith th" int"rpr"tation o% S"8tion 1*6 o% th"

NI A8t> and h"r"in th" B"n8h a%t"r issuing noti8" on th"

p"tition dir"8t"d that it 9" post"d 9"%or" th" thr""5Judg"

B"n8h!

PRECEDENTS

+! Th" "ar#i"st and th" :ost o%t"n uot"d d"8ision


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o% this Court r"#"7ant to th" pr"s"nt 8onundru: is !

Bhas a!a" 7! San aran $aidh@an Ba#an /1)))0 SCC (1,

h"r"in a t o5Judg" B"n8h has> int"r a#ia> int"rpr"t"d

S"8tion 1*6 o% th" NI A8t to indi8at" that> Gth" o%%"n8" und"r

S"8tion 1*6 8an 9" 8o:p#"t"d on#@ ith th" 8on8at"nation o%

a nu:9"r o% a8ts! Fo##o ing ar" th" a8ts hi8h ar"

8o:pon"nts o% th" said o%%"n8" /10 Dra ing o% th" 8h" u">

/+0 Pr"s"ntation o% th" 8h" u" to th" 9an > /*0 R"turning th"

8h" u" unpaid 9@ th" dra "" 9an > /-0 i7ing noti8" in

riting to th" dra "r o% th" 8h" u" d":anding pa@:"nt o%

th" 8h" u" a:ount> /(0 Fai#ur" o% th" dra "r to :a "

pa@:"nt ithin 1( da@s o% th" r"8"ipt o% th" noti8"! Th"pro7isions o% S"8tions 1 to 1 ) o% th" Cod" o% Cri:ina#

Pro8"dur"> 1) * /%or short> ?CrPC;0 ha7" a#so 9""n d"a#t ith

in d"tai#! Furth"r:or"> Bhaskaran in t"r:s dra s a

distin8tion 9"t ""n ?gi7ing o% noti8"; and ?r"8"i7ing o%

noti8";! This is %or th" r"ason that 8#aus" /90 o% pro7iso to

S"8tion 1*6 o% th" NI A8t postu#at"s a d":and 9"ing :ad"

9@ th" pa@"" or th" ho#d"r in du" 8ours" o% th" dishonour"d


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8h" u" 9@ gi7ing a noti8" in riting to th" dra "r th"r"o%!

'hi#" doing so> th" u"stion o% th" r"8"ipt o% th" noti8" has

a#so 9""n 8ogitat"d upon!

*! Th" issuan8" and th" r"8"ipt o% th" noti8" is

signi%i8ant 9"8aus" in a su9s" u"nt #a!$a" E#"8troni8s P7t! Ltd! 7!

Nationa# Panasoni8 India P7t! Ltd! /+,,)0 1 SCC +,

":phasis has 9""n #aid on th" r"8"ipt o% th" noti8"> inter

alia > ho#ding that th" 8aus" o% a8tion 8annot aris" 9@ an@ a8t

o% o:ission or 8o::ission on th" part o% th" ?a88us"d;>

hi8h on a ho#isti8 r"ading has to 9" r"ad as ?8o:p#ainant;!

It app"ars that Harman transa8t"d 9usin"ss out o%Chandigarh on#@> h"r" th" Co:p#ainant a#so :aintain"d an

o%%i8"> a#though its H"ad O%%i8" as in D"#hi! Harman issu"d

th" 8h" u" to th" Co:p#ainant at Chandigarh3 Harman had

its 9an a88ount in Chandigarh a#on"! It is un8#"ar h"r" th"

Co:p#ainant pr"s"nt"d th" 8h" u" %or "n8ash:"nt 9ut it

issu"d th" S"8tion 1*6 noti8" %ro: D"#hi! In thos"

8ir8u:stan8"s> this Court had o9s"r7"d that th" on#@


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u"stion %or 8onsid"ration as G h"th"r s"nding o% noti8"

%ro: D"#hi its"#% ou#d gi7" ris" to a 8aus" o% a8tion %or

ta ing 8ogniKan8" und"r th" NI A8t! It th"n "nt on to

opin" that th" pro7iso to this S"8tion Gi:pos"s 8"rtain

%urth"r 8onditions hi8h ar" r" uir"d to 9" %u#%i##"d 9"%or"

8ogniKan8" o% th" o%%"n8" 8an 9" ta "n! '" r"sp"8t%u##@

agr"" ith this stat":"nt o% #a and und"rs8or" that in

8ri:ina#


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A88us"d or ith an@ %a8"t o% th" transa8tion 9"t ""n th"

parti"s> #"a7" asid" th" p#a8" h"r" th" dishonour o% th"

8h" u" has ta "n p#a8"! This is a#so th" position as r"gards

th" pr"s"ntation o% th" 8h" u"> dishonour o% hi8h is th"n

p#"ad"d as th" t"rritoria# p#at%or: o% th" Co:p#aint und"r

S"8tion 1*6 o% th" NI A8t! Harman, in %a8t> du#@ h""ds th"

a9surd and str"ss%u# situation> %ast 9"8o:ing 8o::on5p#a8"

h"r" s"7"ra# 8h" u"s sign"d 9@ th" sa:" dra "r ar"

pr"s"nt"d %or "n8ash:"nt and r" uisit" noti8"s o% d":and

ar" a#so d"spat8h"d %ro: di%%"r"nt p#a8"s! It app"ars to us

that pr"8is"#@ 9"8aus" o% its

:is":p#o@:"nt so %ar as 8hoi8" o% p#a8" o% suing is

8on8"rn"d! Th"s" ar" th" 8ir8u:stan8"s hi8h ha7"


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prop"##"d us to :inut"#@ 8onsid"r th" d"8isions r"nd"r"d 9@

t o5Judg" B"n8h"s o% this Court!

-! It is not" orth@ that th" int"rpr"tation to 9"

i:part"d to S"8tion 1*6 o% th" NI A8t a#so aros" 9"%or" a

thr""5Judg" B"n8h in Shri Isha! A%%&' St""#s Ltd! 7!

Ja@as a#s N"8o Ltd! /+,,10 * SCC 4,) 8#os" on th" h""#s o%

Bhaskaran ! So %ar as th" %a8tua# :atri is 8on8"rn"d> th"

dishonour"d 8h" u" had 9""n pr"s"nt"d %or "n8ash:"nt 9@

th" Co:p#ainant ho#d"r in his 9an ithin th" statutor@

p"riod o% si :onths 9ut 9@ th" ti:" it r"a8h"d th" dra "r;s

9an th" a%or":"ntion"d p"riod o% #i:itation had " pir"d!

Th" u"stion 9"%or" th" Court as h"th"r th" 9an ithinth" postu#ation o% S"8tion 1*6 r"ad ith S"8tions * and + o%

th" NI A8t as th" dra "" 9an or th" 8o##"8ting 9an and

this Court h"#d that it as th" %or:"r! It as o9s"r7"d that

Gnon5pr"s"ntation o% th" 8h" u" to th" dra "" 9an ithin

th" p"riod sp"8i%i"d in th" S"8tion ou#d a9so#7" th" p"rson

issuing th" 8h" u" o% his 8ri:ina# #ia9i#it@ und"r S"8tion 1*6

o% th" NI A8t> ho oth"r is" :a@ 9" #ia9#" to pa@ th" 8h" u"


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a:ount to th" pa@"" in a 8i7i# a8tion initiat"d und"r th" #a !

A 8o:9in"d r"ading o% S"8tions *> + and 1*6 o% th" NI A8t

ou#d #"a7" no dou9t in our :ind that th" #a :andat"s th"

8h" u" to 9" pr"s"nt"d at th" 9an on hi8h it is dra n i%

th" dra "r is to 9" h"#d 8ri:ina##@ #ia9#"! C#"ar#@> and in

our 8onsid"r"d opinion right#@> th" S"8tion had 9""n

r"nd"r"d a88us"d58"ntri8;! This d"8ision 8#ari%i"s that th"

p#a8" h"r" a 8o:p#ainant :a@ pr"s"nt th" 8h" u" %or

"n8ash:"nt ou#d not 8on%"r or 8r"at" t"rritoria#

and in this r"sp"8t runs 8ount"r to th" "ss"n8"

o% Bhaskaran hi8h parado i8a##@> in our opinion> :a "s

a8tions o% th" Co:p#ainant an int"gra# na@ nu8#"ar8onstitu"nt o% th" 8ri:" its"#%!

(! Th" prin8ip#" o% pr"8"d"n8" shou#d pro:pt#@ and

pr"8is"#@ 9" paraphras"d! A 8o5ordinat" B"n8h is 9ound to

%o##o th" pr"7ious#@ pu9#ish"d 7i" 3 it is 8"rtain#@

8o:p"t"nt to add to th" pr"8"d"nt to :a " it #ogi8a##@ and

dia#"8ti8a##@ 8o:p"##ing! Ho "7"r> on8" a d"8ision o% a

#arg"r B"n8h has 9""n d"#i7"r"d it is that d"8ision hi8h


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:andatori#@ has to 9" app#i"d3 h"r"as a Co5ordinat" B"n8h>

in th" "7"nt that it %inds its"#% una9#" to agr"" ith an

" isting ratio> is 8o:p"t"nt to r"8o::"nd th" pr"8"d"nt %or

r"8onsid"ration 9@ r"%"rring th" 8as" to th" Chi"% Justi8" %or

8onstitution o% a #arg"r B"n8h! Indu9ita9#@> th"r" ar" a

nu:9"r o% d"8isions 9@ t o5Judg" B"n8h"s on S"8tion 1*6 o%

th" NI A8t> th" :a

it is i:p"rati7" %or th" Court to di#ig"nt#@ disti## and th"n

app#@ th" ratio o% a d"8ision3 and th" 7i" o% a #arg"r B"n8h

ought not to 9" disr"gard"d! Inas:u8h as th" thr""5Judg"

B"n8h in Ishar Alloy has 8at"gori8a##@ stat"d that %or8ri:ina# #ia9i#it@ to 9" attra8t"d> th" su9 Bhaskaran has 9""n signi%i8ant#@

hitt#"d do n i% not o7"rru#"d! Bhaskaran has a#so 9""n

drasti8a##@ di#ut"d 9@ Harman inas:u8h as it has gi7"n

pri:a8@ to th" s"r7i8" o% a noti8" on th" A88us"d inst"ad o%

its :"r" issuan8" 9@ th" Co:p#ainant!


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4! In P!($ Cha") $i anoth"r t o5Judg" B"n8h h"#d that upon a

noti8" und"r S"8tion 1*6 o% th" NI A8t 9"ing issu"d> a

su9s" u"nt pr"s"ntation o% a 8h" u" and its dishonour

ou#d not 8r"at" anoth"r ?8aus" o% a8tion; hi8h 8ou#d s"t

th" S"8tion 1*6 :a8hin"r@ in :otion! In that 7i" > i% th"

p"riod o% #i:itation had run out> a %r"sh noti8" o% d":and

as 9"r"%t o% an@ #"ga# "%%i8a8@! SIL I:port> USA 7! E i:

Aid"s Si# E port"rs /1)))0 - SCC (4 as app#i"d in hi8h

th" d"t"r:ination as that sin8" th" r" uisit" noti8" had

9""n d"spat8h"d 9@ FA= on +4!4!1))4 th" #i:itation %or %i#ing

th" S"8tion 1*6 Co:p#aint " pir"d on +4! !1))4! 'hat isint"r"sting is th" o9s"r7ation that G%our 8onstitu"nts o%

S"8tion 1*6 ar" r" uir"d to 9" pro7"d to su88"ss%u##@

pros"8ut" th" dra "r o% an o%%"n8" und"r S"8tion 1*6 o% th"

NI A8t /":phasis supp#i"d0! It is a#so not" orth@ that

inst"ad o% th" %i7" Bhaskaran 8on8o:itants> on#@ %our ha7"

9""n sp"#t out in th" su9s" u"nt


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pros"8ution hi8h> in our 8onsid"r"d opinion> is th" 8orr"8t

int"rpr"tation o% th" #a ! In oth"r ords> th" %our or %i7"

8on8o:itants o% th" S"8tion ha7" to 9" in " ist"n8" %or th"

initiation as "## as th" su88"ss%u# pros"8ution o% th"

o%%"n8"> hi8h o%%"n8" ho "7"r 8o:"s into " ist"n8" as

soon as su9 Courts in that 8it@ poss"ss"d t"rritoria#


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th" a88us"d58o:pan@ hi8h had its h"ad uart"rs in

Erna u#a:> "ra#a h"r" signi%i8ant#@ th" a88us"d5

8o:pan@;s 9an on ho: th" dishonour"d 8h" u"s had

9""n dra n as #o8at"d! S"7"ra# 9ut not Bhaskaran ! Th" third ingr"di"nt in Bhaskaran,

i!" . th" r"turning o% th" 8h" u" unpaid 9@ th" dra "" 9an >

as not r"%#"8t"d upon! Inas:u8h as Mosaraf Hossain

r"%"rs 8opious#@ to th" 8aus" o% a8tion ha7ing aris"n in '"st

B"nga# ithout ad7"rting at a## to Bhaskaran > #"a7" asid"

th" thr""5Judg" B"n8h d"8ision in Ishar Alloy > th" d"8ision

:a@ 9" s""n as per incuriam ! Mor"o7"r> th" 8on8"pt o%

forum non conveniens has no ro#" to p#a@ und"r S"8tion 1*6o% th" NI A8t> and %urth"r:or" that it 8an 8"rtain#@ 9"

8ont"nd"d 9@ th" a88us"d58o:pan@ that it as


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" pr"ss"d 7i" that> G h"r" th" t"rritoria# in th" 8ont" t o% S"8tions 1 to 16, CrPC that

G%or u ahati in %a7our o% 8o:p#ainant5

r"spond"nt! It app"ars that th" App"##ant had "nd"a7our"d


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to 8r"at" a 8as" or rath"r a d"%"n8" 9@ r"porting to his 9an

in u ahati as "## as to th" #o8a# po#i8" station that ?on"

8h" u" /8orr"sponding to th" 8h" u" in u"stion0 as

:issing and h"n8" pa@:"nt shou#d 9" stopp"d!; Th"

R"spond"nt5dra "r as a r"sid"nt o% Distri8t Bhi ani>

Har@ana3 h" pr"s"nt"d th" 8h" u" %or "n8ash:"nt at

Canara Ban > Bhi ani 9ut it as r"turn"d unpaid! Th"

ho#d"r th"n issu"d a #"ga# noti8" hi8h %ai#"d to "#i8it th"

d":and"d su: o% :on"@ 8orr"sponding to th" 8h" u"

7a#u"> and th"r"upon %o##o "d it 9@ th" %i#ing o% a 8ri:ina#

8o:p#aint und"r S"8tions 1*6 and 1-1 o% th" NI A8t at

Bhi ani! Th" Judi8ia# Magistrat"> Bhi ani> 7id" ord"r dat"d(!*!+,11> 8on8#ud"d that th" 8ourt in Bhi ani did not

poss"ss t"rritoria# as a#r"ad@ ana#@s"d> has 8on8#ud"d that th"


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s"8ond Bhaskaran 8on8o:itant> na:"#@> pr"s"ntation o%

8h" u" to th" 9an r"%"rs to th" dra "" 9an and not th"

ho#d"r;s 9an > is not pri:ari#@ r"#"7ant %or th" d"t"r:ination

o% t"rritoria# th"r"%or"> as 9inding on a## s:a##"r B"n8h"s!

