1
REPORTABLE
THE SUPREME COURT OF INDIA
CRIMINAL APPELLATE JURISDICTION
CRIMINAL APPEAL NO. OF 2010
[Arising out of SLP (Crl.) No.3915/2006]
M/S. MANDVI CO-OP BANK LTD. ..........Appellant
VERSUS
NIMESH B. THAKORE ..........Respondent
WITH
CRIMINAL APPEAL NO(S)._______OF 2010
[Arising out of SLP (Crl.) No(s). 4760/2006, 5689/2006, 1106/2007,
6442/2007, 6443/2007 and 6703/2007]
JUDGMENT
AFTAB ALAM, J.
1. Leave granted
2. In these appeals we are required to consider the special provisions laid
down by section 145 of the Negotiable Instruments Act, 1881 (`the Act',
2
hereinafter) for a dishonoured cheque trial and to consider how far certain
assertions made by the accused are in accordance with the provisions
contained in the two sub-sections of that section.
3. The High Court had before it a large number of writ petitions and
applications under section 482 of the Code of Criminal Procedure. Most of
those petitions were filed on behalf of the accused but a few were also at the
instance of the complainants. On the basis of the grievances made and reliefs
prayed for in those petitions the High Court framed the following two
questions as arising for its consideration:
" (A) Whether sub-section (2) of section 145 of the Negotiable
Instruments Act, 1881, (for short, "the Act") confers an
unfettered right on the complainant and the accused to apply to
the court seeking direction to give oral examination-in-chief of
a person giving evidence on affidavit, even in respect of the
facts stated therein and that if such a right is exercised, whether
the court is obliged to examine such a person in spite of the
mandate of section 145(1) of the Act?
(B) Whether the provisions of section 145 of the Act, as
amended by the Negotiable Instruments (Amendment and
Miscellaneous Provisions) Act, 2002, (for short "the amending
Act of 2002") are applicable to the complaints under section
138 of the Act pending on the date on which the amendment
came into force? In other words, do the amended provisions of
section 145(1) and (2) of the Act operate retrospectively? "
4. Answering the questions after a detailed and careful consideration
of all the relevant provisions and earlier decisions of courts, the High
Court held that the person (complainant or his witness) giving evidence
3
on affidavit may be summoned by the court for putting questions as
envisaged under section 165 of the Evidence Act (vide paragraph 24 of
the judgment). He would also be summoned on an application made by
the accused but the right of the accused is limited to cross-examination of
the witness. In terms of section 145(2) the accused can undoubtedly cross-
examine a person whose evidence is given on affidavit but the accused
cannot insist that the witness, on coming to court, should first depose in
examination-in-chief even in respect of matters which are already stated
by him on affidavit (vide paragraph 25 of the judgment). The High Court
further explained that for the prosecution the occasion to summon any of
its witnesses who have given their evidence on affidavit may arise in two
ways. The prosecution may summon a person who has given his evidence
on affidavit and has been cross-examined for "re-examination". This right
of the prosecution, the High Court observed, was not in dispute before it.
The prosecution may also have to summon a witness whose evidence is
given on affidavit in case objection is raised by the defence regarding the
validity and/or sufficiency of proof of some document(s) submitted along
with the affidavit. In that event the witness may be summoned to appear
before the court to cure the defect and to have the document(s) properly
4
proved by following the correct legal mode (vide paragraph 26 of the
judgment).
5. The High Court then considered the claim of the accused that any
evidence in defence, like the complainant's evidence, may also be given
on affidavit. It upheld the claim observing as follows:
"....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."
6. Coming then to the question (B), the High Court had no difficulty
in holding that the provisions of sub-sections (1) and (2) of section 145
were not substantive but only procedural in nature and, therefore, those
provisions would be applicable to the cases pending on the date they came
into force.
7. Apart from considering the two questions the High Court also laid
down, on the request of the parties, a number of guidelines (vide sub-
paragraphs (a) to (r) of paragraph 45 of the judgment) in regard to the
5
procedure that the trial court, the complainant and the accused should
follow in a dishonoured cheque trial on a complaint made under section
138 of the Act. We may have to refer to some of those guidelines later, at
an appropriate place in this judgment.
8. The High Court judgment has given rise to these seven appeals, in
which the following three issues arise for consideration by this court:
1. The extent of the right of the accused under section 145(2) of the
Act: whether the right of the accused is limited to cross-
examination of any person giving evidence on affidavit or is it open
to the accused to insist that notwithstanding the evidence earlier
given on affidavit, on coming to the court the complainant or his
witness should first give deposition in examination-in-chief before
being cross-examined by him? (appeals arising from SLP (Crl.)
No.4760/2006, SLP (Crl.) No.5689/2006, SLP (Crl.) No.1106/2007,
SLP (Crl.) No.6442/2007, SLP (Crl.) No.6443/2007, SLP (Crl.)
No.6703/2007)
2. Whether the provisions of sub-sections (1) and (2) of section 145 of
the Act would apply to proceedings that were pending on February 6,
2003, the date on which those provisions were inserted in the Act?
