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Gujarat High Court

Pradeep M. Shah S/O Mahipatrai J. Shah & 2 vs State Of Gujarat & on 26 April, 2016

Author: R.M.Chhaya

Bench: R.M.Chhaya

               R/SCR.A/5277/2014                                                 ORDER



                    IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

              SPECIAL CRIMINAL APPLICATION (QUASHING) NO. 5277 of 2014
         ==========================================================
               PRADEEP M. SHAH S/O MAHIPATRAI J. SHAH & 2....Applicant(s)
                                      Versus
                       STATE OF GUJARAT & 1....Respondent(s)
         ==========================================================
         Appearance:
         MR VISHAL B MEHTA, ADVOCATE for the Applicant(s) No. 1-3
         MR KP RAWAL, ADDITIONAL PUBLIC PROSECUTOR for the
         RESPONDENT(s) No. 1
         MR PK NANAVATI, ADVOCATE for NANAVATI ASSOCIATES for the
         Respondent(s) No. 2
         ==========================================================

                 CORAM: HONOURABLE MR.JUSTICE R.M.CHHAYA

                                    Date : 26/04/2016


                                     ORAL ORDER

1. By   way   of   this   petition   under   Section   482   of  the   Code   of   Criminal   Procedure,   1973  (hereinafter referred to as "the Code") , the  petitioners   have   prayed   for   quashing   and  setting   aside   the   impugned   order   dated  20.11.2014   passed   below   Exh.118   in   Criminal  Complaint   no.1628   of   2000.   Record   indicates  that   relying   upon   the   judgment   of   the   Apex  Court in the case of  Dashrath Roopsinh Rathod  Vs. State of Maharashtra & Ors., 2014 (2) GLH  Page 1 of 8 HC-NIC Page 1 of 8 Created On Tue May 03 00:18:37 IST 2016 R/SCR.A/5277/2014 ORDER 689, it is contended by the present petitioners  that  the Court at Vadodara had no territorial  jurisdiction and prayed that jurisdiction under  Section   201(a)   of   the   Code   of   Criminal  Procedure,   1973   be   exercised   and   return   a  complaint filed to the complainant. The learned  Magistrate   heard   both   the   parties   and   by   the  impugned order dated 20.11.2014 was pleased to  reject   the   said   application   below   Exh.118. 

Being aggrieved by the said order, the present  petition is filed.

2. This   Court   (Coram:   Vipul   M.   Pancholi,   J.)  passed the following order:­ "Heard   learned   advocate   Shri   Vishal  B.   Mehta   for   the   petitioners   and  learned   Additional   Public   Prosecutor  Ms.   Maithili   Mehta   for   the  respondent­State of Gujarat.

2.   Learned   advocate   for   the  petitioners   submitted   that   the  petitioners gave an application under  Section   201(a)   of   the   Criminal  Procedure   Code,   1973,   for   returning  the   complaint   to   the   complainant   as  per   the   decision   of   the   Honourable  Supreme Court rendered in the case of  Dashrath Roopsinh Rathod Vs. State of  Maharashtra   and   others  reported   in  Page 2 of 8 HC-NIC Page 2 of 8 Created On Tue May 03 00:18:37 IST 2016 R/SCR.A/5277/2014 ORDER 2014 (2) G.L.H. 689.

3. Learned   advocate   for   the  petitioners   further   referred   to   the  impugned   order   dated   20th  November  2011 passed by the learned Additional  Chief   Judicial   Magistrate,   Vadodara,  wherein it is observed that, "In   the  present  case  the  complainant  has   already   presented   the   Affidavit  in Chief Examination at Ex, 47 on dt.  20.06.2014   and   also   produced   the  documentary   evidence   upon   which   its  relied at Exh.48. And now the present  case is pending for cross examination  of   the   complainant   by   the   Accused  side."