'" ing":inat" that it is th" dra "" Ban and not th"

Co:p#ainant;s Ban hi8h is postu#at"d in th" so58a##"d

s"8ond 8onstitu"nt o% S"8tion 1*6 o% th" NI A8t> and it is this

postu#at" that spurs us to ards th" 8on8#usion that " ha7"

arri7"d at in th" pr"s"nt App"a#s! Th"r" is a#so a dis8ussion

o%Harman to r"it"rat" that th" o%%"n8" und"r S"8tion 1*6 is


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8o:p#"t" on#@ h"n th" %i7" %a8tors ar" pr"s"nt! It is our

8onsid"r"d 7i" > hi8h " sha## " pound upon> that th"

o%%"n8" in th" 8ont":p#ation o% S"8tion 1*6 o% th" NI A8t is

th" dishonour o% th" 8h" u" a#on"> and it is th"

8on8at"nation o% th" %i7" 8on8o:itants o% that S"8tion that

"na9#" th" pros"8ution o% th" o%%"n8" in 8ontradistin8tion to

th" 8o:p#"tion 8o::ission o% th" o%%"n8"!

)! '" ha7" a#so painsta ing#@ p"rus"d Es8orts

Li:it"d hi8h as a#so d"8id"d 9@ th" Nishant t o5Judg"

B"n8h! Pr"7ious d"8isions "r" 8onsid"r"d> "7"ntua##@

#"ading to th" 8on8#usion that sin8" th" 8on8"rn"d 8h" u"

had 9""n pr"s"nt"d %or "n8ash:"nt at N" D"#hi> itsM"tropo#itan Magistrat" poss"ss"d t"rritoria# in FIL

Industri"s Ltd! 7! I:ti@aK Ah:"d Bhat pass"d on 1+ th August

+,1*> it as d"8id"d that th" p#a8" %ro: h"r" th" statutor@

noti8" had ":anat"d ou#d not o% its o n ha7" th"

8ons" u"n8" o% 7"sting


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arising at an@ p#a8" h"r" it has a#so a su9ordinat" o%%i8"> at

su8h p#a8"! Sin8" this pro7ision pri:ari#@ ""ps th"

D"%"ndant in p"rsp"8ti7"> th" 8orporation spo "n o% in th"

E p#anation> o97ious#@ r"%"rs to th" D"%"ndant! A p#ain

r"ading o% S"8tion +, o% th" CPC argua9#@ a##o s th" P#ainti%%

a :u#titud" o% 8hoi8"s in r"gard to h"r" it :a@ institut" its

#is> suit or a8tion! Corporations and partn"rship %ir:s> and

"7"n so#" propri"torship 8on8"rns> 8ou#d "## 9" transa8ting

9usin"ss si:u#tan"ous#@ in s"7"ra# 8iti"s! I% su95s"8tions /a0

and /90 o% S"8tion +, ar" to 9" int"rpr"t"d dis as th" us" o% th" ord ?or; app"ars to p"r:it

th" P#ainti%% to %i#" th" suit at an@ o% th" p#a8"s h"r" th"8aus" o% a8tion :a@ ha7" aris"n r"gard#"ss o% h"th"r th"

D"%"ndant has "7"n a su9ordinat" o%%i8" at that p#a8"!

Ho "7"r> i% th" D"%"ndants; #o8ation is to %or: th" %u#8ru: o%

and it has an o%%i8" a#so at th" p#a8" h"r" th"

8aus" o% a8tion has o88urr"d> it has 9""n h"#d that th"

P#ainti%% is pr"8#ud"d %ro: instituting th" suit an@ h"r" "#s"!

O97ious#@> this is a#so 9"8aus" "7"r@ oth"r p#a8" ou#d


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8onstitut" a forum non conveniens ! This Court has

har:onis"d th" 7arious hu"s o% th" 8onundru: o% th" p#a8"

o% suing in s"7"ra# 8as"s and has gon" to th" " t"nt o%

#a@ing do n that it shou#d 9" 8ourts "nd"a7our to #o8at" th"

p#a8" h"r" th" 8aus" o% a8tion has su9stantia##@ aris"n and

r" hi8h in8#ud"s i:porting th" 8i7i# #a 8on8"pt

o% G8aus" o% a8tion to 8ri:ina# #a hi8h "ss"ntia##@


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"n7isag"s th" p#a8" h"r" a 8ri:" has 9""n 8o::itt"d

":po "rs th" Court at that p#a8" ith


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us"d as a d"7i8" %or harass:"nt> "7"n o% an appar"nt

transgr"ssor o% th" #a ! La ;s "nd"a7our is to 9ring th"

8u#prit to 9oo and to pro7id" su88our %or th" aggri"7"d

part@ 9ut not to harass th" %or:"r through 7" atious

pro8""dings! Th"r"%or"> pr"8ision and " a8titud" ar"

n"8"ssar@ "sp"8ia##@ h"r" th" #o8ation o% a #itigation is

8on8"rn"d!

RELEVANT PROVISIONS

1+! Th" pro7isions hi8h i## ha7" to 9" " a:in"d and

ana#@s"d ar" r"produ8"d %or %a8i#it@ o% r"%"r"n8"

Negotiable Instruments Act, 1 1

“138. Dishonour of cheque for insufficiency, etc., of funds

in the account.- Where any cheque drawn by a person on an ac-

count maintained by him with a banker for payment of any amount

of money to another person from out of that account for the dis-

charge, in whole or in part, of any debt or other liability, is re-

turned by the bank unpaid, either because of the amount of money

standing to the credit of that account is insufficient to honour the

cheque or that it exceeds the amount arranged to be paid from that

account by an agreement made with that bank, such person shall

be deemed to have committed an offence and shall, without preju-


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++

dice to any other provisions of this Act, be punished with impris-

onment for a term which may be extended to two years, or with

fine which may extend to twice the amount of the cheque, or with

both

!rovided that nothing contained in this section shall apply

unless-

"a# the cheque has been presented to the bank within a pe-

riod of six months from the date on which it is drawn or

within the period of its validity, whichever is earlier$

"b# the payee or the holder in due course of the cheque, as

the case may be, makes a demand for the payment of the

said amount of money by giving a notice in writing, to

the drawer of the cheque, within thirty days of the re-

ceipt of information by him from the bank regarding the

return of the cheque as unpaid% and

"c# the drawer of such cheque fails to make the payment of

the said amount of money to the payee or, as the case

may be, to the holder in due course of the cheque,

within fifteen days of the receipt of the said notice$

Explanation. &or the purposes of this section, “debt or

other liability' means a legally enforceable debt or other lia-

bility$

142. Cognizance of offences. -(otwithstanding anything

contained in the )ode of )riminal !rocedure, *+ ". of *+ /#-


23/87Page 23

+*

"a# no court shall take cogni0ance of any offence punishable

under section * 1 except upon a complaint, in writing,

made by the payee or, as the case may be, the holder in

due course of the cheque%

"b# such complaint is made within one month of the date on

which the cause of action arises under clause "c# of the

proviso to section * 1%

!rovided that the cogni0ance of a complaint may be

taken by the )ourt after the prescribed period, if the

complainant satisfies the )ourt that he had sufficient

cause for not making a complaint within such period$

"c# no court inferior to that of a 2etropolitan 2agistrate or a

3udicial 2agistrate of the first class shall try any offence

punishable under section * 1$'

Code of Criminal Procedure, 1 !3

“1!!. "rdinary #lace of inquiry and trial. - 4very offence shall

ordinarily be inquired into and tried by a )ourt within whose local

jurisdiction it was committed$

1!8. Place of inquiry or trial. - "a# When it is uncertain in which

of several local areas an offence was committed, or

$ b# where an offence is committed partly in one local area

and partly in another, or


24/87Page 24

+-

"c# where an offence is a continuing one, and continues to be

committed in more local areas than one, or

"d# where it consists of several acts done in different local

areas,

it may be inquired into or tried by a )ourt having jurisdiction over

any of such local areas$

1! . "ffence tria%le &here act is done or consequence ensues. -

When an act is an offence by reason of anything which has been

done and of a consequence which has ensued, the offence may beinquired into or tried by a )ourt within whose local jurisdiction

such thing has been done or such consequence has ensued$'

PARLIAMENTAR DEBATES

1*! Th" =$IIth %as8i8u#us o% th" N"gotia9#" Instru:"nts

A8t 8ontaining S"8tions 1*6 to 1-+ as introdu8"d into th"

statut" in 1)66! Th" a7o "d int"nd:"nt o% th" a:"nd:"nt

as to "nhan8" th" a88"pta9i#it@ o% 8h" u"s! It as 9as"d

on th" R"port o% th" Co::itt"" on Ban ing La s 9@ Dr!

Ra su9:itt"d in 1) (> hi8h sugg"st"d> inter alia,

p"na#iKing th" issuan8" o% 8h" u" ithout su%%i8i"nt %unds!

Th" Minist"r o% Finan8" had assuag"d appr"h"nsions 9@


25/87Page 25

+(

arguing that sa%"guards %or hon"st p"rsons had 9""n

in8orporat"d in th" pro7isions> 7iK!> /i0 th" 8h" u" shou#d

ha7" 9""n issu"d in dis8harg" o% #ia9i#it@3 /ii0 th" 8h" u"

shou#d 9" pr"s"nt"d ithin its 7a#idit@ p"riod3 /iii0 a Noti8"

had to 9" s"nt 9@ th" Pa@"" d":anding pa@:"nt ithin 1(

da@s o% r"8"i7ing noti8" o% dishonour3 /i70 th" dra "r as

a##o "d to :a " pa@:"nt ithin 1( da@s %ro: th" dat" o%

r"8"ipt o% noti8"3 /70 Co:p#aint as to 9" :ad" ithin on"

:onth o% th" 8aus" o% a8tion arising3 /7i0 no Court in%"rior to

that o% MM or JMFC as to tr@ th" o%%"n8"! Th" Finan8"

Minist"r had a#so stat"d that th" Court had dis8r"tion

h"th"r th" Dra "r ou#d 9" i:prison"d or and %in"d!D"tra8tors> ho "7"r> point"d out that th" IPC a#r"ad@

"n7ision"d 8ri:ina# #ia9i#it@ %or 8h" u"59oun8ing h"r"

dishon"st or %raudu#"nt int"ntion or mens rea on part o% th"

Dra "r as "7id"nt> na:"#@> 8h"ating> %raud> 8ri:ina#

9r"a8h o% trust "t8! Th"r"%or"> th"r" as no ignoring

%a8tors #i " i##it"ra8@> indisp"nsa9#" n"8"ssiti"s>


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+4

hon"st inno8"nt :ista "> 9an %rauds> bona fide 9"#i"%>

and or un" p"8t"d atta8h:"nt or %r""King o% a88ount in an@


27/87Page 27

+

In th" USA> so:" Stat"s ha7" th"ir o n #a s> r" uiring

%raudu#"nt int"nt or no #"dg" o% insu%%i8i"nt %unds to 9"

:ad" good! Fran8" has 8ri:ina#iK"d and su9s" u"nt#@

d"8ri:ina#iK"d th" dishonour " 8"pt in #i:it"d

8ir8u:stan8"s! Inst"ad> it pro7id"s %or dis ua#i%i8ation %ro:

issuing 8h" u"s> a pra8ti8" hi8h had 9""n adopt"d in Ita#@

and Spain a#so! '" ha7" und"rta "n this su88in8t stud@

:ind%u# o% th" %a8t that Par#ia:"ntar@ d"9at"s ha7" a #i:it"d

part to p#a@ in int"rpr"tation o% statut"s> th" pr"su:ption

9"ing that L"gis#ators ha7" th" " p"ri"n8"> " p"rtis" and

#anguag" s i##s to dra%t #a s hi8h una:9iguous#@ 8on7"@

th"ir int"ntions and " p"8tations %or th" "na8t:"nts! 'hatis pa#pa9#@ 8#"ar is that Par#ia:"nt as a ar" that th"@ "r"

8on7"rting 8i7i# #ia9i#it@ into 8ri:ina# 8ont"nt int"r a#ia 9@ th"

d"":ing %i8tion o% 8u#pa9i#it@ in t"r:s o% th" pand"8t

8o:prising S"8tion 1*6 and th" su88""ding S"8tions> hi8h

s"7"r"#@ 8urtai# d"%"n8"s to pros"8ution! Par#ia:"nt as

a#so a ar" that th" o%%"n8" o% 8h"ating "t8!> a#r"ad@

"n7isag"d in th" IPC> 8ontinu"d to 9" a7ai#a9#"!