(appeal arising from SLP (Crl.) No.4760/2006).
6
3. Whether the right to give evidence on affidavit as provided to the
complainant under section 145(1) of the Act is also available to the
accused? (appeal arising from SLP (Crl.) No.3915/2006)
9. For a proper appreciation of the issues it would be necessary to
examine the relevant legal provisions and to ascertain the object and reasons
for which those provisions were brought into existence by making
amendments in the Negotiable Instruments Act, 1881. The Negotiable
Instruments Act was amended first by the Banking Public Financial
Institutions and Negotiable Instruments Laws (Amendment) Act, 1988
and a second time by the Negotiable Instruments (Amendment and
Miscellaneous Provisions) Act, 2002. The first amendment inserted
Chapter XVII in the Act, comprising sections 138 to 143. Section 138 made,
for the first time in the legislative history of the country, the issuance of a
cheque by any person in discharge of any debt or liability owed by him to its
holder, that was not honoured by the banker because of insufficiency of
funds in the account, a penal offence for the drawer that would make him
liable to punishment with imprisonment that might extend to one year (now,
two years after the second amendment with effect from February 6, 2003) or
with fine that might extend to twice the amount of the cheque or both; the
four clauses of the proviso then laid down the preconditions to attract the
7
section, as safeguards for the honest drawer. Section 139 created a
presumption (rebuttable!) that the cheque was issued by the drawer in
discharge of any debt or liability owed by him to its holder. Section 140
provided that it would not be open to the accused in a prosecution under
section 138 to take the plea that when he issued the cheque he had no reason
to believe that on presentation, the cheque may be dishonoured for the
reasons stated in that section. Section 141 dealt with offences by companies.
Section 142 laid down the conditions subject to which alone the court would
take cognizance of any offence punishable under section 138 of the Act.
10. The statement of objects and reasons appended to the bill explaining
the provisions of the new chapter stated as follows:
"This clause [clause (4) of the Bill] inserts a new Chapter XVII
in the Negotiable Instruments Act, 1881. The provisions
contained in the new Chapter provide that where any cheque
drawn by a person for the discharge of any liability is returned
by the bank unpaid for the reason of the insufficiency of the
amount of money standing to the credit of the account on which
the cheque was drawn or for the reason that it exceeds the
arrangements made by the drawer of the cheque with the
bankers for that account, the drawer of such cheque shall be
deemed to have committed an offence. In that case, the drawer,
without prejudice to the other provisions of the said Act, shall
be punishable with imprisonment for a term which may extend
to one year, or with fine which may extend to twice the amount
of the cheque, or with both.
The provisions have also been made that to constitute the
said offence-
8
(a) such cheque should have been presented to the bank within
a period of six months of the date of its drawal or within the
period of its validity, whichever is earlier; and
(b) the payee or holder in due course of such cheque should
have made a demand for the payment of the said amount of
money by giving a notice, in writing, to the drawer of the
cheque within fifteen days of the receipt of the information
by him from the bank regarding the return of the cheque
unpaid; and
(c) the drawer of such cheque should have failed to make the
payment of the said amount of money to the payee or the
holder in due course of the cheque within fifteen days of the
receipt of the said notice.
It has also been provided that it shall be presumed, unless
the contrary is proved, that the holder of such cheque received
the cheque in the discharge of a liability. Defences which may
or may not be allowed in any prosecution for such offence have
also been provided to make the provisions effective. Usual
provision relating to offences by companies has also been
included in the said new Chapter. In order to ensure that
genuine and honest bank customers are not harassed or put to
inconvenience, sufficient safeguards have also been provided in
the proposed new Chapter. Such safeguards are-
(a) that no court shall take cognizance of such offence except
on a complaint, in writing, made by the payee or the holder
in due course of the cheque;
(b) that such complaint is made within one month of the date on
which the cause of action arises; and
(c) that no court inferior to that of a Metropolitan Magistrate or
a Judicial Magistrate or a Judicial Magistrate of the first
class shall try any such offence."
11. The speech of the Minister of Finance on December 2, 1988 in course
of the debate on the Bill in the Lok Sabha tells us that Chapter XVII was
inserted in the Act, in light of the Report submitted in the year 1975 by the
9
Committee on Banking Laws headed by Dr. Rajamannar. It appears that in
course of the debate some members had expressed the view that the
provisions of Chapter XVII sought to be inserted in the Act, contained very
abnormal, rather very dangerous provisions, in that a kind of civil liability is
supposed to be converted into a kind of criminal act which would have far
reaching consequences. Dispelling the apprehensions of those members the
Minister pointed out that the proposed amendments were along the same
lines as the law prevailing in other countries such as the UK, the USA,
Belgium, Portugal, Argentina, etc. Further, in regard to the object of the
provisions, the Minister stated as follows:
"In fact, the whole purpose of bringing about this provision is
to make the drawing of cheque a regular mode of payment.
Unfortunately, today if a cheque is given to a party, they will
not consider it a sufficient means of payment, they will insist
that unless the cheque is encashed, they will not take that as a
kind of payment made."
