Supreme Court Allows Complainant in Negotiable Instruments Act Case — Remand Order Set Aside. The absence of a plea of prejudice by the accused was pivotal in determining the remand's propriety under Section 138 of the Negotiable Instruments Act, 1881.

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Case Note & Summary

The case involved an appeal under the Negotiable Instruments Act, 1881, where the appellant, a complainant, challenged a High Court order that remanded the matter for fresh trial from the stage of defence evidence. The remand was based on the Supreme Court's earlier decision in M/s Mandvi Cooperative Bank Limited v. Nimesh B. Thakore. The core issue was whether the remand was justified in the absence of a plea of prejudice from the accused. The court noted that the evidence of the complainant could be presented via affidavit, but the defence evidence could not be limited to affidavits alone. The accused had claimed that a signed blank cheque was given as security for a loan, but failed to substantiate his claims regarding the complainant's absence during critical times. The court found that the accused did not raise any plea of prejudice at the trial or appellate stages, which was crucial in determining the validity of the remand. Ultimately, the Supreme Court set aside the High Court's order, restoring the case for consideration on its merits while allowing the appeal and rejecting any pending applications.

Headnote

A) Criminal Law - Remand Orders - Properness of Remand - Negotiable Instruments Act, 1881, Section 138 - The court examined the propriety of a remand order made by the High Court, which was based on a previous decision regarding the evidence of the complainant. It was held that the absence of a plea of prejudice by the accused undermined the justification for remand, leading to the appeal being allowed and the remand order set aside (Paras 2-10).

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Issue of Consideration

Whether the remand order was proper given the absence of a plea of prejudice by the accused.

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Final Decision

The Supreme Court allowed the appeal, set aside the remand order, and restored the case for consideration on its merits.

Law Points

  • Negotiable Instruments Act
  • 1881
  • Section 138
  • Criminal Procedure Code
  • 1973
  • Section 145
  • Evidence
  • Prejudice
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Case Details

2026 LawText (SC) (09) 88

Criminal Appeal No. of 2026 (@Special Leave Petition (Crl.) No.499 of 2026)

2026-09-22

J. B. Pardiwala J. , K. Vinod Chandran J.

2026 INSC 1053

Babu Joseph K., Raghenth Basant

Sanu Varghese

Shoukkathali

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Nature of Litigation

Appeal against a remand order in a case under the Negotiable Instruments Act.

Remedy Sought

The appellant sought to set aside the remand order of the High Court.

Filing Reason

The appellant was aggrieved by the High Court's decision to remand the case for fresh trial.

Previous Decisions

The High Court had remanded the matter based on a previous Supreme Court decision.

Issues

Whether the remand order was justified in the absence of a plea of prejudice by the accused.

Submissions/Arguments

The appellant argued that the remand was improper due to the lack of prejudice. The respondent contended that the trial had resumed and completed.

Ratio Decidendi

The absence of a plea of prejudice by the accused was critical in determining the propriety of the remand order under Section 138 of the Negotiable Instruments Act.

Judgment Excerpts

The ground on which the remand was made was the decision of this Court in M/s Mandvi Cooperative Bank Limited v. Nimesh B. Thakore. The accused never alleged a prejudice before the Trial Court or before the First Appellate Court.

Procedural History

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act. The High Court remanded the matter for fresh trial, which led to the appeal before the Supreme Court.

Acts & Sections

  • Negotiable Instruments Act, 1881: Section 138
  • Criminal Procedure Code, 1973: Section 145
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