High Court of Bombay at Goa Allows Writ Petition for Cross-Examination in Negotiable Instruments Act Case — Court Finds Sufficient Grounds for Defence.

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

The dispute arose from a criminal writ petition filed by the petitioner against the respondent, a cooperative credit society, regarding an order passed by the Judicial Magistrate First Class rejecting the petitioner's application to cross-examine the complainant in a case under Section 138 of the Negotiable Instruments Act, 1881. The respondent alleged that the petitioner defaulted on a loan of Rs. 45,00,000 and issued a cheque for Rs. 24,48,000 that was dishonored. The petitioner contested the rejection of her application under Section 145(2) of the N.I. Act, asserting that she had disclosed sufficient probable defences. The Trial Court had dismissed her application, leading to a revision application that was also rejected. The petitioner argued that the Trial Court did not appreciate the grounds of her defence adequately. The respondent contended that the application was vague and did not demonstrate any probable defence. The court analyzed the legal provisions under Section 145(2) of the N.I. Act, emphasizing the accused's right to cross-examine the complainant if they demonstrate probable grounds for defence. The court found that the petitioner had raised valid points regarding the cheque's enforceability and the alleged misuse of the cheque. Ultimately, the court allowed the writ petition, ruling that the petitioner was entitled to cross-examine the complainant and his witnesses, thereby reversing the lower courts' decisions.

Headnote

A) Negotiable Instruments Act - Cross-Examination Rights - Right to Cross-Examine Complainant - Negotiable Instruments Act, 1881, Section 145(2) - The court held that the petitioner demonstrated sufficient probable grounds for defence, warranting the right to cross-examine the complainant and his witnesses. The Trial Court's rejection of the application was found to be erroneous as it failed to appreciate the merits of the defence presented (Paras 13-14).

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Issue of Consideration

Whether the petitioner was entitled to cross-examine the complainant under Section 145(2) of the Negotiable Instruments Act, 1881.

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Final Decision

The High Court allowed the writ petition, ruling that the petitioner was entitled to cross-examine the complainant and his witnesses, thereby reversing the lower courts' decisions.

Law Points

  • Cross-examination rights
  • Negotiable Instruments Act
  • 1881
  • Section 145(2)
  • probable defence
  • judicial discretion
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Case Details

2026 LawText (BOM) (09) 104

Criminal Writ Petition No. 61 of 2025

2026-09-11

S. G. Chapalgaonkar

Mr. Vibhav Amonkar, Mr. Omkar Bhave, Mr. Jatin Ramaiya, Mr. Omkar Parab

Mrs. Kamal Nilkanth Naik

VPK Urban Co-operative Credit Society

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Nature of Litigation

Criminal writ petition challenging the rejection of an application for cross-examination.

Remedy Sought

Petitioner sought permission to cross-examine the complainant.

Filing Reason

Petitioner contested the rejection of her application under Section 145(2) of the N.I. Act.

Previous Decisions

Trial Court rejected the application; Sessions Court upheld the rejection.

Issues

Whether the petitioner demonstrated sufficient probable grounds for defence to warrant cross-examination. Whether the Trial Court erred in rejecting the application under Section 145(2) of the N.I. Act.

Submissions/Arguments

Petitioner argued that she disclosed sufficient probable defences and the Trial Court failed to appreciate them. Respondent contended that the application was vague and did not disclose any probable defence.

Ratio Decidendi

The court emphasized the accused's right to cross-examine the complainant under Section 145(2) of the N.I. Act, highlighting that the mere assertion of probable defence is sufficient to warrant such a right.

Judgment Excerpts

The petitioner impugns order dated 25.01.2023 passed by Judicial Magistrate First Class. The Trial Court has further observed that Bank Cheque Return Memo gives only reason as ‘insufficient funds’. This Court finds that Trial Court as well as Sessions Court cannot be justified in holding that defences put forth by petitioner are not sufficient.

Procedural History

The petitioner filed an application under Section 145(2) of the N.I. Act, which was rejected by the Trial Court on 25.01.2023. The petitioner then filed a Criminal Revision Application No.68/2024 before the Sessions Court, which was rejected on 23.05.2025.

Acts & Sections

  • Negotiable Instruments Act, 1881: Section 138, Section 145(2)
  • Indian Evidence Act: Section 45
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