(emphasis added)
12. The Minister then elaborated on the safeguards provided in the law to
save an honest drawer from coming under the rigours of the section due to
any bona fide mistake and finally went on to say as follows:
"But in spite of time for payment and all other provisions that
are made, if the party is not able to make good the amount of
money which he owes to a particular party and in spite of the
notice also he does not act, the conclusion is inescapable that
he will be prosecuted, legal action will have to be taken. It is
for the court to take a decision, whether he be imprisoned for
10
one year, or double the amount that would be paid as fine or
both things will have to be taken together. Ultimately, it is for
the court to take a decision. But these are the provisions which
have been provided for so that the parties drawing the cheques
are careful enough to see that there are enough resources
available in their bank account and if a cheque is drawn, it will
not be returned."
(emphasis added)
13. The provisions of the newly inserted Chapter XVII, on coming into
force with effect from April 1, 1989, brought in a veritable deluge of cases
in the criminal court system. In the metropolitan cities and the commercial
centres of the country, it almost appeared that the main function of the
Magistrate's court was to recover monies on behalf of parties on the wrong
end of the commercial transactions that had gone sour. Complaints under
section 138 of the Act came to be filed in such large numbers that it became
impossible for the courts to handle them within a reasonable time and it also
had a highly adverse effect on the court's normal work in ordinary criminal
matters. A remedial measure was urgently required and the legislature took
action by introducing further amendments in the Act by the Negotiable
Instruments (Amendment and Miscellaneous Provisions) Act, 2002. The
2002 amendment inserted in the Act for the first time sections 143 to 147
besides bringing about a number of changes in the existing provisions of
sections 138 to 142. Section 143 gave to the court the power to try cases
11
summarily; section 144 provided for the mode of service of summons;
section 145 made it possible for the complainant to give his evidence on
affidavit; section 146 provided that the bank's slip would be prima facie
evidence of certain facts and section 147 made the offences under the Act
compoundable.
14. The statement of objects and reasons appended to the bill stated as
follows:
"The Negotiable Instruments Act, 1881 was amended by the
Banking, Public Financial Institutions and Negotiable
Instruments Laws (Amendment) Act, 1988 wherein a new
Chapter XVII was incorporated for penalties in case of
dishonour of cheques due to insufficiency of funds in the
account of the drawer of the cheque. These provisions were
incorporated with a view to encourage the culture of use of
cheques and enhancing the credibility of the instrument. The
existing provisions in the Negotiable Instruments Act, 1881,
namely, sections 138 to 142 in Chapter XVII have been found
deficient in dealing with dishonour of cheques. Not only the
punishment provided in the Act has proved to be inadequate,
the procedure prescribed for the courts to deal with such
matters has been found to be cumbersome. The courts are
unable to dispose of such cases expeditiously in a time bound
manner in view of the procedure contained in the Act.
2. A large number of cases are reported to be pending under
sections 138 to 142 of the Negotiable Instruments Act in
various courts in the country. Keeping in view the large
number of complaints under the said Act pending in various
courts, a Working Group was constituted to review section 138
of the Negotiable Instruments Act, 1881 and make
recommendations as to what changes were needed to effectively
achieve the purpose of that section.
12
3. The recommendations of the Working Group along with
other representations from various institutions and
organisations were examined by the Government in
consultation with the Reserve Bank of India and other legal
experts, and a Bill, namely, the Negotiable Instruments
(Amendment) Bill, 2001 was introduced in the Lok Sabha on
24th July, 2001. The Bill was referred to Standing Committee
on Finance which made certain recommendations in its report
submitted to Lok Sabha in November, 2001.
4. Keeping in view the recommendations of the Standing
Committee on Finance and other representations, it has been
decided to bring out, inter alia, the following amendments in
the Negotiable Instruments Act,1881, namely:--
(i) to increase the punishment as prescribed under the Act from
one year to two years;
(ii) to increase the period for issue of notice by the payee to the
drawer from 15 days to 30 days;
(iii) to provide discretion to the court to waive the period of one
month, which has been prescribed for taking cognizance of the
case under the Act;
(iv) to prescribe procedure for dispensing with preliminary
evidence of the complainant;
(v) to prescribe procedure for servicing of summons to the
accused or witness by the court through speed post or
empanelled private couriers;
(vi) to provide for summary trial of the cases under the Act with
a view to speeding up disposal of cases;
(vii) to make the offences under the Act compoundable;
(viii) to exempt those directors from prosecution under section
141 of the Act who are nominated as directors of a company by
virtue of their holding any office or employment in the Central
13
Government or State Government or a financial corporation
owned or controlled by the Central Government, or the State
Government, as the case may be;
(ix) to provide that the Magistrate trying an offence shall have
power to pass sentence of imprisonment for a term exceeding
one year and amount of fine exceeding five thousand rupees;
(x) to make the Information Technology Act, 2000 applicable
to the Negotiable Instruments Act,1881 in relation to electronic
cheques and truncated cheques subject to such modifications
and amendments as the Central Government, in consultation
with the Reserve Bank of India, considers necessary for
carrying out the purposes of the Act, by notification in the
Official Gazette; and
(xi) to amend definitions of "bankers' books" and "certified
copy" given in the Bankers' Books Evidence Act,1891.
