High Court of Karnataka Dismisses Petition to Quash Order in Negotiable Instruments Act Case — Evidence by Affidavit Permitted Under Section 145. The court held that Section 145 of the NI Act allows evidence by affidavit and marking of documents at sworn statement stage, and the trial court's order was valid.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
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Case Note & Summary

The petitioner, Smt. Devika Veeranna, filed a criminal petition under Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.) before the High Court of Karnataka, Bengaluru, seeking to quash an order dated 14.06.2018 passed by the Court of XXIV Additional Small Cause Judge and XXII Additional Chief Metropolitan Magistrate, Bengaluru, in C.C. No.949/2018. The impugned order rejected a memo filed by the petitioner. The background of the case involves a complaint under the Negotiable Instruments Act, 1881 (NI Act) filed by the respondent, M/s Measurez, a partnership firm represented by its partner Sri D H Kiran, against the petitioner. After the accused (petitioner) appeared and pleaded, the trial court posted the case for cross-examination of PW-1 on an application filed under Section 145(2) of the NI Act by the accused. The petitioner's counsel argued that the trial court had proceeded with evidence by way of affidavit and marked documents at the time of sworn statement itself, which should not have been done; instead, the court should have insisted on a fresh affidavit and marking of documents after the accused's appearance. The High Court, after hearing the petitioner's counsel and perusing the records, examined Section 145 of the NI Act, which deals with evidence on affidavit. The court noted that Section 145 of the NI Act permits the complainant to give evidence by affidavit and that documents can be marked at the stage of sworn statement. The court found that the trial court's procedure was in accordance with law and that there was no ground to quash the order. Consequently, the High Court dismissed the criminal petition, upholding the trial court's order.

Headnote

A) Criminal Procedure - Quashing of Order - Section 482 Cr.P.C. - Negotiable Instruments Act, 1881 - Section 145 - Evidence on Affidavit - The petitioner sought quashing of trial court order dated 14.06.2018 in CC No.949/2018, which allowed evidence by affidavit and marking of documents at sworn statement stage. The High Court held that Section 145 of the NI Act permits evidence by affidavit and the trial court's procedure was valid. The petition was dismissed. (Paras 2-4)

B) Negotiable Instruments Act - Evidence on Affidavit - Section 145 - Procedure - The court clarified that under Section 145 of the Negotiable Instruments Act, 1881, the complainant can give evidence by affidavit and documents can be marked at the stage of sworn statement. The trial court's order was in accordance with law. (Paras 3-4)

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Issue of Consideration

Whether the trial court erred in proceeding with evidence by way of affidavit and marking documents at the stage of sworn statement before the accused appeared, and whether such order should be quashed under Section 482 Cr.P.C.

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Final Decision

The High Court dismissed the criminal petition, holding that Section 145 of the Negotiable Instruments Act, 1881 permits evidence by affidavit and the trial court's procedure was in accordance with law. The order dated 14.06.2018 in CC No.949/2018 was upheld.

Law Points

  • Section 145 of Negotiable Instruments Act
  • 1881 permits evidence by affidavit
  • Section 482 Cr.P.C. inherent powers
  • procedure for trial of NI Act cases
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Case Details

2018 LawText (KAR) (07) 54

CRL.P. NO.4760/2018

2018-07-02

K. N. Phaneendra

Sri. Sharath S. Gowda

Smt. Devika Veeranna

M/s Measurez, Partnership Firm, Rep. by its Partner, Sri D H Kiran

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Nature of Litigation

Criminal petition under Section 482 Cr.P.C. seeking quashing of an order passed by the trial court in a complaint under the Negotiable Instruments Act, 1881.

Remedy Sought

The petitioner sought quashing of the order dated 14.06.2018 passed in CC No.949/2018 by the Court of XXIV Additional Small Cause Judge and XXII Additional Chief Metropolitan Magistrate, Bengaluru, which rejected a memo filed by the petitioner.

Filing Reason

The petitioner contended that the trial court erred in proceeding with evidence by way of affidavit and marking documents at the stage of sworn statement before the accused appeared, instead of insisting on a fresh affidavit after appearance.

Previous Decisions

The trial court had posted the case for cross-examination of PW-1 on an application under Section 145(2) of the NI Act after the accused appeared and pleaded.

Issues

Whether the trial court's order allowing evidence by affidavit and marking documents at sworn statement stage is valid under Section 145 of the Negotiable Instruments Act, 1881. Whether the impugned order should be quashed under Section 482 Cr.P.C.

Submissions/Arguments

The petitioner's counsel argued that the trial court should not have proceeded with evidence by affidavit and marking documents at the sworn statement stage; it should have insisted on a fresh affidavit after the accused's appearance.

Ratio Decidendi

Section 145 of the Negotiable Instruments Act, 1881 allows the complainant to give evidence by affidavit and documents can be marked at the stage of sworn statement. The trial court's order proceeding with evidence by affidavit was valid and not liable to be quashed under Section 482 Cr.P.C.

Judgment Excerpts

Section 145 of the Negotiable Instruments Act - Evidence on affidavit, is the answer to the ground raised. The learned Trial Judge after appearance of the accused and recording his plea, has posted the case for cross examination of PW-1 on the application filed u/s.145(2) of the Negotiable Instruments Act, by the accused.

Procedural History

The respondent filed a complaint under the Negotiable Instruments Act, 1881, which was registered as CC No.949/2018 before the Court of XXIV Additional Small Cause Judge and XXII Additional Chief Metropolitan Magistrate, Bengaluru. After the accused appeared and pleaded, the trial court posted the case for cross-examination of PW-1 on an application under Section 145(2) of the NI Act. The petitioner filed a memo which was rejected by the trial court on 14.06.2018. The petitioner then filed this criminal petition under Section 482 Cr.P.C. before the High Court of Karnataka.

Acts & Sections

  • Negotiable Instruments Act, 1881: 145, 145(2)
  • Code of Criminal Procedure, 1973: 482
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