Case Note & Summary
The petitioner, a business entity, filed a criminal complaint against the respondent alleging defamation under Section 500 of the Indian Penal Code, 1860. The complaint stated that the respondent issued a cheque to the petitioner which was dishonoured due to insufficient funds, thereby causing defamation to the petitioner. The learned 1st Adhoc Additional Sessions Judge, Jalgaon, in Criminal Revision Application No.289/2002, quashed the process issued under Section 500 IPC, reasoning that the remedy for dishonour of cheque lies under Section 138 of the Negotiable Instruments Act, 1881, and not under defamation. The petitioner challenged this order before the Bombay High Court. The High Court heard arguments from both sides. The court observed that the act of issuing a cheque without sufficient funds can amount to defamation if it harms the reputation of the complainant. The court held that the proceedings under Section 500 IPC are not barred merely because a remedy under Section 138 of the NI Act exists. The quashing of process by the Sessions Court was therefore improper. The High Court allowed the writ petition, set aside the order of the Sessions Court, and restored the process under Section 500 IPC against the respondent.
Headnote
A) Criminal Law - Defamation - Section 500 Indian Penal Code, 1860 - Quashing of Process - Complaint alleged that respondent issued a cheque without sufficient funds, causing defamation - Sessions Court quashed process holding that remedy lies under Section 138 of Negotiable Instruments Act - High Court held that proceedings under Section 500 IPC are maintainable as the act of issuing a cheque without funds can constitute defamation, and quashing was improper - Petition allowed, process restored (Paras 2-4).
Issue of Consideration
Whether the quashing of process under Section 500 IPC by the Sessions Court was justified when the complaint alleged defamation by issuance of a cheque without sufficient funds, and whether such proceedings are maintainable despite the existence of proceedings under Section 138 of the Negotiable Instruments Act.
Final Decision
The High Court allowed the writ petition, set aside the order dated 25.8.2003 passed by the learned 1st Adhoc Additional Sessions Judge, Jalgaon in Criminal Revision Application No.289/2002, and restored the process under Section 500 of the Indian Penal Code against the respondent.
Law Points
- Defamation under Section 500 IPC
- Dishonour of cheque under Section 138 NI Act
- Quashing of criminal process
- Maintainability of separate proceedings
Case Details
2013 LawText (BOM) (06) 14
Criminal Writ Petition No.471 of 2003
Shri K.C. Sant for petitioner, Shri S.K. Tambe APP for respondent-state, Shri A.G. Talhar for respondent no.2
The Indian Seeds and AgriHorticultural Farm, 15, 1st Floor, Bhikamchand Jain Market, Jalgaon, District Jalgaon, through its Proprietor Mr. Brajo Sunder Banerjee
1. The State of Maharashtra, 2. Dr. Ramesh B. Chaudhary
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Nature of Litigation
Criminal writ petition challenging the quashing of process under Section 500 IPC by the Sessions Court.
Remedy Sought
Petitioner sought restoration of process under Section 500 IPC against the respondent.
Filing Reason
The Sessions Court quashed the process issued under Section 500 IPC, holding that the remedy lies under Section 138 of the Negotiable Instruments Act.
Previous Decisions
The learned 1st Adhoc Additional Sessions Judge, Jalgaon, in Criminal Revision Application No.289/2002, quashed the process under Section 500 IPC.
Issues
Whether the quashing of process under Section 500 IPC by the Sessions Court was justified.
Whether proceedings under Section 500 IPC are maintainable despite the existence of a remedy under Section 138 of the Negotiable Instruments Act.
Submissions/Arguments
Petitioner argued that the act of issuing a cheque without sufficient funds amounts to defamation and the quashing was improper.
Respondent argued that the remedy for dishonour of cheque lies under Section 138 of the NI Act, not under defamation.
Ratio Decidendi
The act of issuing a cheque without sufficient funds can constitute defamation under Section 500 IPC, and proceedings under that section are not barred merely because a remedy under Section 138 of the Negotiable Instruments Act exists. The quashing of process by the Sessions Court was therefore improper.
Judgment Excerpts
By this petition, the petitioner original complainant questioned the judgment and order dated 25.8.2003 passed by learned 1st Adhoc Additional Sessions Judge, Jalgaon in Criminal Revision Application No.289/2002, whereby the learned 1st Adhoc Additional Sessions Judge, Jalgaon was pleased to quash the process issued under section 500 of Indian Penal Code, against the respondent accused.
Procedural History
The petitioner filed a complaint under Section 500 IPC. The Magistrate issued process. The respondent filed Criminal Revision Application No.289/2002 before the Sessions Court, which quashed the process. The petitioner then filed Criminal Writ Petition No.471 of 2003 before the Bombay High Court.
Acts & Sections
- Indian Penal Code, 1860: 500
- Negotiable Instruments Act, 1881: 138