5. The proposed amendments in the Act are aimed at early
disposal of cases relating to dishonour of cheques, enhancing
punishment for offenders, introducing electronic image of a
truncated cheque and a cheque in the electronic form as well as
exempting an official nominee director from prosecution under
the Negotiable Instruments Act, 1881.
6. The Bill seeks to achieve the above objects."
(emphasis added)
15. Though, in these appeals, we are mainly concerned with the
provisions of section 145, it would be useful here to take a look at all the
five sections introduced by the 2002 amendment.
"143. Power of court to try cases summarily.
(1) Notwithstanding anything contained in the Code of
Criminal Procedure, 1973 (2 of 1974), all offences under this
Chapter shall be tried by a Judicial Magistrate of the first class
or by a Metropolitan Magistrate and the provisions of sections
14
262 to 265 (both inclusive) of the said Code shall, as far as may
be, apply to such trials:
Provided that in the case of any conviction in a summary
trial under this section, it shall be lawful for the Magistrate to
pass a sentence of imprisonment for a term not exceeding one
year and an amount of fine exceeding five thousand rupees;
Provided further that when at the commencement of, or in
the course of, a summary trial under this section, it appears to
the Magistrate that the nature of the case is such that a sentence
of imprisonment for a term exceeding one year may have to be
passed or that it is, for any other reason, undesirable to try the
case summarily, the Magistrate shall after hearing the parties,
record an order to that effect and thereafter recall any witness
who may have been examined and proceed to hear or rehear the
case in the manner provided by the said Code.
(2) The trial of a case under this section shall, so far as
practicable, consistently with the interests of justice, be
continued from day to day until its conclusion, unless the court
finds the adjournment of the trial beyond the following day to
be necessary for reasons to be recorded in writing.
(3) Every trial under this section shall be conducted as
expeditiously as possible and an endeavour shall be made to
conclude the trial within six months from the date of filing of
the complaint.
144. Mode of service of summons.
(1) Notwithstanding anything contained in the Code of
Criminal Procedure, 1973 (2 of 1974), and for the purposes of
this Chapter, a Magistrate issuing a summons to an accused or a
witness may direct a copy of summons to be served at the place
where such accused or witness ordinarily resides or carries on
business or personally works; for gain, by speed post or by such
courier services as are approved by a Court of Session.
(2) Where an acknowledgment purporting to be signed by the
15
accused or the witness or an endorsement purported to be made
by any person authorised by the postal department or the
courier services that the accused or the witness refused to take
delivery of summons has been received, the court issuing the
summons may declare that the summons has been duly served.
145. Evidence on affidavit.
(1) Notwithstanding anything contained in the Code of
Criminal Procedure, 1973 (2 of 1974), the evidence of the
complainant may be given by him on affidavit and may, subject
to all just exceptions be read in evidence in any enquiry, trial or
other proceeding under the said Code.
(2) The court may, if it thinks fit, and shall, on the application
of the prosecution or the accused, summon and examine any
person giving evidence on affidavit as to the facts contained
therein.
146. Bank's slip prima facie evidence of certain facts.
The court shall, in respect of every proceeding under this
Chapter, on production of bank's slip or memo having thereon
the official mark denoting that the cheque has been
dishonoured, presume the fact of dishonour of such cheque,
unless and until such fact is disproved.
147. Offences to be compoundable.
Notwithstanding anything contained in the Code of Criminal
Procedure, 1973 (2 of 1974), every offence punishable under
this Act shall be compoundable."
16. It may be noted that the provisions of sections 143, 144, 145 and 147
expressly depart from and override the provisions of the Code of Criminal
Procedure, the main body of adjective law for criminal trials. The provisions
of section 146 similarly depart from the principles of the Indian Evidence
Act. Section 143 makes it possible for the complaints under section 138 of
16
the Act to be tried in the summary manner, except, of course, for the
relatively small number of cases where the Magistrate feels that the nature of
the case is such that a sentence of imprisonment for a term exceeding one
year may have to be passed or that it is, for any other reason, undesirable to
try the case summarily. It is, however, significant that the procedure of
summary trials is adopted under section 143 subject to the qualification "as
far as possible", thus, leaving sufficient flexibility so as not to affect the
quick flow of the trial process. Even while following the procedure of
summary trials, the non-obstante clause and the expression "as far as
possible" used in section 143 coupled with the non-obstante clause in
section 145 allows for the evidence of the complainant to be given on
affidavit, that is, in the absence of the accused. This would have been
impermissible (even in a summary trial under the Code of Criminal
Procedure) in view of sections 251 and 254 and especially section 273 of the
Code. The accused, however, is fully protected, as under sub-section (2) of
section 145 he has the absolute and unqualified right to have the
complainant and any or all of his witnesses summoned for cross-
examination. Sub-section (3) of section 143 mandates that the trial would
proceed, as far as practicable, on a day-to-day basis and sub-section (4) of
the section requires the Magistrate to make the endeavour to conclude the
17
trial within six months from the date of filing of the complaint. Section 144
makes the process of service of summons simpler and cuts down the long
time ordinarily consumed in service of summons in a regular civil suit or a
criminal trial. Section 145 with its non-obstante clause, as noted above,
makes it possible for the evidence of the complainant to be taken in the
absence of the accused. But the affidavit of the complainant (or any of his
witnesses) may be read in evidence "subject to all just exceptions". In other
words, anything inadmissible in evidence, e.g., irrelevant facts or hearsay
matters would not be taken in as evidence, even though stated on affidavit.
