Court Reaffirms No Requirement for Pre-Cognizance Notice in N.I. Act Cases as per Supreme Court's Settled Law
In a significant ruling, the Gauhati High Court has quashed an order issued by the Judicial Magistrate, First Class, Kamrup [M], Guwahati, which called for a pre-cognizance notice to be issued to the accused in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, 1881. The decision, rendered by Justice Manish Choudhury, aligns with the Supreme Court's precedent that no such notice is required under the special enactment of the N.I. Act.
The case, PD Savera LLP v. Galacon Infrastructure And Projects Pvt Ltd and others, involved a cheque for Rs. 10,00,000 issued by Galacon Infrastructure that was dishonoured upon presentation. The complainant, PD Savera LLP, had filed a complaint against the company and its directors, holding them vicariously liable under the N.I. Act.
The Trial Court had initially accepted the complaint and supporting documents but controversially ordered a pre-cognizance notice to the accused based on Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023. However, the High Court found this decision to be inconsistent with the Supreme Court's judgment in Sanjabij Tari v. Kishore S. Borcar, which clarified that no pre-cognizance notice is necessary for complaints filed under Section 138 of the N.I. Act.
Justice Choudhury emphasized that the N.I. Act, being a special enactment, does not require adherence to the procedural step of issuing a pre-cognizance notice, as outlined in Section 223 of the BNSS, 2023. Consequently, the High Court set aside the order of the Trial Court, directing it to take a fresh decision on the matter of cognizance without the issuance of such notice.
The ruling reinforces the legal understanding that the procedural requirements under general laws do not apply to cases under special enactments like the N.I. Act. The High Court's decision is expected to streamline the process for cheque dishonour cases, ensuring that they proceed without unnecessary procedural delays.
Bottom Line:
Negotiable Instruments Act - No requirement to issue notice to accused at pre-cognizance stage in cases under Section 138 of N.I. Act as per settled law by the Supreme Court.
Statutory provision(s): Negotiable Instruments Act, 1881 Section 138, Bharatiya Nagarik Suraksha Sanhita, 2023 Section 223(1)
