{"id":260872,"date":"2022-01-31T11:00:02","date_gmt":"2022-01-31T05:30:02","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=260872"},"modified":"2022-01-31T09:58:32","modified_gmt":"2022-01-31T04:28:32","slug":"section-138-ni-act-11","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/31\/section-138-ni-act-11\/","title":{"rendered":"Appellate Courts where appeals are pending against judgments in complaint under S. 138 NI Act to make an effort to settle dispute through mediation: Bom HC issues Practice Directions"},"content":{"rendered":"<p style=\"text-align: justify;\">In compliance with the Supreme Court&#8217;s decision dated 16-4-2021, passed in <a href=\"http:\/\/www.scconline.com\/DocumentLink\/xPH2mjS1\">(2021) 10 SCC 598<\/a> <em>\u201cIn Re: Expeditious Trial of Cases under Section 138 of Negotiable Instrument Act 1881\u201d<\/em>, the Chief Justice of Bombay High Court has issued the following practice directions: &#8211;<\/p>\n<p style=\"text-align: justify;\">1. The magistrates having jurisdiction to try offences under the Negotiable Instruments Act, 1881, shall record cogent and sufficient reasons before converting a complaint under Section 138 of the N.I. Act from summary trial to summons trial in the exercise of power under the second proviso of Section 143 of N.I.Act. Due care and caution shall be exercised in this regard and the <strong><span style=\"color: #0000ff;\">conversion of summary trial to summons trial shall not be in a mechanical manner. <\/span><\/strong><\/p>\n<p style=\"text-align: justify;\">2. On receipt of any complaint under Section 138 of N.I. Act, wherever it is found that <strong><span style=\"color: #0000ff;\">any accused is resident of the area beyond the territorial jurisdiction of the magistrate<\/span> <\/strong>concerned, an inquiry shall be conducted by the magistrate to arrive at sufficient grounds to proceed against the accused as prescribed under Section 202 of Cr.P.C.<\/p>\n<p style=\"text-align: justify;\">3. While conducting any such inquiry under Section 202 of Cr.P.C., the evidence of witnesses on behalf of the complainant shall be permitted to be taken on affidavit. In suitable cases, the magistrate may restrict the inquiry to the examination of documents without insisting for examination of witnesses for satisfaction as to the sufficiency of grounds for proceeding under the said provision.<\/p>\n<p style=\"text-align: justify;\">4. <strong><span style=\"color: #0000ff;\">Trial Court shall treat service of summons in one complaint under Section 138 of the N.I. Act<\/span><\/strong> forming part of a transaction, as deemed service in respect of all complaints filed before the same Court relating to the dishonor of cheques issued as a part of the same transaction.<\/p>\n<p style=\"text-align: justify;\">5. <strong><span style=\"color: #0000ff;\">Trial Courts have no inherent power to review or recall the issue of summons<\/span><\/strong> in relation to complaints filed under Section 138 of N.I. Act. However, the same shall not affect the power of the Trial Court under Section 322 of Cr.P.C to revisit the order of issue of process in case it is brought to the court\u2019s notice that it lacks jurisdiction to try the complaint.<\/p>\n<p style=\"text-align: justify;\">6. <strong><span style=\"color: #0000ff;\">Section 258 of Cr.P.C. has no applicability to complaints under Section 138 of the N.I.Act<\/span><\/strong>. The words \u201cas far as may be\u201d in section 143 are used only in respect of applicability of Sections 262 to 265 of the Code and the summary procedure to be followed for trials under the said Code.<\/p>\n<p style=\"text-align: justify;\">7. The appellate courts before which appeals against the judgments in complaint under Section 138 of the N.I. Act are pending are directed to make an effort to <strong><span style=\"color: #0000ff;\">settle the dispute through mediation<\/span><\/strong>.<\/p>\n<p style=\"text-align: justify;\">The above said practice directions are to come into effect from immediate effect. High Court also directed for strict compliance of the directions.<\/p>\n<hr \/>\n<p><strong>Bombay High Court<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>Circular No.\u00a0Rule\/P.1605\/2022<\/strong><\/p>\n<p style=\"text-align: right;\"><strong>[Circular dt. 27-1-2022]<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In compliance with the Supreme Court&#8217;s decision dated 16-4-2021, passed in (2021) 10 SCC 598 \u201cIn Re: Expeditious Trial of Cases under <\/p>\n","protected":false},"author":8808,"featured_media":74381,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1188,2],"tags":[3029,44016,17041,23584,48486,12161],"class_list":["post-260872","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hot_off_the_press","category-news","tag-cheque_bounce","tag-dishonor-of-cheque","tag-negotiable-instruments-act","tag-section-138-ni-act","tag-service-of-summons","tag-territorial-jurisdiction"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Appellate Courts where appeals are pending against judgments in complaint under S. 138 NI Act to make an effort to settle dispute through mediation: Bom HC issues Practice Directions | SCC 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