4. Learned   advocate   for   the  petitioners   relied   upon   the   decision  in   the   case   of  Dashrath   Roopsinh  Rathod   (supra),   more   particularly   on  paragraph No.20 of the said judgment.  He has also relied upon the judgment  of this Court dated 8th  December 2014  in   Special   Criminal   Application  No.4194   of   2014   and   allied   matters.  Relying   upon   paragraph   No.18   of   the  said  judgment,  he   has   submitted  that  the   case   of   the   petitioner   is  squarely covered by the aforesaid two  decisions.

5. In   view   of   the   aforesaid  submissions,   issue   urgent   notice   to  the   respondents   returnable   on   5th  February   2015.   Learned   Additional  Public   Prosecutor   Ms.   Maithili   Mehta  waives service of notice on behalf of  respondent   No.1­State   of   Gujarat.  Direct service qua respondent No.2 is  permitted.



                                 Page 3 of 8

HC-NIC                         Page 3 of 8     Created On Tue May 03 00:18:37 IST 2016
               R/SCR.A/5277/2014                                               ORDER




In   the   meantime,   proceedings   of  Criminal Case No.1628 of 2000 pending  before  the  Court  of  Additional  Chief  Judicial   Magistrate,   Vadodara,   are  stayed   till   the   next   date   of  hearing."

3. Heard   Mr.   Vishal   Mehta,   learned   advocate   for  the   petitioner   and   Mr.   K.P.   Rawal,   learned  Additional Public Prosecutor for the respondent 

- State and Mr. P.K. Nanavati, learned advocate  for   respondent   no.2.   Considering   the   order  dated 27.1.2015 and the main contention raised  by   the   petitioners   is   that   in   light   of   the  ratio laid down by the Apex Court in the case  of  Dashrath Roopsinh Rathod  (supra), the Court  at Vadodara had no jurisdiction.

4. It   is   an   admitted   position   that   after   the  judgment of the Apex Court in Dashrath Roopsinh  Rathod  (supra),   Section   142A   came   to   be  inserted.   At   this   stage,   it   would   be  advantageous   to   refer   to   the   judgment   of   the  Apex   Court   in   the   case   of  Bridgestone   India  Private Limited Vs. Inderpal Singh, reported in  Page 4 of 8 HC-NIC Page 4 of 8 Created On Tue May 03 00:18:37 IST 2016 R/SCR.A/5277/2014 ORDER (2016) 2 SCC 75, wherein it is observed by the  Apex Court as under:­ "11. In   order   to   overcome   the   legal  position   declared   by   this   Court   in  Dashrath   Rupsingh   Rathod's   case,  learned counsel for the appellant has  drawn our attention to the Negotiable  Instruments   (Amendment)   Second  Ordinance, 2015 (hereinafter referred  to as `the Ordinance'). A perusal of  Section   1(2)   thereof   reveals,   that  the Ordinance would be deemed to have  come   into   force   with   effect   from  15.06.2015.   It   is   therefore   pointed  out   to   us,   that   the   Negotiable  Instruments   (Amendment)   Second  Ordinance,   2015   is   in   force.   Our  attention was then invited to Section  3   thereof,   whereby,   the   original  Section   142   of   the   Negotiable  Instruments   Act,   1881,   came   to   be  amended, and also, Section 4 thereof,  whereby,   Section   142A   was   inserted  into the Negotiable Instruments Act

12. Sections   3   and   4   of   the  Negotiable   Instruments   (Amendment)  Second   Ordinance,   2015   are   being  extracted hereunder:

"3. Amendment of Section 142 - In the  principal   Act,   section   142   shall   be  numbered   as   sub­section   (1)   thereof  and   after   sub­section   (1)   as   so  numbered,   the   following   sub­section  shall be inserted, namely:­ (2) The   offence   under   section   138  shall be inquired into and tried only  by   a   court   within   whose   local  jurisdiction,­­ Page 5 of 8 HC-NIC Page 5 of 8 Created On Tue May 03 00:18:37 IST 2016 R/SCR.A/5277/2014 ORDER
(a) if   the   cheque   is   delivered   for  collection   through   an   account,   the  branch of the bank where the payee or  holder in due course, as the case may  be,   maintains   the   account,   is  situated; or 
(b) if   the   cheque   is   presented   for  payment by the payee or holder in due  course   otherwise   through   an   account,  the   branch   of   the   drawee   bank   where  the  drawer  maintains  the  account,  is  situated.

