Tuesday, April 8, 2025

SECTION-138 OF NI ACT-WHETHER ACCUSED CAN FILE AFFIDAVIT EVIDENCE AS A WITNESS?

 


SECTION-138 of NI Act-WHETHER accused can FILE AFFIDAVIT EVIDENCE as A witness?

 

The process of trial finds procedural regulations in Code of Criminal Procedure (Cr.P.C) and after amendment, in Bhartiya Nyay Surakasha Sanhita (BNSS). In the Negotiable Instruments Act 1881(In short “NI Act”), section 138 was made part of the Act, in 1988, as cheque bouncing instances were on rise and remedial measures to infuse faith in cheque transaction cases were imperative and hence punitive measures is also prescribed u/s 138-142 of the NI Act. The Act has periodically undergone several changes with a view to reinforce the sanity and restore the faith of common people in cheque transactions. Several sections were included thereafter i.e 143-147 are added in the Act view of exigencies. The complaints under Section 138 of the NI Act was treated as summary case, as the cross examination of complainant was not envisaged, however, subsequently, in terms of Section 145, more particularly, section 145 (2), the Magistrate is made empowered to treat the complaint under the Act as summon case, if prima facie defence is available to the accused. In that event, the summary trial is to be treated as summon trial cases. Therefore, the complaints u/s 138 of NI Act, essentially are being tried as summon cases and not as summary cases.

Let us now come to another dimension to it i.e mode and manner of leading evidence. In Cr.P.C, as per section 315, the accused cannot be compelled to stand as witness, unless, it is sought for by the accused himself. In F.I.R case, the oral examination in chief is conducted, pursuant to the statement made before Police u/s 161 of Cr.PC and under the relevant provisions of BNSS, as the case may be. The departure,  however is clear u/s 138-145 of NI Act. It is of significance to point out that the examination of chief of complainant is recorded as per affidavit filed by the complainant and even when the complaint is treated as summons case, after application filed u/s 145(2) filed by the accused for seeking cross examination of complainant witness, there is no need to file separate affidavit or examination in chief and for cross examination of complainant witness. The affidavit in evidence, filed earlier is adopted as a practice and that follows cross examination.

A situation may be pondered over, though. What, if the accused seeks to examine himself as a defence witness and also seeks to file affidavit evidence.? Whether, it is permitted u/s 138 of NI Act complaint? Whether, the accused is permitted to file affidavit evidence, in a manner the complainant does? In the present write up the endeavour shall be to advert on these issues with a view to find answer.

The following judgments in this regard may have to be perused and its tenor and finding shall have to be analysed for arriving at a conclusion:   

(1)  SBI Global Factors Limited vs The State Of Maharashtra And Ors AIRONLINE 2021 BOM 772

 

In the aforesaid judgment, reliance was placed on the Hon'ble Supreme Court in the case of Mandvi Co-op. Bank Ltd. Vs. Nimesh B. Thakore reported in Manu/SC/0016/2010 : AIR 2010 SC 1402 : (2010) 3 SCC 83, in para Nos.30, 31 and 32 has held as under :

"30. Coming now to the last question with regard to the right of the accused to give his evidence, like the complainant, on affidavit, the High Court has held that subject to the provisions of sections 315 and 316 of the Code of Criminal Procedure the accused can also give his evidence on affidavit. The High Court was fully conscious that section 145(1) does not provide for the accused to give his evidence, like the complainant, on affidavit. But the High Court argued that there was no express bar in law against the accused giving his evidence on affidavit and more importantly providing a similar right to the accused would be in furtherance of the legislative intent to make the trial process swifter. In paragraph 29 of the judgment, the High Court observed as follows:

"It is true that section 145(1) confers a right on the complainant to give evidence on affidavit. It does not speak of similar right being conferred on the accused. The Legislature in their wisdom may not have thought it proper to incorporate a word `accused' with the word `complainant' in sub-section (1) of section 145 in view of the immunity conferred on the accused from being compelled to be a witness against himself under Article 20(3) of the Constitution of India...."

 

In paragraph 31 of the judgment it observed:

 

“.... Merely because, section 145(1) does not expressly permit the accused to do so, does not mean that the Magistrate cannot allow the accused to give his evidence on affidavit by applying the same analogy unless there is just and reasonable ground to refuse such permission. There is no express bar on the accused to give evidence on affidavit either in the Act or in the Code..... I find no justified reason to refuse permission to the accused to give his evidence on affidavit subject to the provisions contained in sections 315 and 316 of the Code."

