High Court of Bombay at Goa Allows Petition Under Article 227 and Section 482 CrPC Against Rejection of Application Under Section 145(2) of Negotiable Instruments Act — Right to Cross-Examine Complainant's Witnesses Cannot Be Denied

High Court: Bombay High Court Bench: GOA In Favour of Accused
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Case Note & Summary

The petitioner, Kishor Biradmal Bhandari, filed a Criminal Writ Petition under Article 227 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973, challenging the order dated 21.02.2023 passed by the learned Judicial Magistrate First Class 'A' Court, Vasco-Da-Gama, rejecting his application under Section 145(2) of the Negotiable Instruments Act, 1881 (NI Act) in Criminal Case No. OA/244/OA/NIA/2019/A. The respondent, Chandrakant Krishna Gawas, had filed a complaint under Section 138 of the NI Act alleging that the petitioner, as a facilitator for obtaining a loan, collected a commission of Rs. 14,00,000/- but failed to arrange the loan and issued a cheque of Rs. 15,47,000/- which was dishonoured. The petitioner sought to cross-examine the complainant's witnesses to challenge the evidence led by the complainant. The Magistrate rejected the application, holding that the petitioner had not shown sufficient grounds. The High Court held that the right to cross-examination under Section 145(2) of the NI Act is a statutory right and cannot be denied arbitrarily. The impugned order was set aside and the matter was remanded to the Magistrate for fresh consideration, directing that the petitioner be permitted to cross-examine the complainant's witnesses. The court emphasized that the accused must be given a fair opportunity to defend himself.

Headnote

A) Criminal Procedure - Negotiable Instruments Act - Section 145(2) - Right to Cross-Examine - The accused has a statutory right to cross-examine the complainant's witnesses under Section 145(2) of the Negotiable Instruments Act, 1881. The Magistrate's rejection of the application without valid reasons amounts to denial of fair trial. Held that the order rejecting the application is set aside and the matter is remanded for fresh consideration (Paras 1-10).

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Issue of Consideration

Whether the learned Magistrate was justified in rejecting the petitioner's application under Section 145(2) of the Negotiable Instruments Act, 1881 seeking permission to cross-examine the complainant's witnesses, thereby denying the accused a fair opportunity to defend himself.

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Final Decision

The High Court allowed the petition, set aside the impugned order dated 21.02.2023, and remanded the matter to the learned Judicial Magistrate First Class 'A' Court, Vasco-Da-Gama, for fresh consideration. The Magistrate was directed to permit the petitioner to cross-examine the complainant's witnesses and dispose of the application in accordance with law.

Law Points

  • Right to cross-examination under Section 145(2) of Negotiable Instruments Act
  • 1881
  • Inherent powers under Section 482 CrPC
  • Supervisory jurisdiction under Article 227 of Constitution of India
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Case Details

2023 LawText (BOM) (08) 154

Criminal Writ Petition No. 54 of 2023

2023-08-23

Prakash D. Naik, J

2023:BHC-GOA:1487

Dinesh Naik, Ms. V. Shivolkar for Petitioner; Sudin Usgaonkar, Shukr Usgaonkar for Respondent

Kishor Biradmal Bhandari

Chandrakant Krishna Gawas

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Nature of Litigation

Criminal writ petition challenging rejection of application under Section 145(2) of Negotiable Instruments Act, 1881

Remedy Sought

Petitioner sought to set aside the order dated 21.02.2023 rejecting his application for permission to cross-examine the complainant's witnesses

Filing Reason

The petitioner's application under Section 145(2) of the NI Act was rejected by the learned Magistrate, denying him the right to cross-examine the complainant's witnesses

Previous Decisions

The learned Judicial Magistrate First Class 'A' Court, Vasco-Da-Gama, rejected the application under Section 145(2) of the NI Act vide order dated 21.02.2023

Issues

Whether the learned Magistrate was justified in rejecting the petitioner's application under Section 145(2) of the Negotiable Instruments Act, 1881 seeking permission to cross-examine the complainant's witnesses

Submissions/Arguments

Petitioner argued that the right to cross-examine under Section 145(2) of the NI Act is a statutory right and cannot be denied without valid reasons Respondent argued that the application was rightly rejected as the petitioner had not shown sufficient grounds

Ratio Decidendi

The right to cross-examine the complainant's witnesses under Section 145(2) of the Negotiable Instruments Act, 1881 is a statutory right of the accused. Denial of such right without valid reasons amounts to violation of principles of natural justice and fair trial. The Magistrate must exercise discretion judiciously and not reject such applications arbitrarily.

Judgment Excerpts

The petitioner has invoked jurisdiction of this Court under Article 227 of the Constitution of India and inherent powers of this Court under Section 482 of Code of Criminal Procedure. The petitioner takes exception to order dated 21.02.2023 passed by the learned Judicial Magistrate First Class 'A' Court, Vasco-Da-Gama below Exhibit 45 in Criminal Case No.OA/244/OA/NIA/2019/A rejecting the petitioner’s application under Section 145(2) of the Negotiable Instruments Act.

Procedural History

The respondent filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 before the Court of learned Judicial Magistrate First Class, Vasco. During the trial, the petitioner filed an application under Section 145(2) of the NI Act seeking permission to cross-examine the complainant's witnesses. The learned Magistrate rejected the application vide order dated 21.02.2023. The petitioner then filed the present Criminal Writ Petition under Article 227 of the Constitution of India and Section 482 of the Code of Criminal Procedure, 1973.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138, 145(2)
  • Code of Criminal Procedure, 1973: 482
  • Constitution of India: Article 227
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