M. Ramaiah vs Ramanika Silks (Private) Limited, Cochin

The Court

The petitioner in these revisions questioned the order of the learned XV Additional Chief Metropolitan Magistrate, Bangalore discharging the accused/respondent u/s 227 read with Section 203 of the Cr. P.C. which was registered for the offence u/s 138 of the Negotiable Instruments Act in C.C. Nos. 20866 of 1997 and 20591 and 20439 of 1998.

The brief facts are as follows:

The respondent herein M/s. Ramanika Silks (Private) Limited has issued cheques in favour of M/s. Mandoth Syndicate for various amounts on different dates. When the cheques came to be presented, it was dishonoured. Thereafter, the petitioner got issued legal notice. As the amounts were not paid, he presented a complaint. The learned Additional Chief Metropolitan Magistrate, Bangalore, after recording the sworn statement took cognizance of the offence u/s 138 of the Negotiable Instruments Act in C.C. No. 20866 of 1997 on 5-7-1999, in C.C. No. 20439 of 1998 on 14-4-1998 and in C.C. No. 20591 of 1998 on 25-3-1998 and ordered for issue of summons. Later on, the respondent/accused appeared and filed an application for discharge, The learned Chief Metropolitan Magistrate, Bangalore considering the submissions made, dismissed the complaint as not maintainable and discharged the accused, though he had taken cognizance of the offence earlier. It is, as against the order of discharge of the respondent, the petitioner has come up with these revision petitions.

The learned Counsel Sri M. Rambhat for the petitioner vehemently contended that when once cognizance is taken, there was no reason for the learned Chief Metropolitan Magistrate to discharge the accused on the ground that there are no prima facie case as the same being a matter of evidence that too for the offence u/s 138 of the Negotiable Instruments Act. Secondly contended that the findings of the learned Chief Metropolitan Magistrate holding that the GPA holder has no authority to file a complaint is also erroneous. Therefore, prayed to set aside the order of discharge and to direct the learned Chief Metropolitan Magistrate to take the same on his file and to proceed in accordance with law.

The learned Counsel for the respondent in these revisions justified the order of the learned Chief Metropolitan Magistrate in discharging the respondent and also contended that there is no valid notice as contemplated u/s 138-B of the Negotiable Instruments Act. Therefore, even on this ground also, discharge is proper and prayed to dismiss these revisions.

On going through the impugned order of the learned XV Additional Chief Metropolitan Magistrate, Bangalore, it reveals that he has acted u/s 227 of the Cr. P.C. and discharged the accused person. Section 227 of the Cr. P.C. confers power on the Sessions Judge for discharge of the accused but the learned Chief Metropolitan Magistrate without applying his mind has proceeded to pass the impugned order, Secondly, it shows that the learned Judge has also come to the wrong conclusion that the GPA holder has no right to present the complaint. In this regard, while dealing with the similar provision and considering the powers of the GPA holder, the Kerala High Court in the decision of Pandalai v. Jacob C. Alexander and Anr., has observed that: "the power of attorney holder of a payee or a holder in due course can make a complaint u/s 142 of the Negotiable Instruments Act". In this view of the matter, the finding of the Additional Chief Metropolitan Magistrate is not sustainable and the same is liable to be interfered with. Therefore, the order of discharge of the respondent is not sustainable.

For the foregoing reasons, all these revisions are allowed restoring on its original file and the learned Chief Metropolitan Magistrate is directed to proceed in accordance with law. Liberty is granted to the respondent to take up all such legal contentions and defences that are available and also can seek for discharge if the Court finds that there is no prima facie case.

Accordingly, all these revision petitions are allowed.