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+6

CIVIL LA/ CONCEPTS NOT STRICTL APPLICABLE

1-! '" ha7" a#r"ad@ 8aution"d against th"" trapo#ation o% 8i7i# #a 8on8"pts su8h as G8aus" o% a8tion

onto 8ri:ina# #a ! S"8tion 1 o% th" CrPC una:9iguous#@

stat"s that "7"r@ o%%"n8" sha## ordinari#@ 9" in uir"d into and

tri"d 9@ a Court ithin hos" #o8a# or

as ordinar@ pro8""dings in a Court o%


29/87Page 29

+)

or prot"8tion o% th" rights o% th" initiator o% th" pro8""dings!

GA8tion> g"n"ra##@ :"ans a #itigation in a 8i7i# Court %or th"

r"8o7"r@ o% indi7idua# right or r"dr"ss o% indi7idua# rong>

in8#usi7"> in its prop"r #"ga# s"ns"> o% suits 9@ th" Cro n 5

.Brad#augh 7! C#ar " 6 App"a# Cas"s *(- p!*412! Un#i " 8i7i#

a8tions> h"r" th" P#ainti%% has th" 9urd"n o% %i#ing and

pro7ing its 8as"> th" r"sponsi9i#it@ o% in7"stigating a 8ri:">

:arsha##ing "7id"n8" and itn"ss"s> r"sts ith th" Stat"!

Th"r"%or"> hi#" th" 8on7"ni"n8" o% th" D"%"ndant in a 8i7i#

a8tion :a@ 9" r"#"7ant> th" 8on7"ni"n8" o% th" so 8a##"d

8o:p#ainant 7i8ti: has #itt#" or no ro#" to p#a@ in 8ri:ina#

pros"8ution! ""ping in p"rsp"8ti7" th" pr"s"n8" o% th"ord Gordinari#@ in S"8tion 1 o% CrPC> " hast"n to

adu:9rat" that th" " 8"ptions to it ar" 8ontain"d in th"

CrPC its"#%> that is> in th" 8ont"nts o% th" su88""ding S"8tion

1 6! Th" CrPC a#so 8ontains an " p#i8ation o% G8o:p#aint as

an@ a##"gation to a Magistrat" ith a 7i" to his ta ing

a8tion in r"sp"8t o% th" 8o::ission o% an o%%"n8"3 not 9"ing

a po#i8" r"port! Pros"8ution "nsu"s %ro: a Co:p#aint or


30/87Page 30

*,

po#i8" r"port %or th" purpos" o% d"t"r:ining th" 8u#pa9i#it@ o%

a p"rson a88us"d o% th" 8o::ission o% a 8ri:"3 and un#i " a

8i7i# a8tion or suit is 8arri"d out /or ?pros"8ut"d;0 9@ th"

Stat" or its no:inat"d ag"n8@! Th" prin8ipa# d"%inition o%

Gpros"8ution i:part"d 9@ B#a8 ;s La Di8tionar@ ( th Edition

is Ga 8ri:ina# a8tion3 th" pro8""ding institut"d and 8arri"d

on 9@ du" pro8"ss o% #a > 9"%or" a 8o:p"t"nt Tri9una#> %or

th" purpos" o% d"t"r:ining th" gui#t or inno8"n8" o% a

p"rson 8harg"d ith 8ri:"! Th"s" r"%#"8tions ar" n"8"ssar@

9"8aus" S"8tion 1-+/90 o% th" NI A8t 8ontains th" ords>

Gth" 8aus" o% a8tion aris"s und"r th" pro7iso to S"8tion

1*6 > r"su#ting argua9#@> 9ut in our opinion irr"#"7ant#@> toth" 9#ind 9orro ing o% "ss"ntia##@ 8i7i# #a attri9ut"s onto

8ri:ina# pro8""dings! '" r"it"rat" that S"8tion 1 6 ad:its

o% no d"9at" that in 8ri:ina# pros"8ution> th" 8on8"pt o%

G8aus" o% a8tion > 9"ing th" 9und#" o% %a8ts r" uir"d to 9"

pro7"d in a suit and a88ording#@ a#so 9"ing r"#"7ant %or th"

p#a8" o% suing> is not p"rtin"nt or g"r:an" %or d"t"r:ining

t"rritoria#


31/87Page 31

*1

" p#i8it#@ stat"s that "7"r@ o%%"n8" sha## ordinari#@ 9"

in uir"d into and tri"d 9@ a Court ithin hos" #o8a#

sin8"

8ogniKan8" o% th" o%%"n8" is su9 th" ":p#o@:"nt o% th"phras" G8aus" o% a8tion in S"8tion 1-+ o% th" NI A8t is

apposit" %or ta ing 8ogniKan8"> 9ut inappropriat" and

irr"#"7ant %or d"t"r:ining 8o::ission o% th" su9


32/87Page 32

*+

A8t 1)66! Si:i#ar situation is statutori#@ 8r"at"d 9@ S"8tion

1) o% th" En7iron:"nta# Prot"8tion A8t 1)64> S"8tion 11 o%

th" C"ntra# Sa#"s Ta A8t 1)(4> S"8tion + ) o% th" In8o:"

Ta A8t> S"8tions 1*+ and *,6> CrPC> S"8tion 1* o% th"

Custo:s A8t "t8! It ou#d 9" id#" to 8ont"nd that th"

o%%"n8" 8o:"s into " ist"n8" on#@ on th" grant o% p"r:ission

%or pros"8ution> or that this p"r:ission 8onstitut"s an

int"gra# part o% th" o%%"n8" its"#%! It ou#d a#so 9" %uti#" to

argu" that th" p#a8" h"r" th" p"r:ission is grant"d ou#d

pro7id" th" 7"nu" %or th" tria#! I% san8tion is not grant"d th"

o%%"n8" do"s not 7anish! E ua##@> i% san8tion is grant"d %ro:

a p#a8" oth"r than h"r" th" 8ri:" is 8o::itt"d> it is th"#att"r hi8h i## r":ain th" p#a8" %or its pros"8ution!

SECTION 18 NI ACT

1(! Th" :argina# not" o% S"8tion 1*6 o% th" NI A8t

" p#i8it#@ d"%in"s th" o%%"n8" as 9"ing th" dishonour o%

8h" u"s %or insu%%i8i"n8@> "t8!> o% %unds in th" a88ount! O%

8ours"> th" h"adings> 8aptions or op"ning ords o% a pi"8"


33/87Page 33

**

o% #"gis#ation ar" nor:a##@ not stri8t#@ or 8o:pr"h"nsi7"#@

d"t"r:inati7" o% th" s ""p o% th" a8tua# S"8tion its"#%> 9ut it

do"s pr"sag" its int"nd:"nt! S"" Fri8 India Ltd! 7! Union o%

India /1)),0 1 SCC -,, and Forag" & Co! 7! Muni8ipa#

Corporation o% r"at"r Bo:9a@ /1)))0 6 SCC ( !

A88ording#@> un#"ss th" pro7isions o% th" S"8tion 8#"ar#@ point

to th" 8ontrar@> th" o%%"n8" is 8on8"rn"d ith th" dishonour

o% a 8h" u"3 and in th" 8onundru: 9"%or" us th" 9od@ o%

this pro7ision sp"a s in th" sa:" ti:9r" sin8" it r"%"rs to a

8h" u" 9"ing Gr"turn"d 9@ th" 9an unpaid ! Non" o% th"

pro7isions o% th" IPC ha7" 9""n r"nd"r"d nugator@ 9@

S"8tion 1*6 o% th" NI A8t and 9oth op"rat" on th"ir o n! It istrit" that mens rea is th" uint"ss"ntia# o% "7"r@ 8ri:"! Th"

o9


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*-

und"r S"8tion 1*6 9ut a#so 9@ 7irtu" o% th" su88""ding t o

S"8tions! S"8tion 1*) 8ar7"s out th" pr"su:ption that th"

ho#d"r o% a 8h" u" has r"8"i7"d it %or th" dis8harg" o% an@

#ia9i#it@! S"8tion 1-, 8#ari%i"s that it i## not 9" a7ai#a9#" as a

d"%"n8" to th" dra "r that h" had no r"ason to 9"#i"7">

h"n h" issu"d th" 8h" u"> that it ou#d 9" dishonour"d!

S"8tion 1*6 un" ui7o8a##@ stat"s that th" o%%"n8" is

8o::itt"d no soon"r th" dra "" 9an r"turns th" 8h" u"

unpaid!

14! S"8tion 1*6 NI A8t is stru8tur"d in t o parts th"

pri:ar@ and th" pro7isor@! It :ust 9" "pt in :ind that th"

L"gis#atur" do"s not ordain ith on" hand and i::"diat"#@n"gat" it ith th" oth"r! Th" pro7iso o%t"n 8ar7"s out a

:inor d"tra8tion or di:inution o% th" :ain pro7ision o% hi8h

it is an app"ndi or add"ndu: or au i#iar@! B#a8 La

Di8tionar@ stat"s in th" 8ont" t o% a pro7iso that it is Ga

#i:itation or " 8"ption to a grant :ad" or authorit@

8on%"rr"d> th" "%%"8t o% hi8h is to d"8#ar" that th" on" sha##

not op"rat"> or th" oth"r 9" " "r8is"d> un#"ss in th" 8as"


35/87Page 35

*(

pro7id"d! ! A 8#aus" or part o% a 8#aus" in a statut"> th"

o%%i8" o% hi8h is "ith"r to " 8"pt so:"thing %ro: th"

"na8ting 8#aus"> or to ua#i%@ or r"strain its g"n"ra#it@> or to

" 8#ud" so:" possi9#" ground o% :isint"rpr"tation o% its

" t"nt! It shou#d a#so 9" "pt in p"rsp"8ti7" that a pro7iso

or a 8ondition ar" s@non@:ous! In our p"r8"ption in th"

8as" in hand th" 8ont"nts o% th" pro7iso p#a8" 8onditions on

th" op"ration o% th" :ain pro7ision> hi#" it do"s %or: a

8onstitu"nt o% th" 8ri:" its"#%> it :odu#at"s or r"gu#at"s th"

8ri:" in 8ir8u:stan8"s h"r"> un#"ss its pro7isions ar"

8o:p#i"d ith> th" a#r"ad@ 8o::itt"d 8ri:" r":ains

i:p"r7ious to pros"8ution! Th" pro7iso to S"8tion 1*6 o% th"NI A8t %"atur"s thr"" %a8tors hi8h ar" additiona##@ r" uir"d

%or pros"8ution to 9" su88"ss%u#! In this asp"8t S"8tion 1-+

8orr"8t#@ ":p#o@s th" t"r: G8aus" o% a8tion as 8o:p#ian8"

ith th" thr"" %a8tors 8ontain"d in th" pro7iso ar" "ss"ntia#

%or th" 8ogniKan8" o% th" o%%"n8"> "7"n though th"@ ar" not

part o% th" a8tion 8onstituting th" 8ri:"! To this " t"nt "

r"sp"8t%u##@ 8on8ur ith Bhaskaran in that th"


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*4

8on8at"nation o% a## th"s" 8on8o:itants> 8onstitu"nts or

ingr"di"nts o% S"8tion 1*6 NI A8t> is "ss"ntia# %or th"

su88"ss%u# initiation or #aun8h o% th" pros"8ution! '">

ho "7"r> ar" o% th" 7i" that so %ar as th" o%%"n8" its"#% th"

pro7iso has no ro#" to p#a@! A88ording#@ a r"ading o% S"8tion

1*6 NI A8t in 8on situs or

7"nu" o% "7"n though> S"8tion -+, is sti##

a7ai#a9#" in 8as" th" pa@"" %inds it ad7antag"ous or

8on7"ni"nt to pro8""d und"r that pro7ision! An

int"rpr"tation shou#d not 9" i:part"d to S"8tion 1*6 hi8h


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*

i## r"nd"r it as a d"7i8" o% harass:"nt i!"! 9@ s"nding

noti8"s %ro: a p#a8" hi8h has no 8asua# 8onn"8tion ith th"

transa8tion its"#%> and or 9@ pr"s"nting th" 8h" u"/s0 at an@

o% th" 9an s h"r" th" pa@"" :a@ ha7" an a88ount! In our

dis8"rn:"nt> it is a#so no :ani%"st that trad"rs and

9usin"ss:"n ha7" 9"8o:" r"8 #"ss and in8autious in

" t"nding 8r"dit h"r" th"@ ou#d h"r"to%or" ha7" 9""n

" tr":"#@ h"sitant> so#"#@ 9"8aus" o% th" a7ai#a9i#it@ o%

r"dr"ss 9@ a@ o% 8ri:ina# pro8""dings! It is a# a@s op"n to

th" 8r"ditor to insist that th" 8h" u"s in u"stion 9" :ad"

pa@a9#" at a p#a8" o% th" 8r"ditor;s 8on7"ni"n8"! Toda@;s

r"a#it@ is that th" "7"r@ Magistra8@ is inundat"d ithpros"8utions und"r S"8tion 1*6 NI A8t> so :u8h so that th"

9urd"n is 9"8o:ing un9"ara9#" and d"tri:"nta# to th"

disposa# o% oth"r " ua##@ pr"ssing #itigation! '" thin that

Courts ar" not r" uir"d to t ist th" #a to gi7" r"#i"% to

in8autious or i:p"tuous p"rsons3 9"@ond S"8tion 1*6 o% th"

NI A8t!