Section 146, making a major departure from the principles of the Evidence
Act provides that the bank's slip or memo with the official mark showing
that the cheque was dishonoured would by itself give rise to the presumption
of dishonour of the cheque, unless and until that fact was disproved. Section
147 makes the offences punishable under the Act, compoundable.
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
18
procedure as expeditious as possible without in any way compromising on
the right of the accused for a fair trial.
18. Here we must take notice of the fact that cases under section 138 of
the Act have been coming in such great multitude that even the introduction
of such radical measures to make the trial procedure simplified and speedy
has been of little help and cases of dishonoured cheques continue to pile up
giving rise to an unbearable burden on the criminal court system. The Law
Commission in its report number 213 sent to the Union Minister for Law
and Justice on November 24, 2008 advocated the setting up of Fast Track
Magisterial courts for dealing with the huge pendency of dishonoured
cheque cases. In paragraph 1.5 of the report it was stated as follows:
"1.5. Over 38 lac cheque bouncing cases are pending in
various courts in the country. There are 7,66,974 cases pending
in criminal courts in Delhi at the Magisterial level as on 1st
June, 2008. Out of this huge workload, a substantial portion is
of cases under section 138 of the Negotiable Instruments Act
which alone count for 5,14,433 cases (cheque bouncing).
According to Gujarat High Court sources, there are
approximately two lac cheque bouncing cases all over t he
State, with the majority of them (84,000 cases) in Ahmedabad,
followed by Surat, Vadodara and Rajkot. 73,000 cases were
filed under section 138 of the Negotiable Instruments Act
(cheque bouncing) on a single day by a private telecom
company before a Bangalore court, informed the Chief Justice
of India, K. G. Balakrishnan, urging the Government to appoint
more judges to deal with 1.8 crore pending cases in the country.
The number of complaints which are pending in Bombay
19
courts1 seriously cast shadow on the credibility of our trade,
commerce and business. Immediate steps have to be taken by
all concerned to ensure restoration of the credibility of trade,
commerce and business."
19. The situation arising from the mounting arrears is so grave that in the
`Vision Statement' presented by the Union Minister for Law and Justice to
the Chief Justice of India in course of the National Consultation for
strengthening the Judiciary towards reducing pendency and delays held on
October 24, 2009, cases of dishonoured cheques were cited among one of
the major bottlenecks in the criminal justice system. In paragraph 2 under
the heading `the Action Plan' it was stated as follows:
"2. Identification of Bottlenecks: Clearing the System
1. Studies have shown that cases under certain statutes and
area of law are choking dockets of magisterial and
specialised courts, and the same need to be identified.
2. Bottlenecks shall be identified as follows:
a) Matrimonial cases.
b) Cases under section 498A of the Indian Penal
Code, 1860.
c) Cases under section 143 of the Negotiable
Instrument Act, 1881.
d) to (i) xxxxxxxxxx
1
On the date of the report, there were 5,91,818 cases pending in sub-ordinate courts of State of
Maharashtra, 1,57,191cases pending in the sub-ordinate courts of State of Karnataka, 1,10,311 cases
pending in the sub-ordinate courts of State of Kerala and 5,14,433 cases in the sub-ordinate courts of the
State of Delhi under Section 138 of the Negotiable Instrument Act.
20
20. Once it is realized that sections 143 to 147 were designed especially to
lay down a much simplified procedure for the trial of dishonoured cheque
cases with the sole object that the trial of those cases should follow a course
even swifter than a summary trial and once it is seen that even the special
procedure failed to effectively and expeditiously handle the vast multitude of
cases coming to the court, the claim of the accused that on being summoned
under section 145(2), the complainant or any of his witnesses whose
evidence is given on affidavit must be made to depose in examination-in-
chief all over again plainly appears to be a demand for meaningless
duplication, apparently aimed at delaying the trial.
21. Nevertheless, the submissions made on behalf of the parties must be
taken note of and properly dealt with. Mr Ranjit Kumar, learned Senior
Advocate, appearing for the appellant in appeal arising from SLP (Crl.) No.
