Karnataka High Court
Sri. Rohith vs Sri . Anil Kumar J on 11 July, 2023
Author: M.Nagaprasanna
Bench: M.Nagaprasanna
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NC: 2023:KHC:24782
CRL.P No. 4978 of 2023
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
DATED THIS THE 11TH DAY OF JULY, 2023
BEFORE
THE HON'BLE MR JUSTICE M.NAGAPRASANNA
CRIMINAL PETITION NO. 4978 OF 2023
BETWEEN:
SRI. ROHITH
S/O. NARAYANASWAMY
AGED ABOUT 41 YEARS
R/AT NO.12/21, 11TH CROSS,
VYALIKAVAL, MALLESWARAM,
BENGALURU - 560 003.
...PETITIONER
(BY SRI. SURESHA C.,ADVOCATE)
AND:
Digitally signed
by PADMAVATHI SRI. ANIL KUMAR J
BK S/O. JANARADHANA,
Location: HIGH AGED ABOUT 44 YEARS,
COURT OF
KARNATAKA R/AT. 687/1,
SRINIVASA NILAYA,
OLD PANCHAYATH ROAD,
YESHWANTHPURA,
BENGALURU-560 022.
...RESPONDENT
(BY SRI. TULSI KUMAR B.N..,ADVOCATE)
THIS CRIMINAL PETITION FILED U/S.482 CR.P.C IS
FILED PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN
C.C.NO.21207/2022 (PCR NO.9641/2022) ON THE FILE OF THE
XII ADDITIONAL CHIEF METROPOLITAN MAGISTRATE,
BENGALURU CITY AND SET ASIDE THE ORDER DATED
02.07.2022 TAKING COGNIZANCE AGAINST THE PETITIONER
FOR THE OFFENCE P/U/S.138 OF NI ACT.
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NC: 2023:KHC:24782
CRL.P No. 4978 of 2023
THIS PETITION, COMING ON FOR ADMISSION, THIS DAY,
THE COURT MADE THE FOLLOWING:
ORDER
The petitioner is before this Court calling in question the proceedings in C.C.No.21207/2022 registered for the offences punishable under Section 138 of Negotiable Instruments Act, 1881 (for short hereinafter referred to as 'N.I Act') pending on the file of XII Additional Chief Metropolitan Magistrate, Bengaluru.
2. Heard Sri. Suresha C., learned counsel for the petitioner and Sri. Tulsi Kumar B.N., learned counsel for the respondent.
3. Facts in brief germane as follows:
The petitioner is the accused. The respondent is the complainant. They two have a transaction. In furtherance of the said transaction, the petitioner is said to have issued two cheques on 01.04.2022 and 07.04.2022 for Rs.7,50,000/- each. The complainant presents the cheque on 11.04.2022 and is dishonored for the reason that non--3-
NC: 2023:KHC:24782 CRL.P No. 4978 of 2023 Cheque Truncation System Cheque (for short hereinafter referred to as 'non-CTS cheque') not allowed, which leads the complainant to register a complaint invoking Section 200 of Code of Criminal Procedure (for short hereinafter referred to as Cr.P.C.'). before the learned Magistrate for offences punishable under Section 138 of N.I. Act.
4. The concerned Court takes cognizance of the offence and taking cognizance of the offence leads the petitioner to this Court in the subject petition.
5. Learned counsel for the petitioner addresses a solitary submission that a non-CTS cheque not allowed, cannot become a subject matter of proceedings under the N.I. Act before the concerned Court. He would submit, if the non-CTS cheque is not allowed, it cannot be an offence under Section 138 of N.I. Act itself.
6. On the other hand, learned counsel for the respondent, would refute the submission to contend that the non-CTS cheques may not be in existence after -4- NC: 2023:KHC:24782 CRL.P No. 4978 of 2023 01.01.2013, but the Reserve Bank of India itself has clarified that those cheques would be still valid as a 'Negotiable Instrument'. If it is still valid as a Negotiable Instrument, proceedings before the concerned Court can continue on a non-CTS cheque. Learned counsel would also rely on the order passed by the Co-ordinate Bench of this Court in Crl.A.No.1514/2019 disposed on 13.02.2023, where the acquittal of the accused was called in question by the complainant and the acquittal is set aside, the subject matter of said proceedings is a non- CTS cheque. He would therefore seek to dismissal of the petition.
7. I have given my anxious consideration to the submissions made by the respective learned counsel and I have perused the materials on record.
8. The issue lies in a narrow compass. The transaction between the parties is not in dispute. What is issued by the petitioner is a non-CTS cheque. The cheque truncated scheme was introduced by the Reserve Bank of -5- NC: 2023:KHC:24782 CRL.P No. 4978 of 2023 India in the year 2011 and the scheme was still in operation upto 31.12.2018. Therefore, on and from 01.01.2019, the non-CTS cheque would lose its validity. The Reserve Bank of India further clarifies that though the non-CTS cheque loses its value from 01.01.2019, it would still be valid as a 'Negotiable Instrument'.
9. In the teeth of the aforesaid facts, the proceedings instituted by the complainant before the concerned Court cannot be seen to be tumbling down.
10. It would be useful to refer to the Circular of the Reserve Bank of India, which hold that non-CTS cheques are valid as a Negotiable Instrument and clarification by the Reserve Bank of India is as follows:
"4. Are non-CTS cheques invalid?
Banks have been advised to issue only CTS 2010 standard compliant cheques from September 30, 2012. Earlier, there were separate clearing sessions for non-
CTS cheques. However, they were discontinued with effect from December, -6- NC: 2023:KHC:24782 CRL.P No. 4978 of 2023 31, 2018. As of now, non-CTS cheques cannot be presented in CTS. Banks have been advised to withdraw the non-CTS cheques from the customers. However, non-CTS cheques remain to be valid as a negotiable instrument."
11. The solitary submission of the petitioner is thus unacceptable.
The petition lacking in merit stands rejected.
Sd/-
JUDGE HJ List No.: 1 Sl No.: 30