Case title:
AJITSINH CHEHUJI RATHOD VERSUS STATE OF GUJARAT & ANR.
Date of Order:
January 29, 2024
Bench:
Justice B.R. GAVAI
Justice SANDEEP MEHTA
Parties:
AJITSINH CHEHUJI RATHOD - APPELLANT
STATE OF GUJARAT & ANOTHER - RESPONDENT(S)
SUBJECT
- The appellant's special leave appeal challenges the High Court of Gujarat's rejection of Criminal Miscellaneous Application No. 17933, filed against the appellant for violating Section 138 of the Negotiable Instruments Act, 1881, for allegedly issuing a Rs. 10 lakh cheque.
- The Supreme Court ruled that the challenged directives were not inherently flawed and did not need interference. The appellant could have obtained a certified copy of his signatures from the bank and requested a bank official to provide evidence, but did not question the official, indicating a mismatch of signature. The appellate court ruled that the application was rightfully rejected, and any pending applications were disposed of.
IMPORTANT PROVISIONS
- Section 482 and Section 391 of the Code of Criminal Procedure, 1973.
- Section 138 of the Negotiable Instruments Act, 1881.
OVERVIEW
- The appellant was prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for dishonoured a Rs. 10 lakh cheque for complainant Shri Mahadevsinh Cahndaasinh Champavat. During the trial, the appellant applied for a handwriting expert to compare the cheque and signature, claiming his signatures were forged.
- The trial court rejected an application aimed at delaying the trial, stating that the matter was at the stage of defense and the accused could lead evidence to prove his claim. The order passed by the trial court was not challenged further and attained finality. The accused appellant was convicted in a criminal appeal, which he filed under Section 391 CrPC for additional evidence and a direction to obtain the opinion of a handwriting expert after comparing his admitted signature with the disputed cheque.
- He also requested the summoning of a Post Office officer to prove the defense theory that the notice under Section 138 of the NI Act was never received.
- The appellant's application was rejected by the Principal Sessions Judge, Gandhinagar, and later filed with the High Court. The appeal is challenging the dismissal of the application. The court has considered the appellant's submissions and the impugned order, stating that power to record additional evidence under Section 391 CrPC should only be exercised when necessary, and nonrecording may lead to justice failure.
- The Principal Sessions Judge in Gandhinagar noted that the appellant examined the Bank of Baroda witness during the trial but not asked a single question about the authenticity of the signatures on the cheque. The reason for the unpaid cheque was "funds insufficient and account dormant".
ISSUES RAISED
- Whether there is a case for the dis honouring of the cheque?
JUDGEMENT ANALYSIS
- Section 118 sub-clause (e) of the NI Act assumes indorsements on negotiable instruments are genuine. The holder of the cheque, the complainant, is presumed to have genuine indorsements. If the accused rebuts, they must provide evidence. A certified copy of a bank's document can be admissible without formal proof under the Bankers' Books Evidence Act, 1891.
- The appellant could have obtained a certified copy of his signatures from the bank and requested a bank official to provide evidence. However, he did not question the official, indicating a mismatch of signature. The appellate court was not required to assist the appellant in collecting defense evidence, as the NI Act presumes the appellant's innocence.
- The appellant applied for a handwriting expert's signature comparison on a cheque, which was rejected by the trial court. The appellant's allegation of not receiving a notice under Section 138 of the NI Act was not considered, and the appellate court ruled that the application was rightfully rejected.
CONCLUSION
The Supreme Court ruled that the challenged directives were not inherently flawed and did not need interference. The appeal was denied for lack of merit. In addition, any pending applications were dispo
