Dishnonour of Cheque : Dismissal of complaint for want of prosecution results in denial of substantive justice

Bombay High Court Revives Dismissed Complaint in Negotiable Instruments Case. Court Emphasizes Principles of Natural Justice; Orders Re-examination of Case Dismissed for Non-Prosecution

In a significant decision underscoring the importance of natural justice, the Bombay High Court's Nagpur Bench, presided over by Justice M.M. Nerlikar, has set aside the dismissal of a complaint filed under Section 138 of the Negotiable Instruments Act, 1881, and remanded the case for fresh adjudication. The complaint, originally dismissed by the Judicial Magistrate First Class, Sadak Arjuni, was reinstated, emphasizing the need for substantive justice over strict procedural adherence.

The case, Sanjay v. Ghanshyambhai, revolved around allegations that Ghanshyambhai, the respondent, had failed to repay Rs. 5,00,000 borrowed from Sanjay, the appellant, leading to the issuance of dishonored cheques. The matter had reached the cross-examination stage, but was dismissed for non-prosecution after Sanjay failed to appear in court due to genuine medical reasons affecting him and his wife.

Justice Nerlikar highlighted the principles of natural justice, arguing that the dismissal of the complaint on technical grounds without adjudicating on merits could deny substantive justice. The judgment referenced the case of Shri Shaikh Akbar Talab v. Shri A.G. Pushpakaran, where similar dismissal under Section 256 of the Criminal Procedure Code was overturned to ensure fair opportunity for both parties to present their case on merits.

The High Court's decision reflects a commitment to ensuring judicial processes are fair, particularly when evidence has been filed and a case is at an advanced stage. The Court noted that dismissing the complaint merely due to absence on a few occasions could lead to a miscarriage of justice, thwarting the objectives of Section 138 of the Negotiable Instruments Act.

The order allows the reinstatement of Summary Criminal Case No. 68/2018, directing the parties to appear before the Trial Court on 24th November 2025. The appellant is instructed to avoid further adjournments and cooperate with the proceedings, with costs of Rs. 10,000 imposed on him to be paid to the respondent.

This judgment underscores the judiciary's role in balancing procedural rigor with the broader pursuit of justice, ensuring that litigants are not unfairly prejudiced by technicalities.

Statutory provision(s): Code of Criminal Procedure, 1973 Section 256, Negotiable Instruments Act, 1881 Section 138

Sanjay v. Ghanshyambhai, (Bombay)(Nagpur Bench) : Law Finder Doc Id # 2795530