16! '" %""# 8o:p"##"d to r"it"rat" our ":path@ ith a


38/87Page 38

*6

pa@"" ho has 9""n dup"d or d"#ud"d 9@ a s ind#"r into

a88"pting a 8h" u" as 8onsid"ration %or d"#i7"r@ o% an@ o%

his prop"rt@3 or 9"8aus" o% th" r"8"ipt o% a 8h" u" has

indu8"d th" pa@"" to o:it to do an@thing r"su#ting in so:"

da:ag" to th" pa@""! Th" r"#i"% introdu8"d 9@ S"8tion 1*6

o% th" NI A8t is in addition to th" 8ont":p#ations in th" IPC!

It is sti## op"n to su8h a pa@"" r"8ipi"nt o% a dishonour"d

8h" u" to #odg" a First In%or:ation R"port ith th" Po#i8" or

%i#" a Co:p#aint dir"8t#@ 9"%or" th" 8on8"rn"d Magistrat"! I%

th" pa@"" su88""ds in "sta9#ishing that th" indu8":"nt %or

a88"pting a 8h" u" hi8h su9s" u"nt#@ 9oun8"d had

o88urr"d h"r" h" r"sid"s or ordinari#@ transa8ts 9usin"ss>h" i## not ha7" to su%%"r th" tra7ai#s o% rath"r than a

Co:p#aint und"r S"8tion 1*6 o% th" NI A8t! And o% 8ours">

h" 8an a# a@s %i#" a suit %or r"8o7"r@ h"r"7"r th" 8aus" o%

a8tion aris"s d"p"nd"nt on his 8hoosing!


39/87Page 39

*)

1)! Th" int"rpr"tation o% S"8tion 1*6 o% th" NI A8t

hi8h 8o::"nds its"#% to us is that th" o%%"n8"

8ont":p#at"d th"r"in stands 8o::itt"d on th" dishonour o%

th" 8h" u"> and a88ording#@ th" JMFC at th" p#a8" h"r" this

o88urs is ordinari#@ h"r" th" Co:p#aint :ust 9" %i#"d>

"nt"rtain"d and tri"d! Th" 8ogniKan8" o% th" 8ri:" 9@ th"

JMFC at that p#a8" ho "7"r> 8an 9" ta "n on#@ h"n th"

8on8o:itants or 8onstitu"nts 8ont":p#at"d 9@ th" S"8tion

8on8at"nat" ith "a8h oth"r! '" 8#ari%@ that th" p#a8" o% th"

issuan8" or d"#i7"r@ o% th" statutor@ noti8" or h"r" th"

Co:p#ainant 8hoos"s to pr"s"nt th" 8h" u" %or "n8ash:"nt

9@ his 9an ar" not r"#"7ant %or purpos"s o% t"rritoria#


40/87Page 40

-,

sha## d"8id" 9@ this Judg:"nt! '" 8#ari%@ that th"

Co:p#ainant is statutori#@ 9ound to 8o:p#@ ith S"8tion 1

"t8! o% th" CrPC and th"r"%or" th" p#a8" or situs h"r" th"

S"8tion 1*6 Co:p#aint is to 9" %i#"d is not o% his 8hoosing!

Th" t"rritoria#


41/87Page 41

-1

not 8o::"nd its"#% to us! Cons" u"nt on 8onsid"ra9#" 8on5

sid"ration " thin it " p"di"nt to dir"8t that on#@ thos"

8as"s h"r"> post th" su::oning and app"aran8" o% th" a#5

#"g"d A88us"d> th" r"8ording o% "7id"n8" has 8o::"n8"d as

"n7isag"d in S"8tion 1-(/+0 o% th" N"gotia9#" Instru:"nts

A8t> 1661> i## pro8""ding 8ontinu" at that p#a8"! To 8#ari%@>

r"gard#"ss o% h"th"r "7id"n8" has 9""n #"d 9"%or" th" Mag5

istrat" at th" pr"5su::oning stag"> "ith"r 9@ a%%ida7it or 9@

ora# stat":"nt> th" Co:p#aint i## 9" :aintaina9#" on#@ at

th" p#a8" h"r" th" 8h" u" stands dishonour"d! To o97iat"

and "radi8at" an@ #"ga# 8o:p#i8ations> th" 8at"gor@ o% Co:5

p#aint 8as"s h"r" pro8""dings ha7" gon" to th" stag" o%S"8tion 1-(/+0 or 9"@ond sha## 9" d"":"d to ha7" 9""n

trans%"rr"d 9@ us %ro: th" Court ordinari#@ poss"ssing t"rrito5

ria# as no 8#ari%i"d> to th" Court h"r" it is

pr"s"nt#@ p"nding! A## oth"r Co:p#aints /o97ious#@ in8#uding

thos" h"r" th" a88us"d r"spond"nt has not 9""n prop"r#@

s"r7"d0 sha## 9" r"turn"d to th" Co:p#ainant %or %i#ing in th"

prop"r Court> in 8onsonan8" ith our " position o% th" #a ! I%


42/87Page 42

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su8h Co:p#aints ar" %i#"d r"%i#"d ithin thirt@ da@s o% th"ir r"5

turn> th"@ sha## 9" d"":"d to ha7" 9""n %i#"d ithin th" ti:"

pr"s8ri9"d 9@ #a > un#"ss th" initia# or prior %i#ing as its"#%

ti:" 9arr"d !

DISPOSAL OF PRESENT APPEALS

Cr#! App"a# No!++6 o% +,,)

+1! A #"arn"d Sing#" Judg" o% th" High Court o% Judi8atur" at

Bo:9a@> Nagpur B"n8h has> pursuant to a thr"ad9ar"

dis8ussion o% Bhaskaran 8on8#ud"d that sin8" th"

8on8"rn"d 8h" u" as dra n on th" Ban o% India> Bhandara

Bran8h> Maharashtra h"r" it as dishonour"d> th" Judi8ia#

Magistrat" First C#ass> Digras> Distri8t a7at:a# had no

in th" i:pugn"d


43/87Page 43

-*

shou#d 9" dis:iss"d3 inst"ad h" ord"r"d that it 9" r"turn"d

to th" 8o:p#ainant %or %i#ing in th" appropriat" Court!

Th" App"a# is a88ording#@ dis:iss"d!

Cr#! App"a# No! 1()* o% +,1-.Arising out o% S!L!P!/Cr#!0No!+, o% +,,)

++! In this App"a# th" R"spond"nt5a88us"d> ha7ing

pur8has"d "#"8troni8 it":s %ro: th" App"##ant58o:pan@>

issu"d th" 8h" u" in u"stion dra n on UCO Ban > Tangi>

Orissa hi8h as pr"s"nt"d 9@ th" Co:p#ainant58o:pan@ at

Stat" Ban o% India> Ah:"dnagar Bran8h> Maharashtra as its

9ran8h o%%i8" as #o8at"d at Ah:"dnagar! Th" 8h" u" as

dishonour"d 9@ UCO Ban > Tangi> Orissa! A Co:p#aint as

%i#"d 9"%or" JMFC> Ah:"dnagar! An app#i8ation as %i#"d 9@

th" R"spond"nt5a88us"d und"r S"8tion 1 CrPC u"stioning

th" ho h"#d that sin8"

th" d":and noti8" as issu"d %ro: and th" pa@:"nt as

8#ai:"d at Ah:"dnagar> h" poss"ss"d Ah:"dnagar that th" r"8"ipt o% noti8" and non5

pa@:"nt o% th" d":and"d a:ount ar" %a8tors hi8h i##


44/87Page 44

--

ha7" pro:in"n8" o7"r th" p#a8" h"r"%ro: th" noti8" o%

d":and as issu"d and h"#d that JMFC> Ah:"dnagar did not

ha7" th" t"rritoria# 1()( & 14,1 to 14,* o% +,1-.Arising out o% S!L!P!/Cr#!0Nos!+11+ o% +,,) and +11 o%+,,)3 * 4+ o% +,1+3 *)-* o% +,1+3 *)-- o% +,1+2

+*! Th" %a8ts 9"ing id"nti8a# to Cri:ina# App"a# arising out

o% S!L!P!/Cr#!0No!+, o% +,,)> th"s" App"a#s stand

dis:iss"d!

Cr#! App"a# Nos!1()4514,, o% +,1-.Arising out o% S!L!P!/Cr#!0Nos!1*,651*1+ o% +,,)2

+-! Th" App"##ant58o:p#ainant h"r"in has its R"gist"r"d

O%%i8" in D"#hi %ro: h"r" th" R"spond"nts5a88us"d ar" a#so


45/87Page 45

-(

8arr@ing on th"ir 9usin"ss! Th" 8h" u"s in u"stion "r"

issu"d 9@ th" R"spond"nt No!+5a88us"d dra n on Indian

O7"rs"as Ban > Connaught P#a8"> N" D"#hi! Ho "7"r> th"

sa:" "r" pr"s"nt"d and dishonour"d at Nagpur>

Maharashtra h"r" th" Co:p#ainant stat"s it a#so has an

o%%i8"! Th"r" is no 8#ari%i8ation h@ th" 8h" u"s had not

9""n pr"s"nt"d in D"#hi h"r" th" Co:p#ainant had its

R"gist"r"d O%%i8"> a 8hoi8" hi8h " thin is 8apri8ious and

p"r%idious> int"nd"d to 8aus" harass:"nt! Upon 8h" u"s

ha7ing 9""n dishonour"d 9@ th" 8on8"rn"d 9an at D"#hi>

%i7" Co:p#aints "r" %i#"d 9"%or" Judi8ia# Magistrat" First

C#ass> Nagpur ho h"ard th" Co:p#aints> and a#so r"8ord"dth" "7id"n8" #"d 9@ 9oth th" parti"s! Ho "7"r> th" JMFC>

Nagpur a8 uitt"d th" R"spond"nt No!+5a88us"d on th"

ground o% not ha7ing t"rritoria# th" Nagpur as part#@ s"t asid" so %ar as th"

a8 uitta# o% th" R"spond"nt No!+5a88us"d as 8on8"rn"d

and it as ord"r"d that th" Co:p#aints 9" r"turn"d %or %i#ing


46/87Page 46

-4

9"%or" th" prop"r Court! In 7i" o% th" 8on8#usion arri7"d at

9@ us a9o7"> th"s" App"a#s ar" a#so dis:iss"d!

Cr#! App"a# No! 14,- o% +,1-.Arising out o% S!L!P!/Cr#!0No!() o% +,1*2

+(! Th" 8h" u" in u"stion as dra n 9@ th" R"spond"nt5

a88us"d on Stat" Ban o% Tra7an8or"> D"#hi! Ho "7"r> it as

pr"s"nt"d 9@ th" App"##ant58o:p#ainant at Auranga9ad! A

Co:p#aint as %i#"d 9"%or" JMFC> Auranga9ad ho issu"d

pro8"ss! R"spond"nt5a88us"d %i#"d an app#i8ation und"r

S"8tion +,* o% CrPC s"" ing dis:issa# o% th" Co:p#aint! Th"

app#i8ation as dis:iss"d on th" pr"di8ation that on8"

pro8"ss had 9""n initiat"d> th" Co:p#aint 8ou#d not 9"

dis:iss"d! On a rit p"tition 9"ing %i#"d 9"%or" th" High

Court o% Bo:9a@> Auranga9ad B"n8h> th" ord"r o% issuan8"

o% pro8"ss as s"t asid" and th" Co:p#aint as ord"r"d to

9" r"turn"d %or 9"ing pr"s"nt"d 9"%or" a 8o:p"t"nt 8ourt

ha7ing a %"atur"


47/87Page 47

-

hi8h had not 9""n 8o:pr"h"nsi7"#@ grasp"d 9@ th" #att"r!

Th" High Court not"d that th" R"gist"r"d O%%i8" o% th"

Co:p#ainant as at Chit"gaon> T"hsi# Paithan> Distri8t

Auranga9ad h"r"as th" A88us"d as transa8ting 9usin"ss

%ro: D"#hi! Th" High Court pithi#@ und"rs8or"d that in

paragraph - o% th" Co:p#aint it had 9""n sp"8i%i8a##@

8ont"nd"d that 8r"dit %a8i#it@ as gi7"n to th" A88us"d in

D"#hi> h"r" th" Co:p#ainant58o:pan@ a#so had its 9ran8h

o%%i8"! Th" statutor@ noti8" had a#so ":anat"d %ro:

Auranga9ad> and it had 9""n d":and"d that pa@:"nt

shou#d 9" :ad" in that 8it@ ithin th" sp"8i%i"d ti:"! It as

a#so th" Co:p#ainant;s 8as" that th" In7oi8"> in 8as" o%disput"s> r"stri8t"d


48/87Page 48

-6

a:ount has a#r"ad@ 9""n %i#"d in D"#hi! '" :a@

i::"diat"#@ r"it"rat" that th" prin8ip#"s p"rtaining to th"

8aus" o% a8tion as p"r8"i7"d in 8i7i# #a ar" not r"#"7ant in

8ri:ina# pros"8ution! 'hi#st th" 8#aus" r"stri8ting

pro7id"d an@ part o% th" 8aus" o% a8tion

had aris"n in Auranga9ad> it has no 9"aring on th" situs in

8ri:ina# pros"8utions! Sin8" a Ci7i# Suit is p"nding> "

hast"n to 8#ari%@ that " ar" not " pr"ssing an@ opinion on

th" u"stion o% h"th"r th" 8ourts at D"#hi "nit 8o::itt"d an "rror in ana#@King th" 8aus" o% a8tion as "##

as th" 8o7"nant r"stri8ting th"

i:pugn"d Auranga9ad has no


49/87Page 49

-)

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!J!.T!S! THA UR2

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!J!.$I RAMAJIT SEN2

!!!!!! !!!!!!!!! J!.C! NA APPAN2

N" D"#hi

August 1> +,1-!


