Bombay High Court at Goa Allows Criminal Miscellaneous Application in Cheque Dishonour Case — Restores Trial Court's Order Condoning Delay of 13 Days in Filing Complaint Under Section 138 of Negotiable Instruments Act, 1881. The Sessions Judge's Revision Order Set Aside as It Improperly Interfered with Discretion of Trial Court in Condoning Delay.

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

The case involves a criminal miscellaneous application filed by the original accused (Mr. R.K. Chawla and M/s. Goa Food & Pharma (P) Ltd.) challenging the judgment and order of the Sessions Judge, North Goa at Panaji, in Criminal Revision Application No. 35 of 2000. The Sessions Judge had set aside the trial court's order condoning the delay in filing a complaint under Section 138 of the Negotiable Instruments Act, 1881, and remanded the matter for fresh consideration. The respondent No. 1, M/s. Goa Antibiotics & Pharmaceuticals Ltd., a Government of Goa undertaking, had filed the complaint alleging that the accused placed orders for pharmaceutical goods, which were supplied, and in payment, the accused issued a cheque along with a covering letter dated 19th September 1998. The cheque was dishonoured, leading to the complaint. The complaint was filed with a delay of 13 days, and the trial court condoned the delay, finding sufficient cause. The Sessions Judge, in revision, set aside that order and remanded the matter. The High Court, per V.M. Kanade, J., held that the Sessions Judge erred in interfering with the trial court's discretion, as the delay was only 13 days and the trial court had given cogent reasons. The High Court allowed the application, set aside the Sessions Judge's order, and restored the trial court's order condoning the delay, directing the trial court to proceed with the complaint on merits.

Headnote

A) Criminal Procedure - Condonation of Delay - Section 5 of Limitation Act, 1963 - Section 142 of Negotiable Instruments Act, 1881 - The court considered whether delay in filing a complaint under Section 138 of the NI Act can be condoned - Held that the trial court had correctly exercised discretion in condoning the delay of 13 days as sufficient cause was shown, and the Sessions Judge erred in interfering with that order without proper reasoning (Paras 2-6).

B) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Complaint - Limitation - The complainant alleged that the accused issued a cheque for payment of goods supplied, which was dishonoured - The complaint was filed with a delay of 13 days, and the trial court condoned the delay - The High Court restored the trial court's order and directed the trial court to proceed with the complaint on merits (Paras 2-6).

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Issue of Consideration

Whether the Sessions Judge was justified in setting aside the order of the trial court condoning the delay in filing the complaint under Section 138 of the Negotiable Instruments Act, 1881, and remanding the matter for fresh consideration.

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Final Decision

The High Court allowed the criminal miscellaneous application, set aside the order of the Sessions Judge dated 6th July 2005 in Criminal Revision Application No. 35 of 2000, and restored the order of the trial court condoning the delay. The trial court was directed to proceed with the complaint on merits in accordance with law.

Law Points

  • Condonation of delay
  • Section 5 of Limitation Act
  • Section 142 of Negotiable Instruments Act
  • 1881
  • Sufficient cause
  • Liberal approach in condonation
  • Delay of 13 days
  • Criminal complaint
  • Remand for fresh disposal
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Case Details

2005 LawText (BOM) (07) 104

Criminal Miscellaneous Application No. 102 of 2004

2005-07-06

V. M. Kanade

Mr. S. M. Singbal for Applicants, Mr. J. P. D'Souza for Respondent No. 1, Mr. S. N. Sardessai, Public Prosecutor for Respondent No. 2

Mr. R.K. Chawla and M/s. Goa Food & Pharma (P) Ltd.

M/s. Goa Antibiotics & Pharmaceuticals Ltd. and State of Goa

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Nature of Litigation

Criminal miscellaneous application challenging the order of Sessions Judge in revision which set aside the trial court's order condoning delay in filing complaint under Section 138 of Negotiable Instruments Act.

Remedy Sought

Applicants (original accused) sought to set aside the Sessions Judge's order remanding the matter and to restore the trial court's order condoning the delay.

Filing Reason

The complaint under Section 138 of NI Act was filed with a delay of 13 days; the trial court condoned the delay, but the Sessions Judge in revision set aside that order and remanded the matter.

Previous Decisions

Trial court condoned delay; Sessions Judge in Criminal Revision Application No. 35 of 2000 set aside that order and remanded the matter for fresh disposal.

Issues

Whether the Sessions Judge was justified in interfering with the trial court's discretion in condoning the delay of 13 days in filing the complaint under Section 138 of the Negotiable Instruments Act, 1881.

Submissions/Arguments

Applicants argued that the Sessions Judge erred in setting aside the trial court's order condoning the delay as the delay was only 13 days and sufficient cause was shown. Respondent No. 1 supported the Sessions Judge's order.

Ratio Decidendi

The discretion of the trial court in condoning delay under Section 5 of the Limitation Act should not be lightly interfered with in revision, especially when the delay is short and sufficient cause is shown. The Sessions Judge erred in setting aside the trial court's order without proper reasoning.

Judgment Excerpts

The Applicants are the Original Accused. The Applicants are challenging the Judgment and Order passed by the Sessions Judge, North Goa at Panaji in Criminal Revision Application No. 35 of 2000 whereby the Sessions Judge remanded the matter to the trial Court with a direction to dispose of the criminal complaint and decide the application of condonation first and thereafter to proceed with the matter in accordance with law. The trial Court had condoned the delay and had given cogent reasons for condoning the delay. The Sessions Judge, in my view, erred in setting aside the said order and remanding the matter back to the trial Court.

Procedural History

The complainant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, with a delay of 13 days. The trial court condoned the delay. The accused filed a criminal revision before the Sessions Judge, who set aside the condonation order and remanded the matter. The accused then filed the present criminal miscellaneous application before the High Court.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138, 142
  • Limitation Act, 1963: 5
  • Code of Criminal Procedure, 1973: 397, 401
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