4760/2006 pointed out that sub-section (2) of section 145 uses both the
words, "may" (with reference to the court) and "shall" (with reference to the
prosecution or the accused). It was, therefore, beyond doubt that in the event
an application is made by the accused, the court would be obliged to
summon the person giving evidence on affidavit in terms of section 145(1)
without having any discretion in the matter. There can be no disagreement
with this part of the submission but the question is when the person who has
21
given his evidence on affidavit appears in court, whether it is also open to
the accused to insist that before cross-examining him as to the facts stated in
the affidavit he must first depose in examination-in-chief and be required to
verbally state what is already said in the affidavit. Mr. Ranjit Kumar referred
to section 137 of the Indian Evidence Act, that defines "examination-in-
chief", "cross-examination" and "re-examination" and on that basis sought
to argue that the word "examine" occurring in section 145(2) must be
construed to mean all the three kinds of examination of a witness. This,
according to him, coupled with the use of the word "shall" with reference to
the application made by the accused made it quite clear that a person giving
his evidence on affidavit, on being summoned under section 145(2) at the
instance of the accused must begin his deposition with examination-in-chief,
before he may be cross-examined by the accused. In this regard he submitted
that section 145 did not override the Evidence Act or the Negotiable
Instruments Act or any other law except the Code of Criminal Procedure. He
further submitted that the plain language of section 145(2) was clear and
unambiguous and was capable of only one meaning and, therefore, the
provision must be understood in its literal sense and the High Court was in
error in resorting to purposive interpretation of the provision. In support of
the submission he relied upon decisions of this court in Dental Council of
22
India vs. Hari Prakash and Ors., (2001) 8 SCC 61 and Nathi Devi vs. Radha
Devi, (2005) 2 SCC 271. Mr. Siddharth Bhatnagar, learned counsel for the
appellant in the appeal arising from SLP (Crl.) No. 1106/2007 also joined
Mr. Ranjit Kumar in the submission based on literal interpretation. He also
submitted that ordinarily the rule of literal construction should not be
departed from, particularly when the words of the statute are clear and
unambiguous. He relied upon the decision in Raghunath Rai Bareja vs.
Punjab National Bank, (2007) 2 SCC 230.
22. We are completely unable to appreciate the submission. The plea for a
literal interpretation of section 145(2) is based on the unfounded assumption
that the language of the section clearly says that the person giving his
evidence on affidavit, on being summoned at the instance of the accused
must start his deposition in court with examination-in-chief. We find nothing
in section 145(2) to suggest that. We may also make it clear that section 137
of the Evidence Act does not define "examine" to mean and include the
three kinds of examination of a witness; it simply defines "examination-in-
chief", "cross-examination" and "re-examination". What section 145(2) of
the Act says is simply this. The court may, at its discretion, call a person
giving his evidence on affidavit and examine him as to the facts contained
therein. But if an application is made either by the prosecution or by the
23
accused the court must call the person giving his evidence on affidavit, again
to be examined as to the facts contained therein. What would be the extent
and nature of examination in each case is a different matter and that has to
be reasonably construed in light of the provision of section 145(1) and
having regard to the object and purpose of the entire scheme of sections 143
to 146. The scheme of sections 143 to 146 does not in any way affect the
judge's powers under section 165 of the Evidence Act. As a matter of fact,
section 145(2) expressly provides that the court may, if it thinks fit, summon
and examine any person giving evidence on affidavit. But how would the
person giving evidence on affidavit be examined, on being summoned to
appear before the court on the application made by the prosecution or the
accused? The affidavit of the person so summoned that is already on the
record is obviously in the nature of examination-in-chief. Hence, on being
summoned on the application made by the accused the deponent of the
affidavit (the complainant or any of his witnesses) can only be subjected to
cross-examination as to the facts stated in the affidavit. In so far as the
prosecution is concerned the occasion to summon any of its witnesses who
has given his evidence on affidavit may arise in two ways. The
prosecution may summon a person who has given his evidence on
affidavit and has been cross-examined for "re-examination". The
24
prosecution may also have to summon a witness whose evidence is given
on affidavit in case objection is raised by the defence regarding the
validity and/or sufficiency of proof of some document(s) submitted along
with the affidavit. In that event the witness may be summoned to appear
before the court to cure the defect and to have the document(s) properly
proved by following the correct legal mode. This appears to us as the
simple answer to the above question and the correct legal position. Any
other meaning given to sub-section (2) of section 145, as suggested by Mr.
Ranjit Kumar would make the provision of section 145(1) nugatory and
would completely defeat the very scheme of trial as designed under sections
143 to 147.
23. Mr. Ranjit Kumar next submitted that section 145(2) was identical to
section 296(2) of the Code of Criminal Procedure and this court, in its
decision in State of Punjab vs. Naib Din, (2001) 8 SCC 578 dealing with
section 296(2) of the Code made the following observation:
"8. ....If any party to a lis wishes to examine the deponent of the
affidavit it is open to him to make an application before the
court that he requires the deponent to be examined or cross-
examined in court. This is provided in sub-section (2) of section
296 of the Code. When any such application is made it is the
duty of the court to call such person to the court for the purpose
of being examined."
25
24. Mr. Siddharth Bhatnagar representing the appellant in the appeal
arising from SLP (Crl.) No.1106/2007 also joined Mr. Ranjit Kumar in the
submission based on section 296(2) of Code. Mr. Bhatnagar submitted that
since section 145(2) is identical to section 296(2) of the Code, it should be
interpreted in light of the legislative history of section 296(2) and he tried to
take us into the details of the legislative history of section 296 of the Code.
