- In M/s. A. Seating & Others v. M/s. Nandini Modulars (2021), Justice HP Sandesh observed that the Appellate court has the authority to remand the case for a new hearing on the matter of condonation of delay under Section 142(b) of the Act if the accused party fails to raise the ground of delay in filing the complaint before the court of the first instance under Section 138 of the Negotiable Instruments Act. Furthermore, the complainant's case cannot be dismissed only due to a delay.
- In this case, the petitioners were given an undertaking by the accused, stating the accused would discharge the amount of Rs.13,58,921/- within 15 days and issued four cheques as security to the said loan amount. On presenting those cheques, the same was dishonoured. Therefore, a case was filed in which the petitioners did not plead guilty. However, after considering the evidence, the trial court convicted the petitioners. Thereafter, a revised petition to overturn the Trial Court's judgment was filed in the Hon'ble HC to set aside the decision of the Appellate Court, remanding the case to the Trial Court. The Trial Court's ruling upheld the petitioner's conviction under Section 138 of the Negotiable Instruments Act. Following this, the appellate court remanded the case to reconsider it, allowing the complainant to file the necessary application for condonation of delay. Additionally, the Trial Court was directed to decide the application, thus setting aside the Trial Court's order of conviction and sentence.
- Section 138 of the Negotiable Instruments Act, 1881 specifies the conditions in which a case for cheque dishonour can be brought. It stipulates that a check must be delivered to the bank within 6 months of the day it was drawn or during the validity term of the check, whichever comes first. In Harman Electronics Ltd. v. National Panasonic India Ltd. [(2009) 1 SCC 720], it was decided that the geographical jurisdiction of an offense under Section 138 of the Negotiable Instruments Act, 1881 is controlled by Section 177 of the Criminal Procedure Code, 1973.
- Section 142(b) in The Negotiable Instruments Act, 1881 states that the complaint must be filed within one month of the day on which the cause of action arises.
- In Pawan Kumar Ralli Vs. Maninder Singh Narula (2014), the High Court invalidated the appellant's criminal proceedings against the respondent under Section 138 of the Negotiable Instruments Act, 1881.
- After considering the aforementioned cases and hearing both sides, the Hon'ble court determined that the accused would have to have submitted an application for delay condonation before the trial court to use such a defence. Furthermore, the trial court has the jurisdiction to order the complainant to file an application for delay condonation in the event of a delay. Finally, the Hon'ble court found that the 2003 amendment to section 142 of the Act was made to alleviate the complainant's burden. Furthermore, if the court did not examine the proviso of section 142(b) of the NI Act, which affirms the court's competence to condone the delay, the whole aim of Parliament would be undermined.
- Therefore,the petition was dismissed by the Hon'ble Court.
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