50/87Page 50

(,

REPORTABLE

IN THE SUPREME COURT OF INDIACRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO.2287 OF 2009

DASHRATH RUPSINGH RATHOD …Appella !

"e#$%$

STATE OF MAHARASHTRA & ANR. …Re$p' (e !$

)ITH

CRIMINAL APPEAL NO. *+9, OF 20*-A#/$/ '%! '1 S.L.P. C#l. N'.2077 '1 2009

CRIMINAL APPEAL NO. *+9- OF 20*-A#/$/ '%! '1 S.L.P. C#l. N'.2**2 '1 2009

CRIMINAL APPEAL NO. *+9+ OF 20*-A#/$/ '%! '1 S.L.P. C#l. N'.2**7 '1 2009

CRIMINAL APPEAL NO. *+934*300 OF 20*-A#/$/ '%! '1 S.L.P. C#l. N'$.*,084*,*2 '1 2009

CRIMINAL APPEAL NO. *30* OF 20*-A#/$/ '%! '1 S.L.P. C#l. N'.,732 '1 20*2

CRIMINAL APPEAL NO. *302 OF 20*-A#/$/ '%! '1 S.L.P. C#l. N'.,9-, '1 20*2

CRIMINAL APPEAL NO. *30, OF 20*-A#/$/ '%! '1 S.L.P. C#l. N'.,9-- '1 20*2

ANDCRIMINAL APPEAL NO. *30- OF 20*-

A#/$/ '%! '1 S.L.P. C#l. N'.+9 '1 20*,


51/87Page 51

(1

J U D G M E N T

T.S. Thakur, J.

*. I 5a6e 5a( !5e a(6a !a e '1 '/ !5#'% 5 !5e (#a1! '#(e#

p#'p'$e( e$!ee e( #'!5e# "/:#a a;/! Se < J. I e !/#el

a #ee =/!5 !5e >' >l%$/' $ =5/>5 e#%(/!e #'!5e# 5a$ (#a=

a$e( ' a #e a#:a l a#!/>%la!e p#'>e$$ '1 #ea$' / !5a!

/ll% / e$ !5e (#a1! ;%( e ! a%!5'#e( 5/ . I ='%l( all !5e $a e

l/:e !' a(( a 1e= l/ e$ '1 '= '! e>a%$e !5e '#(e# a$

p#'p'$e( lea6e$ a #'% 5 e( e$ !' e /#' e( '%! %! ' l

e>a%$e !5e ?%e$!/' '1 la= !5a! a#/$e$ 1'# (e!e# / a!/' /$ '!' l $% $!a !/al %! '1 >' $/(e#a le / !e#e$! a ( / p'#!a >e 1'# !5e

>' e#>/al ='#l(. T5e 1a>! !5a! !5e 6/e= e/ !a:e %$ $!#/:e$

a (/$>'#(a ! '!e ' >e#!a/ a$pe>!$ =5/>5 5a6e 1'# l' ee

>' $/(e#e( $e!!le( ea#l/e# (e>/$/' $ '1 !5/$ C'%#! e/ ' l

a a((/!/' al #ea$' 1'# !5e '(e$! a((/!/' !5a! I p#'p'$e

!' a:e. O1 !5e$e (e>/$/' $ Bhaskaran’s >a$e $!a ($ '%! a$

!5e ea#l/e$! / =5/>5 !5/$ C'%#! e@a / e( !5e 6e@e( ?%e$!/' '1


52/87Page 52

(+

!e##/!'#/al ;%#/$(/>!/' '1 !5e C'%#!$ !' !# '11e >e$ p% /$5a le

% (e# Se>!/' *,8 '1 !5e Ne '!/a le I $!#% e !$ A>!< *88*

5e#e/ a1!e# >alle( NI A>! . Bhaskaran’s >a$e =a$ 5ea#( a

!='4;%( e Be >5 '1 !5/$ C'%#! =5' !'': !5e 6/e= !5a! !5e

;%#/$(/>!/' !' !# a '11e >e % (e# Se>!/' *,8 >'%l( '! e

(e!e# / e( ' l #e1e#e >e !' !5e pla>e =5e#e !5e >5e?%e =a$

(/$5' '%#e(. T5a! /$ e>a%$e (/$5' '%# '1 !5e >5e?%e =a$ '! /!$el1 a '11e >e % (e# Se>!/' *,8 '1 T5e Ne '!/a le I $!#% e !$

A>!< *88*< ' $e#6e( !5e C'%#!. T5e '11e >e /$ >' ple!e ' l =5e

!5e (#a=e# 1a/l$ !' pa !5e >5e?%e a '% ! =/!5/ !5e pe#/'( '1

1/1!ee (a $ $!/p%la!e( % (e# >la%$e > '1 !5e p#'6/$' !' Se>!/'

*,8 '1 !5e A>!. Ha6/ $a/( !5a! !5e C'%#! #e>' /$e( !5e (/11/>%l!

/ 1/@/ a pla>e =5e#e $%>5 1a/l%#e >'%l( e $a/( !' 5a6e !a:e

pla>e. I! >'%l(< $a/( !5e C'%#!< e !5e pla>e =5e#e !5e (#a=e#

#e$/(e$ '# !5e pla>e =5e#e !5e pa ee #e$/(e$ '# !5e pla>e =5e#e

e/!5e# '1 !5e >a##/e$ ' %$/ e$$. T' #e$'l6e !5/$ % >e#!a/ ! !5eC'%#! !%# e( !' Se>!/' $ *78 a ( *79 '1 !5e C#.P.C. !' 5'l( !5a!

$/ >e a '11e >e % (e# Se>!/' *,8 >a e >' ple!e( ' l =/!5 !5e


53/87Page 53

(*

>' >a!e a!/' '1 1/6e a>!$ !5a! >' $!/!%!e( !5e >' p' e !$ '1 !5e

'11e >e a C'%#! =/!5/ =5'$e ;%#/$(/>!/' a ' e '1 !5'$e a>!$

=a$ >' /!!e( ='%l( 5a6e !5e ;%#/$(/>!/' !' !# !5e '11e >e. T5e

C'%#! 5el(

“ The offence under Section 138 of the Act can be completedonly with the concatenation of a number of acts. The follow-ing are the acts which are components of the said offence:(1 drawing of the che!ue" (# presentation of the che!ue tothe ban$" (3 returning the che!ue unpaid by the drawee

ban$" (% gi&ing notice in writing to the drawer of theche!ue demanding payment of the che!ue amount" ( ' fail-ure of the drawer to ma$e payment within 1' days of thereceipt of the notice.

t is not necessary that all the abo&e fi&e acts should ha&ebeen perpetrated at the same locality. t is possible thateach of those fi&e acts could be done at fi&e different locali-ties. )ut a concatenation of all the abo&e fi&e is a sine !uanon for the completion of the offence under Section 138 ofthe *ode. n this conte+t a reference to Section 1,8(d ofthe *ode is useful. t is e+tracted below:

1,8. (a -(c(d where the offence consists of se&eral acts done indifferent local areas" it may be en!uired into or triedby a court ha&ing /urisdiction o&er any of such localareas.0

Thus it is clear" if the fi&e different acts were done in fi&edifferent localities any one of the courts e+ercising /urisdic-tion in one of the fi&e local areas can become the place oftrial for the offence under Section 138 of the Act. n otherwords" the complainant can choose any one of those courtsha&ing /urisdiction o&er any one of the local areas within theterritorial limits of which any one of those fi&e acts was


54/87Page 54

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done. As the amplitude stands so widened and so e+pansi&eit is an idle e+ercise to raise /urisdictional !uestion regardingthe offence under Section 138 of the Act.0

2. Bhaskaran 5el( !5e 1/el( 1'# !=' ea#$. T5e 1/#$! l'= !' !5e

6/e= !a:e !5/$ C'%#! / Bhaskaran’s >a$e =a$ (eal! a

!5#ee4J%( e Be >5 (e>/$/' / Shri Ishar Alloy Steels Ltd. v.

Jayaswals Neco Ltd. (2001 ! S"" #0$ . T5e ?%e$!/' !5a!

a#'$e / !5a! >a$e =a$ =5e!5e# !5e l/ /!a!/' '1 $/@ ' !5$ 1'#

p#e$e !a!/' '1 a >5e?%e 1'# e >a$5 e ! =a$ appl/>a le &i -a-&i

p#e$e !a!/' !' !5e a : '1 !5e pa ee '# !5a! '1 !5e (#a=e#. H/ 5

C'%#!$ / !5/$ >'% !# 5a( e@p#e$$e( >' 1l/>!/ 'p/ /' $ ' !5e

$% ;e>!. T5/$ C'%#! #e$'l6e( !5e >lea6a e / !5'$e

p#' '% >e e !$ 5'l(/ !5a! !5e >5e?%e '% 5! !' e p#e$e !e(

!' !5e (#a=ee a : 1'# /!$ (/$5' '%# !' p#'6/(e a a$/$ 1'#

p#'$e>%!/' % (e# Se>!/' *,8. T5e C'%#! ' $e#6e(

The use of the words a ban$0 and the ban$0 in the sectionare an indicator of the intention of the legislature. The

ban$0 referred to in pro&iso (a to the pro&iso to Section138 of the Act would mean the drawee ban$ on which theche!ue is drawn and not all ban$s where the che!ue is pre-sented for collection including the ban$ of the payee" inwhose fa&our the che!ue is issued.


55/87Page 55

((

t" howe&er" does not mean that the che!ue is always to be presented to the drawer2s ban$ on which the che!ue is is-sued. owe&er" a combined reading of Sections 3" ,# and138 of the Act would clearly show that the law mandates the

che!ue to be presented at the ban$ on which it is drawn ifthe drawer is to be held criminally liable. Such presentationis necessarily to be made within si+ months at the ban$ onwhich the che!ue is drawn" whether presented personally orthrough another ban$" namely" the collecting ban$ of the

payee.0

,. Ishar Alloy’s >a$e $%p#a (/( '! (eal =/!5 !5e ?%e$!/' '1

;%#/$(/>!/' '1 !5e C'%#!$ '# =a$ Bhaskaran '!/>e( !5e C'%#!

=5/le 5'l(/ !5a! !5e p#e$e !a!/' '1 !5e >5e?%e '% 5! !' e

=/!5/ $/@ ' !5$ !' !5e (#a=ee a :. B%! !5a! ('e$ '!< / '%#

6/e=< a!e#/all a11e>! !5e l' /> % (e#l / !5e p#' '% >e e !<

=5/>5 p#' '% >e e ! >' / a$ /! /$ 1#' a e >5 '1 >''#(/ a!e

;%#/$(/>!/' / ($ %$. )5e l' />all e@!e (e( !' !5e ?%e$!/' '1

;%#/$(/>!/' '1 !5e C'%#! !' !a:e >' / a >e< =e 1/ ( /! (/11/>%l! !'

app#e>/a!e 5'= a pa ee '1 !5e >5e?%e >a p#e$e !a!/' '1 !5e

>5e?%e !' 5/$ '= a : >' 1e# ;%#/$(/>!/' %p' !5e C'%#! =5e#e

$%>5 a : /$ $/!%a!e. I1 p#e$e !a!/' #e1e##e( !' / Se>!/' *,8

ea $ p#e$e !a!/' !' !5e (#a=ee a : < !5e#e /$ ' a/ $a /

!5a! (/$5' '%# ='%l( e l'>al/$e( a ( >' 1/ e( !' !5e pla>e =5e#e


56/87Page 56

(4

$%>5 a : /$ $/!%a!e(. T5e ?%e$!/' /$ '! =5e!5e# '# '! !5e

pa ee >a (ep'$/! 5/$ >5e?%e / a a : '1 5/$ >5'/>e a! a

pla>e. T5e ?%e$!/' /$ =5e!5e# $%>5 (ep'$/! >a !5e pa ee

>' 1e# ;%#/$(/>!/' ' a C'%#! '1 5/$ >5'/>e O%# a $=e# /$ / !5e

e a!/6e. T5e pa ee a a ( / (ee( >a p#e$e ! !5e >5e?%e !'

a a : 1'# >'lle>!/' 1#' !5e (#a=ee a :< %! $%>5

p#e$e !a!/' =/ll e 6al/( ' l /1 !5e (#a=ee a : #e>e/6e$ !5e>5e?%e 1'# pa e ! =/!5/ !5e pe#/'( '1 $/@ ' !5$ 1#' !5e (a!e

'1 /$$%e. D/$5' '%# '1 !5e >5e?%e ='%l( e l'>al/$e( a! !5e pla>e

=5e#e !5e (#a=ee a : /$ $/!%a!e(. P#e$e !a!/' '1 !5e >5e?%e a!

a pla>e< =e 5a6e ' a e# '1 ('% !< >a '! >' 1e# ;%#/$(/>!/'

%p' !5e C'%#! =/!5/ =5'$e !e##/!'#/al l/ /!$ $%>5 p#e$e !a!/'

a 5a6e !a:e pla>e.

