Tuesday, April 19, 2022

SECTION 138 NEGOTIABLE INSTRUMENTS ACT & TYPOGRAPHICAL ERROR IN COMPLAINT

 


Section 138 Negotiable Instruments Act & typographical error IN COMPLAINT

The complaints due to bouncing of cheques are filed in the courts of Chief Judicial Magistrates or Chief Metropolitan Magistrates, as the case may be, depending on the location being Metropolitan Cities or other locations. The cause and mode of filing complaint is contained in Negotiable Instruments Act and Code of Criminal Procedure. Earlier, the complaints upon dishonor of cheques used to be treated as summary proceedings and the further examination of complainant post summoning of accused was not necessary. However, in due course , the complaints are being treated as summon case, in case, the accused files application under section 145(2) of Negotiable Instruments Act, seeking further examination of complainant’s witness. The permission for such cross examination of complainant witness are generally granted in terms of judgment rendered by hon’ble Supreme Court in Mandvi Co-Op Bank Ltd Vs Nimesh B Thakore (2010) 1 DCR 177. The complainant is therefore examined in the pres-summoning stage and in post summoning stage as well and in this backdrop, complaints u/s 138 of Negotiable Instruments Act are treated as summons case.

The examination in chief is filed in affidavit on behalf of the complainant and the documents relied upon by the complainant in original or certified copy, as the case may be are duly exhibited. The cheque and bank memo relating to communication regarding dishonor of cheque/s,  in particular are filed in original. If on the basis of averments, more particularly, if prima facie consideration is made out apart from the other requisites as per section 138 of Negotiable Instruments Act, summons to the accused are issued. There is also a presumption in law, as per section 139 of Negotiable Instruments Act to the effect that, unless, contrary is proved, the cheques shall be deemed to be issued towards liability. The onus of rebuttal shifts on the accused and unless adequate rebuttal is made during trial, the presumption shall hold good, provided other requisites are duly proved as well.

The affidavit of evidence and the documents exhibited or marked is required to be in sync with each other. However, there may be instances, though rare, that the cheque number in several paces of complaint and affidavit or dates are wrong and the cheque number or date did not match with the cheque filed in original. Though, essentially, the cheque in original filed shall be the cheque in respect whereof complaint u/s 138 of Negotiable Instruments Act is deemed to be filed. The issue that whether  wrong cheque number mentioned in the legal notice , complaint or in affidavit shall be fatal to the prosecution case? Still further, whether,  upon taking of cognizance of complaint that should be treated as valid complaint or valid cognizance. Whether on the aforesaid premise, the complaint could be quashed. In other words, whether such error (typographical error) shall be fatal to the complaint case and that too, when the original cheque and bank memo are duly exhibited and cause sought to be portrayed are on the basis of such exhibited documents.

The hon’ble Delhi High Court has dealt with the issue recently in a matter captioned as Naresh Chand Tyagi  Versus Devender Kumar Tyagi CRL.M.C. 3367/2021. The case law in this regard was also analysed and a decision was arrived at.

The contention of the petitioner /accused before the high court

(i)           Cognizance of offence was wrongly taken by the Magistrate of, District: North West, Rohini, Delhi.

(ii)         The concerned cheque was never issued by the petitioner.

(iii)        the cheque numbers mentioned everywhere, whether  it is the notice or the pleadings of the complaint or even the evidence by way of affidavit did not fulfill the ingredients of Section 138 NI Act,

(iv)        the proper statutory legal notice of Thirty (30) from the date of receipt of bank memo is the sine qua non of a complaint

(v)          The notice is bad in law, since, the cheque number itself mentioned in the notice was incorrect and that alleged cheque was never dishonoured;

(vi)        Once, a complaint is filed in the trial court, the complainant cannot amend it at any stage of the trial.

(vii)       That the respondent has not approached the Trial Court with clean hands as the cheque number mentioned itself is wrong and that was not dishonoured.   

The contention of the respondent/complainant before the high court were as under:

(i)          Incorrect mentioning of cheque it is only a typographical error.

(ii)        The cheque along with the bank return memo was duly annexed with the complaint displaying the correct cheque number which was issued by the petitioner herein to discharge his liability.

(iii)       After going through all the annexed documents only, the concerned magistrate had correctly summoned the petitioner/accused and it was observed that there are sufficient grounds to issue summons as the cheque was returned dishonoured as funds insufficient.



Reliance

i.            Veena Vs. State and Anr. 2017 SCC Online Del 9926.

ii.           ii. Babli Majumder V. State of West Bengal 2008 SCC Online Cal 273

iii.          Bhim Singh V. Kan Singh 2003 SCC Online Raj 326.

iv.           Nilesh Kumar Lukand V. Nirmal Bardiya 2010 SCC Online CHH 54.

v.            Pandit Gorelal V. Rahul Punjabi 2010 (2) M.P. L.J. 6.