Explanation   -   For   the   purposes   of  clause   (a),   where   a   cheque   is  delivered   for   collection   at   any  branch   of   the   bank   of   the   payee   or  holder   in   due   course,   then,   the  cheque   shall   be   deemed   to   have   been  delivered   to   the   branch   of   the   bank  in   which   the   payee   or   holder  in   due  course, as the case may be, maintains  the account."

4. Insertion of new section - In the  principal Act, after section 142, the  following   section   shall   be   inserted,  namely:­ 142A.   Validation   for   transfer   of  pending   cases   ­   (1)   Notwithstanding  anything   contained   in   the   Code   of  Criminal   Procedure,   1973   or   any  judgment, decree, order or directions  of   any   court,   all   cases   transferred  to   the   court   having   jurisdiction  under sub­section (2) of section 142,  as   amended   by   the   Negotiable  Instruments   (Amendment)   Ordinance,  2015,   shall   be   deemed   to   have   been  transferred   under   this   Ordinance,   as  if that sub­section had been in force  Page 6 of 8 HC-NIC Page 6 of 8 Created On Tue May 03 00:18:37 IST 2016 R/SCR.A/5277/2014 ORDER at all material times.

(2) Notwithstanding   anything  contained   in   subsection   (2)   of  section 142 or sub­section (1), where  the   payee   or   the   holder   in   due  course, as the case may be, has filed  a   complaint   against   the   drawer   of   a  cheque   in   the   court   having  jurisdiction under sub­section (2) of  section   142   or   the   case   has   been  transferred   to   that   court   under  subsection (1), and such complaint is  pending in that court, all subsequent  complaints arising out of section 138  against   the   same   drawer   shall   be  filed   before   the   same   court  irrespective of whether those cheques  were   delivered   for   collection   or  presented   for   payment   within   the  territorial   jurisdiction   of   that  court.

(3) If,   on   the   date   of   the  commencement   of   this   Ordinance,   more  than   one   prosecution   filed   by   the  same   payee   or   holder   in   due   course,  as the case may be, against the same  drawer   of   cheques   is   pending   before  different  courts,  upon  the  said  fact  having been brought to the notice of  the  court,  such  court  shall  transfer  the   case   to   the   court   having  jurisdiction under sub­section (2) of  section   142,   as   amended   by   the  Negotiable   Instruments   (Amendment)  Ordinance,   2015,   before   which   the  first case was filed and is pending,  as   if   that   subsection   had   been   in  force at all material times."

(Emphasis supplied)

13. A perusal of the amended Section  142(2),   extracted   above,   leaves   no  Page 7 of 8 HC-NIC Page 7 of 8 Created On Tue May 03 00:18:37 IST 2016 R/SCR.A/5277/2014 ORDER room for any doubt, specially in view  of   the   explanation   thereunder,   that  with   reference   to   an   offence   under  Section   138   of   the   Negotiable  Instruments   Act,   1881,   the   place  where   a   cheque   is   delivered   for  collection   i.e.   the   branch   of   the  bank   of   the   payee   or   holder   in   due  course, where the drawee maintains an  account,   would   be   determinative   of  the   place   of   territorial  jurisdiction."

5. The   learned   advocates   appearing   for   the  respective   parties   have   agreed   that   issued  involved   in   this   petition   is   covered   by   the  judgment of the Apex Court in Bridgestone India  Private  Limited  (supra). In facts of the  case  therefore,   applying   the   ratio   of  Bridgestone  India   Private   Limited  (supra)  and   considering  the   provisions   of   Section   142A   of   the  Negotiable   Instruments   Act,   1881,   no  interference   is   called   for.   The   petition  therefore   deserves   to   be   dismissed   and   is  hereby rejected. Interim relief granted earlier  stands vacated. Notice discharged.

(R.M.CHHAYA, J.) mrp Page 8 of 8 HC-NIC Page 8 of 8 Created On Tue May 03 00:18:37 IST 2016