25. In our view the submission is wholly without merit. Neither section
296(2) of the Code nor the decision in Naib Din has any relevance or
application to the trial concerning a dishonoured cheque under sections 143
to 146 of the Act. The decision in Naib Din was rendered in a totally
different context and the issue before the court was not, whether on being
summoned on the application made by the accused, the person giving
evidence on affidavit must begin his deposition with examination-in-chief.
The appellants are reading into the passage from the decision in Naib Din
something that was not said by the court. Moreover, the crucial difference
between section 296(2) of the Code and section 145(2) of the Act is that the
former deals with the evidence of a formal nature whereas under the latter
provision, all evidences including substantive evidence may be given on
affidavit. Section 296 is part of the elaborate procedure of a regular trial
under the Code while the whole object of section 145(2) of the Act is to
26
design a much simpler and swifter trial procedure departing from the
elaborate and time consuming trial procedure of the Code. Hence,
notwithstanding the apparent verbal similarity between section 145(2) of the
Act and section 296(2) of the Code, it would be completely wrong to
interpret the true scope and meaning of the one in the light of the other.
Neither the legislative history of 296(2) nor any decision on that section can
persuade us to hold that under section 145(2) of the Act, on being
summoned at the instance of the accused the complainant or any of his
witnesses should be first made to depose in examination-in-chief before
cross-examination.
26. Mr. Ranjit Kumar next submitted that in giving evidence on affidavit,
the deponent (the complainant or any of his witnesses) can introduce hearsay
or irrelevant facts in evidence to which the accused could have objected if
the deposition was made in court as examination-in-chief. Hence, the
accused must have the right to call the complainant (or his witness giving
evidence on affidavit) into the witness box for examination-in-chief so as to
get the inadmissible parts in the affidavit excluded from his evidence. Once
again the submission is devoid of merit. It is noted above that the evidence
given on affidavit by the complainant is "subject to all just exceptions". This
simply means that the evidence given on affidavit must be admissible and it
27
must not include inadmissible materials such as facts not relevant to the
issue or any hearsay statements. In case the complainant's affidavits contain
statements that are not admissible in evidence it is always open to the
accused to point those out to the court and the court would then surely deal
with the objections in accordance with law.
27. Mr. Ranjit Kumar lastly submitted that when the complainant gives
his evidence on affidavit, then the documents produced along with the
affidavit(s) are not proved automatically and unless the accused admits those
documents under section 294 of the Code of Criminal Procedure the
documents must be proved by oral testimony. We find no substance in this
submission either and we see no reason why the affidavits should not also
contain the formal proof of the enclosed documents. In case, however, the
accused raises any objections with regard to the validity or sufficiency of
proof of the documents submitted along with the affidavit and if the
objections are sustained by the court it is always open to the prosecution to
have the concerned witness summoned and get the lacuna in the proof of the
documents corrected.
28. Mr. Ranjit Kumar also made a feeble attempt to contend that the
provisions of sections 143 to 147 inserted in the Act with effect from
February 6, 2003 would operate prospectively and would not apply to cases
28
that were pending on that date. The High Court has considered the issue in
great detail and has rightly taken the view that the provisions of sections 143
to 147 do not take away any substantive rights of the accused. Those
provisions are not substantive but procedural in nature and would, therefore,
undoubtedly, apply to the cases that were pending on the date the provisions
came into force. We are fully in agreement and in order to buttress the view
taken by the High Court we will only refer to a decision of this court.
29. In Gurbachan Singh vs. Satpal Singh and Ors., 1990 (1) SCC 445, the
court was called upon to consider whether section 113A of the Evidence Act
that created a presumption as to abetment of a suicide by a married woman
would operate retrospectively or prospectively. The court held:
"37. The provisions of the said section do not create any new
offence and as such it does not create any substantial right but it
is merely a matter of procedure of evidence and as such it is
retrospective and will be applicable to this case. It is profitable
to refer in this connection to Halsbury's Laws of England,
Fourth Edition, Volume 44 page 570 wherein it has been stated
that:
"The general rule is that all statutes, other than those
which are merely declaratory or which relate only to
matters of procedure or of evidence, are prima facie
prospective, and retrospective effect is not to be given to
them unless, by express words or necessary implications,
it appears that this was the intention of the legislature..."
38. It has also been stated in the said volume of Halsbury's
Laws of England at page 574 that:
29
"The presumption against retrospection does not apply to
legislation concerned merely with matters of procedure
or of evidence; on the contrary, provisions of that nature
are to be construed as retrospective unless there is a clear
indication that such was not the intention of
Parliament.""
(emphasis
added)
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...."
30
Then 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."
31. On this issue, we are afraid that the High Court overreached itself and
took a course that amounts to taking-over the legislative functions.