In Veena Vs. State and Anr. 2017 SCC Online Del 9926 para no. 7 may be reproduced for reference:

“7.That a wrong cheque no. was stated in the complaint may not be the end-all and be-all of the case of the appellant/complainant. The other factors are also required to be seen to decide as to whether the appellant/complainant has been able to prove his case. The original cheque was placed before the trial court and the same was proved as Ex CW/q. Thus, the wrong number of chreque in the complaint would not make any difference and has to be taken a typographical inadvertent mistake”.

What are borne out of record is Naresh Chand Tyagi  (Supra) that the petitioner has not denied signature on the annexed cheque. No FIR has been registered with regard to the issue that respondent has filed a complaint against the petitioner pertaining to a different cheque number or on the basis of cheque not bearing his signature. It is also not the case of the petitioner that cheques were lost or stolen which is evident from the fact that no letter/communication has been sent to bank to stop the payment of the cheques concerned.

It is held by the hon’ble Delhi High Court that typographical error, though, repeated at several places cannot be the reason for quashing of the proceedings. In this context, reference was made to Rajasthan High Court in Oswal Finlease Private Limited V. State of Rajasthan and Another 2014 SCC Online Raj 6663 and it is held as under:

“6. Contention of the learned counsel for petitioner that mistake is bona fide seems to be true. Respondent has relied on 2012(2) Cr. L. R. (Raj) 904, M. R. Choudhary v. State of Rajasthan, where the complaint was filed about a particular cheque whereas cheque submitted before the trial court was different. Hence, the accused was acquitted, but here in the present case, present petitioner wants to rectify his bona fide mistake. Further reliance has been placed on AIR 2008 SC 3086, Subodh S. Salaskar vs. Jaiprakash M. Shah &Or,. where on the facts of the case, amendments on the complaint has been disallowed. But here in the present case, when complainant has been cross examined, the mistake came to the notice of complainant and application for the rectification has been moved and no person could be penalized for his bona fide mistake”.

The Rajasthan High Court had therefore allowed the petition and petitioner(complainant)  was permitted to make necessary amendments in the complaint as about the details of bounced cheque and he was further allowed to file a fresh affidavit in support of his complaint and the respondent is free to cross examine on the same. It was further held in the aforesaid case  that trial court must look into this aspect and mentioning of wrong number of the cheque in the complaint would not make any difference as there are documents placed by respondent on record which gives the correct position and has to be taken as a typographical/inadvertent mistake.

Upon perusal of facts and judicial precedents, substance of law and citations relied upon in this regard, the hon’ble Delhi High Court in Naresh Chand Tyagi  (Supra) was pleased to dismiss the petition filed by the accused /petitioner and directed the concerned trial court to look into this aspect and held that mere mentioning of wrong number of the cheque in the complaint would not make any difference as there are documents placed by respondent on record which gives the correct position and has to be taken as a typographical/inadvertent mistake.



CONCLUSION

What therefore emerges on the basis of the precedents narrated above is that complaint under section 138 of Negotiable Instruments Act shall not be liable to be quashed on account of typographical error to the effect that cheque numbers given on the legal notice or complaint in several places are wrong, so long as cheque annexed and bank memo shows the cheque and the cognizance are taken on the basis of documents annexed and duly exhibited. Mere typographical error as regards the number of cheque shall not be fatal in any case. The section 138 of Negotiable Instruments Act is invariably being tried as a summon case and the complainant shall have the option to lead evidence and prove his case pursuant to his cross examination even subsequent to application filed u/s 145(2) of Negotiable Instruments Act. In summons case, the accused is required to file application u/s 145(2) of Negotiable Instruments Act, if the accused intends to examine the complainant and that is done invariably. At that stage the document placed on record could be again reiterated in support of the complaint and the witness could be confronted with such documents. Moreover, even in pre summoning evidence, so long as the cheque and bank memo is correct and exhibited, merely because, due to typographical error cheque bears different number, that in itself shall not negate the case of complainant. In this perspective, what is of further importance that Section 91 and 92 of evidence Act shall also come in play as what shall be relevant is a document and oral averment contrary to written document shall be meaningless. Apart from that, the complaint, if allowed to be quashed on the premise of wrong number of cheque shown in the complaint, the same shall not aid to the cause of justice, rather shall inhibit that. Therefore, with a view to do substantive justice typographical error of such natures as narrated above, shall not be fatal to the case and rectification in pleadings in the above backdrop could be allowed.

                                                   ---------

Anil K Khaware

Founder & Senior Associate

Societylawandjustice.com

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