-. T5e >a e %ar&an 'lectronics ( Ltd. v. National

anasonic India ( Ltd. (2009) 1 SCC 720 . T5a! =a$ a >a$e

=5e#e !5e >' pla/ ! % (e# Se>!/' *,8 =a$ 1/le( / a Del5/ C'%#!<' l e>a%$e !5e $!a!%!'# '!/>e #e?%/#e( !' e /$$%e( % (e# !5e

p#'6/$' !' Se>!/' *,8 =a$ /$$%e( 1#' Del5/. I1 Bhaskaran =a$


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(

>'##e>!l (e>/(e(< %ar&an $5'%l( '! 5a6e / !e#1e#e( =/!5 !5e

e@e#>/$e '1 ;%#/$(/>!/' !5e Del5/ C'%#! 1'# /$$%e '1 a '!/>e =a$

/ !e# $ '1 Bhaskaran < ' e '1 !5e 1a>!'#$ !5a! >l'!5e( !5e C'%#! /

Del5/ !' !a:e >' / a >e a ( !# !5e >a$e. %ar&an (/( '! (' $'.

I %ar&an’s >a$e !5/$ C'%#!< e p5a$/ e( !5#ee (/$!/ >! a$pe>!$.

4irstly < /! $a/( !5a! !5e#e =a$ a ='#l( '1 (/11e#e >e e!=ee /$$%e '1

a '!/>e< ' !5e ' e 5a (< a ( #e>e/p!< !5e#e'1< ' !5e '!5e#. I$$%e'1 '!/>e (/( '! /6e #/$e !' a >a%$e '1 a>!/' =5/le #e>e/p! (/(<

(e>la#e( !5e C'%#!.

+. Secondly < !5e C'%#! 5el( !5a! !5e a/ p#'6/$/' '1 Se>!/'

*,8 $!a!e( =5a! ='%l( >' $!/!%!e a '11e >e. T5e p#'6/$'

appe (e( !5e#e!' $/ pl / p'$e( >e#!a/ 1%#!5e# >' (/!/' $ =5/>5

%$! e 1%l1/lle( 1'# !a:/ >' / a >e '1 !5e '11e >e. T5e 1'll'=/

pa$$a e (eal$ =/!5 '!5 !5e$e a$pe>!$

t is one thing to say that sending of a notice is one of theingredients for maintaining the complaint but it is anotherthing to say that dishonour of a che!ue by itself constitutesan offence. 4or the purpose of pro&ing its case that the ac-cused had committed an offence under Section 138 of the5egotiable nstruments Act" the ingredients thereof are re-!uired to be pro&ed. 6hat would constitute an offence isstated in the main pro&ision. The pro&iso appended thereto"howe&er" imposes certain further conditions which are re-


58/87Page 58

(6

!uired to be fulfilled before cogni ance of the offence can beta$en. f the ingredients for constitution of the offence laiddown in pro&isos (a " (b and (c appended to Section 138of the 5egotiable nstruments Act are intended to be applied

in fa&our of the accused" there cannot be any doubt that re-ceipt of a notice would ultimately gi&e rise to the cause ofaction for filing a complaint. As it is only on receipt of thenotice that the accused at his own peril may refuse to paythe amount. *lauses (b and (c of the pro&iso to Section138 therefore must be read together. ssuance of noticewould not by itself gi&e rise to a cause of action but commu-nication of the notice would.0

3. Thirdly < !5e C'%#! 5el( !5a! /1 p#e$e !a!/' '1 !5e >5e?%e '#

/$$%e '1 '!/>e =a$ !' >' $!/!%!e a ''( #ea$' 1'# 6e$!/ >'%#!$

=/!5 ;%#/$(/>!/' !' !# '11e >e$ % (e# Se>!/' *,8< /! ='%l( lea( !'

5a#a$$ e ! '1 !5e (#a=e# '1 !5e >5e?%e$ !5e#e >all/ 1'# !5e

ee( !' $!#/:e a ala >e e!=ee !5e #/ 5!$ '1 !5e pa#!/e$ !' !5e

!#a $a>!/' . T5e C'%#! $a/(

6e cannot" as things stand today" be obli&ious of the factthat a ban$ing institution holding se&eral che!ues signed bythe same borrower can not only present the che!ue for itsencashment at four different places but also may ser&e no-tices from four different places so as to enable it to file fourcomplaint cases at four different places. This only causesgra&e harassment to the accused. t is" therefore" necessary

in a case of this nature to stri$e a balance between the rightof the complainant and the right of an accused &is-7-&is the pro&isions of the *ode of *riminal rocedure.0

7. Bhaskaran =a$< / !5e =a:e '1 !5e a '6e< >' $/(e#a l


59/87Page 59

()

(/l%!e( a ( !5e l' /> e5/ ( 6e$!/ '1 ;%#/$(/>!/' a$e( ' !5e

pla>e 1#' =5e#e !5e '!/>e =a$ /$$%e( ?%e$!/' e(. E6e

p#e$e !a!/' '1 !5e >5e?%e a$ a #ea$' 1'# a$$% p!/' '1

;%#/$(/>!/' !' !a:e >' / a >e =a$ ('% !e( 1'# a % /la!e#al a>! '1

!5e >' pla/ a ! pa ee '1 !5e >5e?%e >'%l( =/!5'%! a 1%#!5e# '#

$%pp'#!/ #ea$' >' 1e# ;%#/$(/>!/' ' a C'%#! =/!5/ =5'$e

!e##/!'#/al l/ /!$ '!5/ e@>ep! !5e p#e$e !a!/' '1 !5e >5e?%e 5a(5appe e(.

8. T5#ee #e>e ! (e>/$/' $ ee( e e !/' e( a! !5/$ $!a e =5/>5

5a6e 1'll'=e( Bhaskaran a ( a!!e p!e( !' #e>' >/le !5e #a!/' '1

!5a! >a$e =/!5 !5e $% $e?%e ! (e>/$/' $ / Ishar Alloy Steels a (

%ar&an 'lectronics . I Nishant A))arwal v. *ailash *+&ar

Shar&a (201! 10 S"" ,2 !5/$ C'%#! =a$ ' >e a a/ (eal/

=/!5 a >a$e =5e#e !5e >' pla/ ! 5a( ee 1/le( / C'%#! a! B5/=a /

/ Ha# a a =/!5/ =5'$e !e##/!'#/al ;%#/$(/>!/' !5e >' pla/ a ! 5a(

p#e$e !e( !5e >5e?%e 1'# e >a$5 e !< al!5'% 5 !5e >5e?%e =a$(#a= ' a a : a! Ga%5a!/ / A$$a . Rel / %p' !5e 6/e= !a:e

/ Bhaskaran !5/$ C'%#! 5el( !5a! !5e B5/=a / C'%#! 5a(


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4,

;%#/$(/>!/' !' (eal =/!5 !5e a!!e#. )5/le $a / $'< !5e C'%#! !#/e(

!' (/$!/ %/$5 !5e !5#ee4J%( e Be >5 (e>/$/' / Ishar Alloy

Steels $%p#a a ( !5a! #e (e#e( / %ar&an 'lectronics >a$e

$%p#a !' 5'l( !5a! !5e #a!/' '1 !5'$e (e>/$/' $ (/( '! (/l%!e !5e

p#/ >/ple $!a!e( / Bhaskaran >a$e. T5a! e@e#>/$e =a$ #epea!e(

!5/$ C'%#! / -IL Ind+stries Ltd. v. I&tiya Ah&ad Bhat

(201/ 2 S"" 2## a ( / 'scorts Ltd. v. a&a +kher ee(201/ 2 S"" 233 =5/>5 !'' 1'll'=e( Bhaskaran a ( 5el( !5a!

>' pla/ ! % (e# Se>!/' *,8 Ne '!/a le I $!#% e ! A>! >'%l( e

/ $!/!%!e( a! a ' e '1 !5e 1/6e pla>e$ #e1e##e( !' / Bhaskaran’s

>a$e.

9. )e 5a6e< =/!5 %! '$! #e$pe>! !' !5e J%( e$ >' p#/$/ !5e

Be >5 !5a! 5ea#( !5e a '6e >a$e$< 1'% ( /! (/11/>%l! !' 1'll'= $%/!

a ( $% $>#/ e !' !5e 6/e= $!a!e( / Bhasakaran . T5e #ea$' $ a#e

'! 1a# !'' $ee: a ( a e $!a!e( #/ 5! a=a .

*0. Se>!/' *,8 /$ a pe al p#'6/$/' !5a! p#e$>#/ e$ / p#/$' e !%p!' !=' ea#$ a ( 1/ e %p!' !=/>e !5e >5e?%e a '% !. I! %$!<

!5e#e1'#e< e / !e#p#e!e( $!#/>!l < 1'# /! /$ ' e '1 !5e a>>ep!e( #%le$


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41

'1 / !e#p#e!a!/' !5a! / a pe al $!a!%!e< !5e C'%#!$ ='%l( 5e$/!a!e

!' a$>#/ e a ea / < #'a(e# !5a =5a! !5e p5#a$e ='%l(

'#(/ a#/l ea#. Se>!/' *,8 /$ / !=' pa#!$. T5e e a>!/ pa#! '1

!5e p#'6/$/' a:e$ /! a % (a !l >lea# !5a! =5a! >' $!/!%!e$ a

'11e >e p% /$5a le =/!5 / p#/$' e ! a ( '# 1/ e /$ !5e (/$5' '%#

'1 a >5e?%e 1'# / $%11/>/e > '1 1% ($ e!>. / !5e a>>'% !

a/ !a/ e( !5e (#a=e# =/!5 a a : 1'# (/$>5a# e '1 a (e ! '#'!5e# l/a /l/! =5e!5e# / 1%ll '# pa#!. T5e la %a e %$e( / !5e

p#'6/$/' /$ % a / %'%$ a ( !5e / #e(/e !$ '1 !5e '11e >e >lea#l

(/$>e# / le &i . (a C5e?%e /$ (#a= !5e a>>%$e( ' a a>>'% !

a/ !a/ e( 5/ =/!5 a a :e#. (4 T5e >5e?%e a '% ! /$ /

(/$>5a# e '1 a (e ! '# l/a /l/! a ( (c T5e >5e?%e /$ #e!%# e(

% pa/( 1'# / $%11/>/e > '1 1% ($ '# !5a! !5e a '% ! e@>ee($ !5e

a##a e e ! a(e =/!5 !5e a :. B%! 1'# !5e p#'6/$' !5a!

>' p#/$e$ !5e $e>' ( pa#! '1 !5e p#'6/$/' < a (/$5' '%# 1all/

=/!5/ !5e 1'%# >'# e#$ '1 !5e e a>!/ p#'6/$/' ='%l( ep% /$5a le =/!5'%! %>5 a('. T5e p#'6/$'< 5'=e6e#< (#a=$ a

e@>ep!/' !' !5e e e#al/! '1 !5e e a>!/ pa#! '1 !5e p#'6/$/' <


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$!/p%la!/ !=' $!ep$ !5a! '% 5! !' e !a:e !5e >' pla/ a !

5'l(e# '1 !5e >5e?%e e1'#e !5e 1a/l%#e '1 !5e (#a=e# /6e$ !' !5e

1'# e# !5e >a%$e '1 a>!/' !' 1/le a >' pla/ ! a ( !5e >' pe!e !

C'%#! !' !a:e >' / a >e '1 !5e '11e >e. T5e$e $!ep$ a#e (/$!/ >!

1#' !5e / #e(/e !$ '1 !5e '11e >e =5/>5 !5e e a>!/ p#'6/$/'

>#ea!e$ a ( a:e$ p% /$5a le. I! 1'll'=$ !5a! a '11e >e =/!5/ !5e

>' !e pla!/' '1 Se>!/' *,8 /$ >' ple!e =/!5 !5e (/$5' '%# '1 !5e>5e?%e %! !a:/ >' / a >e '1 !5e $a e a C'%#! /$

1'# /((e $' l' a$ !5e >' pla/ a ! ('e$ '! 5a6e !5e >a%$e '1

a>!/' !' 1/le a >' pla/ ! / !e# $ '1 >la%$e > '1 !5e p#'6/$' #ea(

=/!5 Se>!/' *-2 =5/>5 #% $ a$ % (e#

5Section 1/26*ogni ance of offences. 95otwithstanding anythingcontained in the *ode of *riminal rocedure" 1 ,3 (# of1 ,% 9(a no court shall ta$e cogni ance of any offence punishableunder section 138 e+cept upon a complaint" in writing" madeby the payee or" as the case may be" the holder in duecourse of the che!ue;(b such complaint is made within one month of the date onwhich the cause of action arises under clause (c of the

pro&iso to section 138: < ro&ided that the cogni ance of acomplaint may be ta$en by the *ourt after the prescribed

period" if the complainant satisfies the *ourt that he hadsufficient cause for not ma$ing a complaint within such

period.=(c no court inferior to that of a >etropolitan >agistrate or a

?udicial >agistrate of the first class shall try any offence

http://indiankanoon.org/doc/1779303/http://indiankanoon.org/doc/1755922/http://indiankanoon.org/doc/1535301/http://indiankanoon.org/doc/1779303/http://indiankanoon.org/doc/1755922/http://indiankanoon.org/doc/1535301/


63/87Page 63

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punishable under section 138.

**. T5e 1'll'=/ ='%l( >' $!/!%!e >a%$e '1 a>!/' #e1e##e( !' /

$% >la%$e a '6e

a T5e >' pla/ a ! 5a$ p#e$e !e( !5e >5e?%e 1'# pa e !

