Bombay High Court Allows Revision Application in Negotiable Instruments Act Case - Holds Amended Provisions Apply Retrospectively to Pending Complaints. The court ruled that procedural amendments under the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 apply to all pending complaints under Section 138 of the Negotiable Instruments Act, 1881, regardless of the date of filing.

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

The case involves a Criminal Revision Application filed by M/s. Indraprastha Holdings Ltd., the complainant in a complaint under Section 138 of the Negotiable Instruments Act, 1881, against the order of the Additional Sessions Judge. The complaint was filed in October 2001 in the Court of the Additional Chief Metropolitan Magistrate, Mumbai. Process was issued, and the complainant filed an affidavit of evidence on 06.05.2004. The accused (Respondent No.1) filed an application under Section 145(2) of the Act, which was rejected on 26.10.2004. The accused preferred a revision, and the Additional Sessions Judge allowed it on 12.04.2005, holding that the Amending Act of 2002, which came into force on 06.02.2003, applies prospectively and not to complaints filed before that date. The complainant challenged this order. The High Court examined the issue of whether the amendments, particularly Section 145, apply to pending complaints. The court noted that the amendments are procedural in nature and intended to expedite trials. Relying on the principle that procedural laws apply retrospectively unless expressly made prospective, the court held that the Amending Act applies to all pending complaints under Section 138, including those filed before 06.02.2003. The court set aside the order of the Additional Sessions Judge and restored the trial court's order rejecting the application under Section 145(2). The revision application was allowed.

Headnote

A) Criminal Procedure - Negotiable Instruments Act - Retrospective Application of Amendments - Sections 138, 145, Negotiable Instruments Act, 1881 read with Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 - The question was whether the amended provisions, particularly Section 145, apply to complaints pending on the date the Amending Act came into force (06.02.2003). The court held that the amendments are procedural and apply retrospectively to all pending complaints, including those filed before the amendment. The learned Additional Sessions Judge erred in holding that the amendments apply only prospectively. (Paras 2, 4-5)

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Issue of Consideration

Whether the provisions of the Negotiable Instruments Act, 1881 as amended by the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 are applicable to complaints under Section 138 of the said Act which were pending on the date on which the Amending Act came into force.

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Final Decision

The High Court allowed the revision application, set aside the order of the Additional Sessions Judge dated 12.04.2005, and restored the order of the trial court dated 26.10.2004 rejecting the application under Section 145(2). The court held that the amended provisions of the Negotiable Instruments Act, 1881 apply to all pending complaints under Section 138, including those filed before the Amending Act came into force.

Law Points

  • Retrospective application of procedural amendments
  • Applicability of amended Section 145 to pending complaints
  • Negotiable Instruments Act
  • 1881
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Case Details

2005 LawText (BOM) (09) 27

Criminal Revision Application No.130 of 2005

2005-09-21

A. S. Oka, J.

Sanjay Rairkar i/by A.H.H.Ponda for the Applicant, S.N.Chimade for the Respondent No.1, Ms M.H. Mhatre, A.P.P. for the Respondent No.2

M/s. Indraprastha Holdings Ltd.

Shri Vijay J. Shah & Anr.

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Nature of Litigation

Criminal Revision Application challenging the order of the Additional Sessions Judge which held that the Amending Act of 2002 applies prospectively.

Remedy Sought

The applicant/complainant sought to set aside the order of the Additional Sessions Judge and restore the trial court's order rejecting the application under Section 145(2).

Filing Reason

The Additional Sessions Judge allowed the revision of the accused and held that the amended provisions of the Negotiable Instruments Act apply only prospectively, thereby directing the trial court to follow the pre-amendment procedure.

Previous Decisions

The trial court rejected the accused's application under Section 145(2) on 26.10.2004. The Additional Sessions Judge allowed the revision on 12.04.2005, setting aside that order.

Issues

Whether the provisions of the Negotiable Instruments Act, 1881 as amended by the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 are applicable to complaints under Section 138 pending on the date the Amending Act came into force.

Submissions/Arguments

The applicant argued that the amendments are procedural and apply retrospectively to pending complaints. The respondent argued that the amendments apply only prospectively as the complaint was filed before the Amending Act came into force.

Ratio Decidendi

Procedural amendments to the Negotiable Instruments Act, 1881, particularly Section 145, apply retrospectively to all pending complaints under Section 138, as they are procedural in nature and intended to expedite trials, unless expressly made prospective.

Judgment Excerpts

The question which arises for consideration in this Revision Application is whether the provisions of the Negotiable Instruments Act, 1881 as amended by the Negotiable Instruments (Amendment And Miscellaneous Provisions) Act, 2002 are applicable to the complaints under section 138 of the said Act of 1881 which were pending on the date on which the Amending Act came into force.

Procedural History

The complaint under Section 138 was filed in October 2001. Process was issued. On 06.05.2004, the complainant filed an affidavit of evidence. The accused filed an application under Section 145(2) which was rejected on 26.10.2004. The accused filed a revision, which was allowed by the Additional Sessions Judge on 12.04.2005. The complainant filed the present revision on 25.07.2005, and judgment was delivered on 21.09.2005.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138, 145, 145(2)
  • Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002:
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