32. On a bare reading of section 143 it is clear that the legislature
provided for the complainant to give his evidence on affidavit and did not
provide for the accused to similarly do so. But the High Court thought that
not mentioning the accused along with the complainant in sub-section (1) of
section 145 was merely an omission by the legislature that it could fill up
without difficulty. Even though the legislature in their wisdom did not deem
it proper to incorporate the word `accused' with the word `complainant' in
section 145(1), it did not mean that the Magistrate could not allow the
accused to give his evidence on affidavit by applying the same analogy
unless there was a just and reasonable ground to refuse such permission.
There are two errors apparent in the reasoning of the High Court. First, if the
legislature in their wisdom did not think "it proper to incorporate a word
31
`accused' with the word `complainant' in section 145(1)......", it was not
open to the High Court to fill up the self perceived blank. Secondly, the
High Court was in error in drawing an analogy between the evidences of the
complainant and the accused in a case of dishonoured cheque. The case of
the complainant in a complaint under section 138 of the Act would be based
largely on documentary evidence. The accused, on the other hand, in a large
number of cases, may not lead any evidence at all and let the prosecution
stand or fall on its own evidence. In case the defence does lead any
evidence, the nature of its evidence may not be necessarily documentary; in
all likelihood the defence would lead other kinds of evidences to rebut the
presumption that the issuance of the cheque was not in the discharge of any
debt or liability. This is the basic difference between the nature of the
complainant's evidence and the evidence of the accused in a case of
dishonoured cheque. It is, therefore, wrong to equate the defence evidence
with the complainant's evidence and to extend the same option to the
accused as well.
33. Coming back to the fist error in the High Court's reasoning, in the
guise of interpretation it is not permissible for the court to make additions
in the law and to read into it something that is just not there. In Union
of India and Anr. vs. Deoki Nandan Aggarwal, 1992 Supp. (1) SCC
32
323, this court sounded the note of caution against the court usurping the
role of legislator in the guise of interpretation. The court observed:
"14. ...it is not the duty of the court either to enlarge the scope
of the legislation or the intention of the legislature when the
language of the provision is plain and unambiguous. The court
cannot rewrite, recast or reframe the legislation for the very
good reason that it has no power to legislate. The power to
legislate has not been conferred on the courts. The court cannot
add words to a statute or read words into it which are not there.
Assuming there is a defect or an omission in the words used by
the legislature the court could not go to its aid to correct or
make up the deficiency. Courts shall decide what the law is and
not what it should be. The court of course adopts a construction
which will carry out the obvious intention of the legislature but
could not legislate itself. But to invoke judicial activism to set
at naught the legislative judgment is subversive of the
constitutional harmony and comity of instrumentalities...."
34. In Raghunath Rai Bareja and Anr. vs. Punjab National Bank and
Ors., (2007) 2 SCC 230 while observing that it is the task of the elected
representatives of the people to legislate and not that of the Judge even if it
results in hardship or inconvenience, Supreme Court quoted in affirmation,
the observation of Justice Frankfurter of the US Supreme Court which is as
follows:
"41. As stated by Justice Frankfurter of the US Supreme Court
(see "Of Law and Men: Papers and addresses of Felix
Frankfurter")
"Even within their area of choice the courts are not at
large. They are confined by the nature and scope of the
judicial function in its particular exercise in the field of
interpretation. They are under the constraints imposed by
the judicial function in our democratic society. As a
33
matter of verbal recognition certainly, no one will
gainsay that the function in construing a statute is to
ascertain the meaning of words used by the legislator. To
go beyond it is to usurp a power which our democracy
has lodged in its elected legislature. The great judges
have constantly admonished there bretheren of the need
for discipline in observing the limitations. A judge must
not rewrite a statute, neither to enlarge nor to contract it.
Whatever temptations the statesmanship of policy-
making might wisely suggest, construction must eschew
interpolation and evisceration. He must not read in by
way of creation. He must not read out except to avoid
patent nonsense or internal contradiction."
35. In Duport Steels Ltd. vs. Sirs, [1980] 1 All ER 529, 534, Lord
Scarman expounded the legal position in the following words:
"But in the field of statute law the judge must be obedient to the
will of Parliament as expressed in its enactments. In this field
Parliament makes and unmakes the law. The judge's duty is to
interpret and to apply the law not to change it to meet the
judge's idea of what justice requires. Interpretation does, of
course, imply in the interpreter a power of choice where
differing construction are possible. But our law require the
judge to choose the construction which in his judgment best
meets the legislative purpose of the enactment. If the result be
unjust but inevitable, the judge may say so and invite
Parliament to reconsider its provision. But he must not deny the
statute."
36. In light of the above we have no hesitation in holding that the High
Court was in error in taking the view, that on a request made by the accused
the magistrate may allow him to tender his evidence on affidavit and
consequently, we set aside the direction as contained in sub-paragraph (r) of
34
paragraph 45 of the High Court judgment. The appeal arising from SLP
(Crl.) No. 3915/2006 is allowed.
37. All the remaining six appeals are dismissed.
38. There shall be no order as to costs.
....................................J
(TARUN CHATTERJEE)
.....................................J
(AFTAB ALAM)
New Delhi,
January 11, 2010