=/!5/ !5e pe#/'( '1 $/@ ' !5$ 1#' !5e (a!e '1 !5e

/$$%e !5e#e'1.

T5e >' pla/ a ! 5a$ (e a (e( !5e pa e ! '1 !5e

>5e?%e a '% ! 1#' !5e (#a=e# /$$%/ a =#/!!e

'!/>e =/!5/ !5/#! (a $ '1 #e>e/p! '1 / 1'# a!/' 5/

1#' !5e a : #e a#(/ !5e (/$5' '%#.

> T5e (#a=e# 5a$ 1a/le( !' pa !5e >5e?%e a '% ! =/!5/

1/1!ee (a $ '1 !5e #e>e/p! '1 !5e '!/>e.

*2. A p#'pe# % (e#$!a (/ '1 !5e $>5e e % (e#l / !5e

p#'6/$/' ='%l( !5%$ a:e /! a % (a !l >lea# !5a! =5/le !5e

'11e >e /$ >' ple!e %p' (/$5' '%#< p#'$e>%!/' 1'# $%>5 '11e >e /$

(e1e##e( !/ll !5e !/ e !5e >a%$e '1 a>!/' 1'# $%>5 p#'$e>%!/'

a>>#%e$ !' !5e >' pla/ a !. T5e p#'6/$' / !5a! $e $e< $/ pl

p'$!p' e$ !5e a>!%al p#'$e>%!/' '1 !5e '11e (e# !/ll $%>5 !/ e 5e


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4-

1a/l$ !' pa !5e a '% ! =/!5/ !5e $!a!%!'# pe#/'( p#e$>#/ e( 1'#

$%>5 pa e !. T5e#e /$< / '%# 'p/ /' < a pla%$/ le #ea$' =5

!5/$ =a$ (' e. T5e Pa#l/a e ! / /!$ =/$(' >' $/(e#e( /! ;%$! a (

p#'pe# !' /6e !' !5e (#a=e# '1 a (/$5' '%#e( >5e?%e a

'pp'#!% /! !' pa %p !5e a '% !< e1'#e pe# /!!/ 5/$

p#'$e>%!/' ' a!!e# !5e '11e >e /$ >' ple!e< !5e ' e ! !5e

>5e?%e =a$ (/$5' '%#e(. T5e la= 5a$ !' !5a! e@!e ! #a !e( a>' >e$$/' a ( p#e$>#/ e( a $>5e e % (e# =5/>5 (/$5' '%# ee(

'! e>e$$a#/l lea( !' pe al >' $e?%e >e /1 !5e (#a=e# a:e$

a e ($ a:/ pa e ! =/!5/ !5e !/ e $!/p%la!e( ' >e !5e

(/$5' '%# /$ '!/1/e( !' 5/ . Pa e ! '1 !5e >5e?%e a '% ! =/!5/

!5e $!/p%la!e( pe#/'( =/ll / $%>5 >a$e$ (/11%$e !5e ele e ! '1

>#/ / al/! !5a! Se>!/' *,8 a!!#/ %!e$ !' (/$5' '%# =a '1 a

le al 1/>!/' / pl/>/! / !5e %$e '1 !5e ='#($ $5all e (ee e( !'

5a6e >' /!!e( a '11e >e . T5e (#a=e# ='%l( $%>5 pa e !

$!a ( a $'l6e( !5e pe al >' $e?%e >e$ '1 (/$5' '%#. T5/$$>5e e a e % /?%e !' Se>!/' *,8 NI A>!< %! !5e#e /$ 5a#(l

a ('% ! !5a! !5e Pa#l/a e ! /$ >' pe!e ! !' le /$la!e $' !'


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4(

p#'6/(e 1'# $/!%a!/' $ =5e#e a >5e?%e /$ (/$5' '%#e( e6e =/!5'%!

a >#/ / al / !e !/' ' !5e pa#! '1 !5e (#a=e#.

*,. T5e $>5e e '1 Se>!/' *,8 !5%$ '! ' l $a6e$ !5e 5' e$!

(#a=e# %! /6e$ a >5a >e !' e6e !5e (/$5' e$! ' e$ !' a:e

a e ($ a ( e$>ape p#'$e>%!/' . C' pl/a >e =/!5 !5e p#'6/$/' /$<

/ !5a! 6/e=< a a (a!'# #e?%/#e e !. See ".". Alavi %a i v.

ala7etty +ha&&ed and Another (200, # S"" 333 .*-. %ar&an / !5a! 6/e= >'##e>!l 5el( !5a! what would consti-

tute an offence is stated in the main pro&ision. The pro&iso ap-

pended thereto howe&er imposes certain further conditions which

are re!uired to be fulfilled before cogni ance of the offence can be

ta$en.0 I1 !5e Pa#l/a e ! / !e (e( !' a:e !5e >' (/!/' $ $!/p%4

la!e( / !5e p#'6/$'< al$' a$ / #e(/e !$ '1 !5e '11e >e< !5e p#'6/4

$/' ='%l( 5a6e #ea( (/11e#e !l . I! ='%l( !5e 5a6e $pe>/1/>all

a((e( !5e ='#($ and the drawer has despite receipt of a notice

demanding the payment of the amount" failed to pay the samewithin a period of fifteen days from the date of such demand made

in writing by a notice0. T5a!< 5'=e6e#< /$ '! 5'= !5e e a>!/


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44

p#'6/$/' '1 Se>!/' *,8 #ea($. T5e le /$la!%#e 5a$< /! /$ ' 6/'%$<

a(e a >lea# (/$!/ >!/' e!=ee =5a! ='%l( >' $!/!%!e a '11e >e

a ( =5a! ='%l( /6e !' !5e >' pla/ a ! !5e >a%$e '1 a>!/' !' 1/le

a >' pla/ ! 1'# !5e >'%#! >' pe!e ! !' !a:e >' / a >e. T5a! a

p#'6/$' /$ a e@>ep!/' !' !5e e e#al #%le /$ =ell $e!!le(. A p#'4

6/$' /$ a((e( !' a e a>! e ! !' ?%al/1 '# >#ea!e a e@>ep!/' !'

=5a! /$ >' !a/ e( / !5e e a>! e !. I! ('e$ '! /!$el1 $!a!e ae e#al #%le. I! $/ pl ?%al/1/e$ !5e e e#al/! '1 !5e a/ e a>!4

e !< a p'#!/' =5/>5 %! 1'# !5e p#'6/$' ='%l( 1all =/!5/ !5e a/

e a>! e !.

*+. T5e P. Ra a a!5a A/ a#< La= Le@/>' < 2 ( E(/!/' < )a(5=a &

C'. a! pa e *++2 (e1/ e$ p#'6/$' a$ 1'll'=$

The word pro&iso0 is used fre!uently to denote the clausethe first words of which are pro&ided that0 inserted in deedsand instruments generally. And containing a condition orstipulation on the performance or non-performance of which"as the case maybe. The effect of a proceeding clause or ofthe deed depends.

A *lause inserted in a legal or formal document" ma$ingsome condition" stipulation" e+ception or limitation or uponthe obser&ance of which the operation or &alidity of theinstrument depends < S. 1@'" ndian &idence Act=.

A pro&iso is generally intended to restrain the enactingclause and to e+cept something which would ha&e otherwisebeen within it or in some measure to modify the enactingclause...0


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*3. T' ?%'!e *raies on Statute Baw0" 7!5 E( .< S=ee! & Ma@=ell

a! pa e 220 f the principal ob/ect of the Act can be accomplished

and stand under the restriction of the sa&ing clause or pro&iso" the

same is not to be held &oid for repugnancy.0

*7. O e '1 !5e ea#l/e$! ;%( e !$ ' !5e $% ;e>! /$ a !5#ee J%( e

Be >5 (e>/$/' / *edarnath J+te an+8act+rin) "o. v.

"o&&ercial 9a: ;88icer< "alc+tta and ;rs. AI 1$## S" 12 .

T5e C'%#! =a$ / !5a! >a$e e@a / / !5e e11e>! '1 a p#'6/$' =5/>5

/ p'$e( a >' (/!/' ' e!!/ e@e p!/' 1#' !a@ a ( ' $e#6e(

... The substanti&e clause gi&es the e+emption and the pro&iso !ualifies the substanti&e clause. n effect the pro&isosays that part of the turno&er of the selling dealer co&eredby the terms of sub-cl. (ii will be e+empted pro&ided adeclaration in the from prescribed is furnished. To put it inother words" a dealer cannot get the e+emption unless hefurnishes the declaration in the prescribed form. t is wellsettled that Cthe effect of an e+cepting or !ualifying pro&iso"according to the ordinary rules of construction" is to e+ceptout of the preceding portion of the enactment" or to !ualifysomething enacted therein" which but for the pro&iso wouldbe within itC : see C*raies on Statute BawC" Dth dn." p.#1,.0

*8. Al$' pe#!/ e ! /$ a 1'%#4J%( e Be >5 (e>/$/' '1 !5/$ C'%#! /=warka rasad v. =warka =as Sara8 (1$,# 1 S"" 12> =5e#e

!5/$ C'%#! =a$ e@a / / =5e!5e# a >/ e a !5ea!#e e?%/ppe( =/!5


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p#';e>!'#$ a ( '!5e# 1/!!/ $ #ea( !' e la% >5e( a$ e !e#!a/ e !

5'%$e =a$ >'6e#e( % (e# !5e (e1/ /!/' '1 accommodation2 a$ (e4

1/ e( / Se>!/' 2 * ( '1 U!!a# P#a(e$5 Te p'#a# C' !#'l '1

Re ! a ( E6/>!/' A>!< *9-7. T5e p#'6/$' p#'6/(e( 1'# $' e e@>ep4

!/' 1'# 1a>!'#/e$ a ( %$/ e$$ >a##/e( / a %/l(/ . I! =a$ 5el(

!5a! $' e!/ e$ (#a1!$ e / >l%(e p#'6/$' =a '1 '6e# >a%!/'

!' #e '6e a ('% !$ a ( a>>' '(a!/' ='%l( / >l%(e !5/$ >/ 4e a 5all

18. A pro&iso must be limited to the sub/ect-matter of the enactingclause. t is a settled rule of construction that a pro&iso must prima faciebe read and considered in relation to the principal matter to which it is a

pro&iso. t is not a separate or independent enactment. E6ords are de- pendent on the principal enacting words" to which they are tac$ed as a pro&iso. They cannot be read as di&orced from their conte+tE 1 1# A.*.'%%. f the rule of construction is that prima facie a pro&iso should be

limited in its operation to the sub/ect-matter of the enacting clause" thestand we ha&e ta$en is sound. To e+pand the enacting clause" inflatedby the pro&iso" sins against the fundamental rule of construction that a

pro&iso must be considered in relation to the principal matter to which itstands as a pro&iso. A pro&iso ordinarily is but a pro&iso" although thegolden rule is to read the whole section" inclusi&e of the pro&iso" in suchmanner that they mutually throw light on each other and result in a har-monious construction.

The proper course is to apply the broad general rule of constructionwhich is that a section or enactment must be construed as a whole" each

portion throwing light if need be on the rest.

The true principle undoubtedly is" that the sound interpretation andmeaning of the statute" on a &iew of the enacting clause" sa&ing clause"and pro&iso" ta$en and construed together is to pre&ail. (>a+well on n-terpretation of Statutes" 1@th dn. p. 1D# 0

(emphasis supplied


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4)

*9. I Sreenivasa ?eneral 9raders @ ;rs. v. State o8 Andhra

radesh @ ;rs. (1$>! / S"" !3! a '!5e# !5#ee4 J%( e e >5

'1 !5/$ C'%#! e@a / e( !5e #'le '1 a p#'6/$' =5/le / !e#p#e!/ R%le

7- * '1 !5e A (5#a P#a(e$5 A #/>%l!%#al P#'(%>e & L/6e$!'>:

Ma#:e!$ R%le$< *939.

The normal function of a pro&iso is to e+cept something outof the main enacting part or to !ualify something enactedtherein which but for the pro&iso would be within the

pur&iew of the enactment. ro&iso to Fule ,%(1 is added to!ualify or create an e+ception.0

20. Re1e#e >e a al$' e a(e !' 9ri4hovandas %ari4hai

9a&4oli v . ?+ arat even+e 9ri4+nal and others (1$$1 !

S"" //2 =5e#e/ !5/$ C'%#! >lea#l 5el( !5a! =5e !5e la %a e '1

!5e a/ e a>! e ! /$ >lea#< !5e p#'6/$' >a 5a6e ' e11e>! ' !5e

/ !e#p#e!a!/' '1 !5e a/ >la%$e.

0,. t is a cardinal rule of interpretation that a pro&iso to a particular pro&isionof a statute only embraces the field" which is co&ered by the main pro&ision. tcar&es out an e+ception to the main pro&ision to which it has been enacted bythe pro&iso and to no other. The proper function of a pro&iso is to e+cept anddeal with a case which would otherwise fall within the general language of themain enactment" and its effect is to confine to that case. 6here the languageof the main enactment is e+plicit and unambiguous" the pro&iso can ha&e norepercussion on the interpretation of the main enactment" so as to e+cludefrom it" by implication what clearly falls within its e+press terms. The scope ofthe pro&iso" therefore" is to car&e out an e+ception to the main enactment andit e+cludes something which otherwise would ha&e been within the rule. t hasto operate in the same field and if the language of the main enactment isclear" the pro&iso cannot be torn apart from the main enactment nor can it beused to nullify by implication what the enactment clearly says nor set at


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naught the real ob/ect of the main enactment" unless the words of the pro&isoare such that it is its necessary effect .0

(emphasis supplied

2* . T5e $a e l/ e '1 #ea$' / =a$ 1'll'=e( / A.N. Seh)al and

;rs. v. a e a& Sheora& and ;rs. 1$$2 S+77 (1 S"" !0/

=5/le / !e#p#e!/ a p#'6/$' / !5e Ha# a a Se#6/>e '1 E / ee#$

R%le$< *930 =5e#e !5e C'%#! 5el( !5a! !5e p#'6/$' !' R%le + 2 a

>a '! e appl/e( !' >' 1e# !5e e e1/! '1 #e %la# app'/ ! e ! '

e6e# p#' '!ee app'/ !e( / e@>e$$ '1 +0 ?%'!a. T5/$ C'%#!

