Case Note & Summary
The petitioner, Smt. Vijaya, filed a criminal petition under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of proceedings in C.C. No. 67/2021 pending before the Court of Civil Judge and JMFC, Yelburga, and related orders. The complaint was filed by respondent No. 1, Shekharappa, alleging that the petitioner had borrowed Rs. 2 crores in cash in 2000 rupee denomination and issued a cheque which was dishonoured. The High Court observed that the transaction was strange and improbable, as lending such a large amount in cash was unusual. The court noted that the complaint was filed beyond the limitation period of 30 days from the cause of action, which arose on 01.06.2021 when the cheque was dishonoured. The complaint was filed on 10.01.2022, which was clearly barred by limitation. Additionally, the court found that the complaint did not disclose a prima facie case and was an abuse of process of law. The court quashed the proceedings, including the order dated 10.01.2022 and the public auction notice dated 25.01.2022, and allowed the petition.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Limitation - Complaint filed beyond 30 days from date of cause of action - Held that the complaint was barred by limitation as the cause of action arose on 01.06.2021 and the complaint was filed on 10.01.2022, beyond the prescribed period (Paras 5-7).
B) Criminal Procedure Code - Inherent Powers - Section 482 - Quashing of Proceedings - Abuse of process - Held that the proceedings were an abuse of process of court as the complaint did not disclose a prima facie case and was filed with malafide intentions (Paras 8-10).
C) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Prima Facie Case - Cash loan of Rs. 2 crores in 2000 rupee denomination - Held that the transaction was highly improbable and lacked credibility, thus no prima facie case was made out (Paras 3-4).
Issue of Consideration
Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 were barred by limitation and lacked a prima facie case, warranting quashing under Section 482 of the Code of Criminal Procedure, 1973.
Final Decision
The petition is allowed. The proceedings in C.C. No. 67/2021 pending before the Court of Civil Judge and JMFC, Yelburga, and the order dated 10.01.2022 in Crl.Misc.No.313/2021, and the public auction publication dated 25.01.2022 are quashed.
Law Points
- Limitation under Section 138 NI Act
- Prima facie case for dishonour of cheque
- Inherent powers under Section 482 CrPC
- Cash loan of Rs. 2 crores in 2000 rupee denomination
Case Details
2022 LawText (KAR) (02) 7
Criminal Petition No.100261/2022
V.M. Sheelavant, Mrutyunjaya S. Hallikeri for petitioner; B.V. Somapur for R1; R.K. Kulkarni for R2
Smt. Vijaya W/o Shiddalingayya Hiremath (Vijaya D/o. Shadaksharappa)
Shekharappa S/o Shivappa Madinur and The Municipal Commissioner, City Municipal Council, Koppal
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Nature of Litigation
Criminal petition under Section 482 CrPC seeking quashing of proceedings in a cheque dishonour case under Section 138 NI Act.
Remedy Sought
Petitioner sought direction to hear criminal revision petition on merits, stay of order dated 01.06.2021, quashing of order dated 10.01.2022, and quashing of public auction publication dated 25.01.2022.
Filing Reason
Petitioner claimed that the complaint was barred by limitation and lacked prima facie case, and that the proceedings were an abuse of process.
Previous Decisions
The trial court had taken cognizance and issued process; the revision petition was pending.
Issues
Whether the complaint under Section 138 NI Act was barred by limitation?
Whether the complaint disclosed a prima facie case?
Whether the proceedings warranted quashing under Section 482 CrPC?
Submissions/Arguments
Petitioner argued that the complaint was filed beyond the limitation period of 30 days from the cause of action.
Petitioner argued that the transaction of Rs. 2 crores in cash was improbable and lacked credibility.
Respondent No.1 argued that the complaint was maintainable and the cheque was dishonoured.
Ratio Decidendi
A complaint under Section 138 of the Negotiable Instruments Act, 1881 must be filed within 30 days from the date of cause of action. If the complaint is filed beyond the limitation period and the transaction is highly improbable, the proceedings are an abuse of process and liable to be quashed under Section 482 of the Code of Criminal Procedure, 1973.
Judgment Excerpts
A strange transaction is brought before this Court in which the complainant claims to have lent to the accused a sum of rupees two crores by cash in two thousand rupees denomination and the cheque alleged to have issued by the accused is dishonoured.
The complaint is barred by limitation as the cause of action arose on 01.06.2021 and the complaint was filed on 10.01.2022.
The proceedings are an abuse of process of court and are quashed.
Procedural History
The complaint was filed on 10.01.2022 before the Court of Civil Judge and JMFC, Yelburga, in C.C. No. 67/2021. The trial court took cognizance and issued process. The petitioner filed a criminal revision petition (Crl.R.P.No.48/2021) which was pending. The petitioner then filed this petition under Section 482 CrPC seeking quashing of the proceedings and related orders.
Acts & Sections
- Negotiable Instruments Act, 1881: 138
- Code of Criminal Procedure, 1973: 482