 

What therefore emerges in the above context is that even a cursory perusal of Section 143-145 of NI Act reflect, that whereas, the legislature has provided for the complainant to give his evidence on affidavit, but no corresponding provision is carved out for the accused to do so. Therefore, any inference, that non- mentioning of the accused along with the complainant in sub-section (1) of section 145 for the purpose of entitlement to file evidence affidavit could be merely an omission by the legislature shall be far -fetched. What therefore follows is that if the legislature has not deemed it proper to incorporate the word `accused' with the word `complainant' in section 145(1), the same cannot be read as if even the “accused” shall be deemed to be part of it. Thus, what is explicit can only be given effect to. The case of the complainant in a complaint under section 138 of the Act shall be based on documentary evidence. The accused, it is observed, more oftenly, does not opt even to lead any defence evidence and let the prosecution stand or fall on its own evidence. Even otherwise, in case, the accused opted to lead defence evidence, the nature of its evidence may not be necessarily documentary and it may be such other evidence with a view to rebut the presumption that the issuance of the cheque was not in the discharge of any debt or liability. Hence, the basic difference between the nature of the complainant's evidence and the evidence of the accused in a case of dishonoured cheque has to be contextually understood.

 

The Bombay High Court in SBI Global Factors Limited  (Supra)  has held in view of above settled position of law, that accused/respondent cannot be permitted to file an Affidavit-of-Evidence in-lieu of Examination-in-Chief. The evidence of accused i.e. Affidavit of Evidence in lieu of Examination-in-Chief was thus discarded from record.

2.      That the Karnataka High Court in a matter captioned as  MRS. ZAHEDA INAMDHAR  Vs DR. FATIMA HASSINA SAYEEDHA WRIT PETITION No.3519 OF 2024 (GM – RES) after taking note of Mandvi Co-op. Bank Ltd. (Supra) has held on similar line.

3.      That the Delhi High Court in a matter captioned as MAA TARINI INDUSTRIES LTD. & ANR. Versus PEC LIMITED CRL.M.C. 254/2020 after following Mandvi Co-Operative (Supra) has held as under:

 

18. The provisions of Sections 142 to 147 lay down a Special Code for the trial of offences under the Chapter XVII of the N.I. Act. While considering the scope and ambit of the amended provisions of the Act, the Supreme Court in Mandvi Co. Op. Bank Ltd. v. Nimesh B. Thakore , AIR 2010 SC 1402, has held that the provisions of Sections 143, 144, 145 and 147 expressly depart from and override the provisions of the Cr.PC, the main body of adjective law for criminal trials. The Supreme Court has further held as under:-

"17. It is not difficult to see that sections 142 to 147 lay down a kind of a special code for the trial of offences under Chapter XVII of the Negotiable Instruments Act and sections 143 to 147 were inserted in the Act by the Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002 to do away with all the stages and processes in a regular criminal trial that normally cause inordinate delay in its conclusion and to make the trial procedure as expeditious as possible without in any way compromising on the right of the accused for a fair trial."

 

The aforesaid discussion shall categorically and discerningly reflect that in cheque bouncing cases u/s 138 of Negotiable Instruments Act, there has been no provision even u/s 143-145 of the said Act that accused shall be entitled to file evidence affidavit, whereas the said prescription is clearly made out for the complainant and the complainant can be cross examined on the basis of their evidence affidavit and documents, in a rebuttal by the accused in order to shift the onus back on complainant and to shift the onus u/s 139 of NI Act , in case the accused succeeds in raising tangible rebuttal. However, there is no mechanism in law for the accused in the cases u/s 138 of Negotiable Instruments Act to file evidence affidavit, unlike the complainant. Moreover, even if Section 315 of Cr.PC is taken note of, the accused can lead his evidence as defence witness, if the accused opted to do so. The accused cannot be compelled to do so. In any case, after Mandvi Co-operative (Supra) judgment rendered by the hon’ble Supreme Court, the issue is well settled i.e the accused cannot file evidence affidavit by way of defence evidence in complaints u/s 138 of Negotiable Instruments Act and rebuttal option is available to the accused by way of cross examination of complainant witness and even through defence witness, other than the accused himself, unless, the accused himself also wanted to be examined. The inference therefore is that no affidavit by way of evidence can be filed by the accused in such cases, having been clearly excluded by implication in terms of Section 145 of Negotiable Instruments Act, wherein, the filing of affidavit relates to, by the complainant only.

                                           ------

                          Anil K Khaware

Founder & Senior Associate

Societylawandjustice.com

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