5a# ' /'%$l #ea( !5e a/ p#'6/$/' a ( !5e p#'6/$' a ( a6e

e11e>! !' !5e #%le.

22. I *erala State %o+sin) Board and ;rs. v. a&a7riya

%otels ( Ltd. and ;rs. 1$$/ (3 S"" #,2 !5/$ C'%#! =a$ e@4

a / / =5e!5e# !5e pe#/'( '1 - ea#$ e 6/$a e( / p#'6/$' !' Se>4

!/' *3 / % (e# e#ala La ( A>?%/$/!/' A>!< *93* >'%l( e #e>:4

' e( 1#' (a!e =5e a #ee e ! =a$ e@e>%!e( '# 1#' (a!e '1

p% l/>a!/' '1 '!/1/>a!/' % (e# Se>!/' , * '1 !5e A>! a1!e# !5e

a #ee e ! =a$ e@e>%!e(. A1!e# #el / ' 9ri4hovandas %ari4

hai 9a&4oli $%p#a a ( A.N. Seh)al $%p#a !5/$ C'%#! 5el( !5a!


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1

!5e p#'6/$' $5'%l( e 5a# ' /'%$l #ea( =/!5 !5e $e>!/' . T' ?%'!e

9ri4hovandas $%p#a a$ 1'll'=e( / !5/$ ;%( e !

n Tribho&andas aribhai Tamboli &. Gu/arat Fe&enue Tribunal this*ourt held that the proper function of a pro&iso is to e+cept and dealwith a case which would otherwise fall within the general language ofthe main enactment and its effect is to be confined to that case. 6herethe language of the main enactment is e+plicit and unambiguous" the

pro&iso can ha&e no repercussion on the interpretation of the main en -actment" so as to e+clude from it" by implication what clearly falls withinits e+press terms. The scope of the pro&iso" therefore" is to car&e out ane+ception to the main enactment and it e+cludes something which oth-erwise would ha&e been within the rule. t has to operate in the samefield and if the language of the main enactment is clear" the pro&iso can-

not be torn apart from the main enactment nor can it be used to nullifyby implication what the enactment clearly says" nor set at naught thereal ob/ect of the main enactment" unless the words of the pro&iso aresuch that it is its necessary effect. n that case it was held that by read-ing the pro&iso consistent with the pro&isions of Section 88 of the )om-bay Tenancy and Agricultural Act" the ob/ect of the main pro&ision wassustained.0

(emphasis supplied

2,. I *+sh Sah)al @ ;rs. v. .". itter @ ;rs. (2000 /

S"" 32# a la (la( a(e a appl/>a!/' 1'# e6/>!/' '1 !5e !e a !

' !5e a$/$ !5a! $5e =a !e( !5e pla>e 1'# %$/ e$$ p%#p'$e$ =5/>5

=a$ '! all'=e( a$ pe# !5e p#'6/$' !' Se>!/' 2* 2 U.P. U# a

B%/l(/ $ Re %la!/' '1 Le!!/ < Re ! a ( E6/>!/' A>!< *972. T5e

C'%#! e@a / e( !5e #'le a ( p%#p'#! '1 !5e p#'6/$' a ( ' $e#6e(

This we say because the normal function of a pro&iso is toe+cept something out of the enactment or to !ualifysomething enacted therein which but for the pro&iso wouldbe within the pur&iew of the enactment. (See : Hedarnath

http://fnopenglobalpopup%28%27/ba/disp.asp','34885','1');http://fnopenglobalpopup%28%27/ba/disp.asp','34885','1');


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+

?ute >anufacturing *o. Btd. &. *ommercial Ta+ Iffice' >l%$/' < =e a #e1e# !' >a+well" nterpretation ofStatutes0 dn. 1#" 1 D " on . 18 -1 @ =5/>5 $!a!e$ !5a! /! /$ a

e e#al 1/ (/ a ( p#a>!/>e that inconsistencies can be a&oided

by applying the general rule that the words of a pro&iso are not to

be ta$en absolutely in their strict literal sense0


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*

(1 DD =. And" so far as that section itself is concerned" the pro&iso

recei&es a restricted construction: where the section confers pow-

ers" it would be contrary to the ordinary operation of a pro&iso to

gi&e it an effect which would cut down those powers beyond what

compliance with the pro&iso renders necessary.0 ep!/' !'

!5e e e#al/! '1 !5e e a>!/ pa#! $!/p%la!/ 1%#!5e# >' (/!/' $

e1'#e a >' pe!e ! C'%#! a !a:e >' / a >e '1 !5e $a e. See

/ !5e l/ 5! '1 !5e p#'6/$/' $ '1 Se>!/' *-2 '1 !5e A>!< !5e p#'6/$'

$/ pl (e1e#$ p#'$e>%!/' '1 !5e '11e (e# !/ll !5e >' (/!/' $ p#e4

$>#/ e( !5e#e/ a#e $a!/$1/e(. Bhaskaran ('e$ '! 6/e= !5e a!!e#

/ !5a! pe#$pe>!/6e =5/le %ar&an $%p#a ('e$. )e 1/ ( '%#$el6e$

/ #e$pe>!1%l a #ee e ! =/!5 !5e 6/e= / %ar&an’s >a$e ' !5/$

a$pe>!.

27. I Bhaskaran < !5/$ C'%#! #e$'l6e( !5e >' 1%$/' a$ !' !5e

pla>e '1 >' /$$/' '1 !5e '11e >e #el / %p' Se>!/' $ *77 !'


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-

*79 '1 !5e C#.P.C. B%! !5e >' 1%$/' a#/$e$ ' l /1 ' e =e#e !' !#ea!

!5e p#'6/$' a$ $!/p%la!/ !5e / #e(/e !$ '1 !5e '11e >e. O >e /! /$

5el( !5a! !5e >' (/!/' $ p#e>e(e ! 1'# !a:/ >' / a >e a#e '!

!5e / #e(/e !$ >' $!/!%!/ !5e '11e >e '1 (/$5' '%# '1 !5e >5e?%e<

!5e#e /$ ' #'' 1'# a $%>5 >' 1%$/' '# 6a %e e$$ a '%! !5e

pla>e =5e#e !5e '11e >e /$ >' /!!e(. Appl / !5e e e#al #%le

#e>' /$e( % (e# Se>!/' *77 '1 !5e C#.P.C. !5a! all '11e >e$ a#e l'4>al< !5e pla>e =5e#e !5e (/$5' '%# '>>%#$ /$ !5e pla>e 1'# >' /$4

$/' '1 !5e '11e >e 6e$!/ !5e C'%#! e@e#>/$/ !e##/!'#/al ;%#/$(/>4

!/' '6e# !5e a#ea =/!5 !5e p'=e# !' !# !5e '11e >e$. Ha6/ $a/(

!5a! =e %$! 5a$!e !' a((< !5a! / >a$e$ =5e#e !5e '11e >e % (e#

Se>!/' *,8 /$ '%! '1 !5e '11e >e$ >' /!!e( / a $/ le !#a $a>!/'

=/!5/ !5e ea / '1 Se>!/' 220 * '1 !5e C#.P.C. !5e !5e '14

1e (e# a e >5a# e( =/!5 a ( !#/e( a! ' e !#/al 1'# e6e# $%>5

'11e >e a ( a $%>5 / ?%/# '# !#/al a e >' (%>!e( a

C'%#! >' pe!e ! !' e ?%/#e / !' '# !# a '1 !5e '11e >e$ a$ p#'46/(e( Se>!/' *8- '1 !5e C'(e. S' al$'< /1 a '11e >e p% /$5a le

% (e# Se>!/' *,8 '1 !5e A>! /$ >' /!!e( a$ a pa#! '1 $/ le !#a $4


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(

a>!/' =/!5 !5e '11e >e '1 >5ea!/ a ( (/$5' e$!l / (%>/ (el/64

e# '1 p#'pe#! !5e / !e# $ '1 Se>!/' *82 * #ea( =/!5 Se>!/' $

*8- a ( 220 '1 !5e C#.P.C. $%>5 '11e >e a e !#/e( e/!5e# a! !5e

pla>e =5e#e !5e / (%>e e ! !'': pla>e '# =5e#e !5e >5e?%e 1'# 4

/ pa#! '1 !5e $a e !#a $a>!/' =a$ (/$5' '%#e( '# a! !5e pla>e

=5e#e !5e p#'pe#! =5/>5 !5e pe#$' >5ea!e( =a$ (/$5' e$!l / 4

(%>e( !' (el/6e# '# a! !5e pla>e =5e#e !5e a>>%$e( #e>e/6e( $%>5p#'pe#! . T5e$e p#'6/$/' $ a:e /! >lea# !5a! / !5e >' e#>/al

='#l( a pa#! =5' /$ >5ea!e( a ( / (%>e( !' (el/6e# p#'pe#! '

!5e a$/$ '1 a >5e?%e =5/>5 /$ (/$5' '%#e( 5a$ !5e #e e( '1 / $!/4

!%!/ p#'$e>%!/' '! ' l a! !5e pla>e =5e#e !5e >5e?%e =a$ (/$4

5' '%#e( =5/>5 a! !/ e$ a e a pla>e '!5e# !5a !5e pla>e

=5e#e !5e / (%>e e ! '# >5ea!/ !a:e$ pla>e %! al$' a! !5e pla>e

=5e#e !5e '11e >e '1 >5ea!/ =a$ >' /!!e(. T' !5a! e@!e ! !5e

p#'6/$/' $ '1 C5ap!e# KIII '1 !5e C'(e =/ll ea# #ele6a >e a ( 5elp

(e!e# / e !5e pla>e =5e#e !5e '11e >e$ >a e !#/e(.

28. )e a a! !5/$ $!a e #e1e# !' !=' '!5e# (e>/$/' $ '1 !5/$ C'%#!

=5/>5 ea# $' e #ele6a >e !' !5e ?%e$!/' !5a! 1all$ 1'# '%#


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(e!e# / a!/' . I Sadanandan Bhadran v. adhavan S+nil

*+&ar (1998) 6 SCC 514 a !='4;%( e e >5 '1 !5/$ C'%#! 5el(

!5a! >la%$e a '1 p#'6/$' !' Se>!/' *,8 ('e$ '! (/$e !/!le !5e

pa ee !' $%>>e$$/6el p#e$e ! >5e?%e 1'# pa e ! (%#/ !5e

pe#/'( '1 /!$ 6al/(/! . O ea>5 $%>5 p#e$e !a!/' '1 !5e >5e?%e a (

/!$ (/$5' '%# a 1#e$5 #/ 5! 4 a ( '! >a%$e '1 a>!/' a>>#%e$ / 5/$

1a6'%#. He a < !5e#e1'#e< =/!5'%! !a:/ p#e4e p!'# a>!/' /e@e#>/$e '1 $%>5 #/ 5! % (e# >la%$e '1 Se>!/' *,8 ' '

p#e$e !/ !5e >5e?%e $' l' a$ !5e >5e?%e /$ 6al/( 1'# pa e !.

B%! ' >e 5e /6e$ a '!/>e % (e# >la%$e '1 Se>!/' *,8 5e

1'#1e/!$ $%>5 #/ 5! 1'# / >a$e '1 1a/l%#e '1 !5e (#a=e# !' pa !5e

' e =/!5/ !5e $!/p%la!e( !/ e 5e ='%l( e l/a le 1'# !5e '11e >e

a ( !5e >a%$e '1 a>!/' 1'# p#'$e>%!/' =/ll a#/$e. T5e >'##e>! e$$

'1 !5/$ 6/e= =a$ ?%e$!/' e( / S Leathers v. S. alania77an

@ Anr. (2013) 1 SCC 177 e1'#e a e >5 >' p#/$/ '1

Ma#:a (e a!;% a ( B. S%(e#$5a Re(( < J.J. =5' #e1e##e( !5e/$$%e !' a la# e# e >5. T5e la# e# e >5 / S Leathers’s >a$e

$%p#a '6e##%le( Sadanandan Bhadran $%p#a 5'l(/ !5a!


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!5e#e =a$ ' #ea$' =5 a 1#e$5 >a%$e '1 a>!/' =/!5/ !5e

ea / '1 Se>!/' *-2 #ea( =/!5 $e>!/' *,8 $5'%l( '! e

(ee e( !' 5a6e a#/$e !' !5e >' pla/ a ! e6e# !/ e !5e >5e?%e

=a$ p#e$e !e( %! (/$5' '%#e( a ( !5e (#a=e# '1 >5e?%e 1a/le( !'

pa !5e a '% ! =/!5/ !5e $!/p%la!e( pe#/'( / !e# $ '1 p#'6/$' !'

*,8. T5/$ C'%#! $a/(

n the result" we o&errule the decision in Sadanandan)hadranEs case (supra and hold that prosecution basedupon second or successi&e dishonour of the che

Sc Judgement on Jurisdiction Under 138 of n.i Act

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