Tuesday, 23 September 2014

Whether concept of unjust enrichment can be applied in case of acquittal of accused in case of dishonour of cheque?



  Scope   in 
writ   jurisdiction   can   not   be   benedicted   upon   the 

complainant,   as   accused   was   forced,   by   virtue   of 
conviction by learned Judicial Magistrate F.C., to 
pay compensation under Section   357(3) of Cr.P.C. 
Since accused was acquitted in the proceedings, no 
law   can   force   him   to   pay   the   amount   of 
compensation.   Court   should   not   confer   benefits 
impelled   by   sympathetic   consideration,   devoid   of 
law.  

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
BENCH AT AURANGABAD
Ganesh Gopal Mahajan,

CRIMINAL WRIT PETITION NO.177 OF 2013 

Versus

Dhanraj Pandharinath Sapkale,
   
CORAM   :  K.U.CHANDIWAL, J.
DATED   :  MARCH 1, 2013
Citation;2014(5) MHLJ 305

Heard.   Rule,   made   returnable   forthwith. 
Parties are referred with their original status as 
complainant and accused.

In   an   Appeal   against   conviction   for   offence 
2]

under   Section   138   of   Negotiable   Instruments   Act, 
3]
the appellate Court allowed the appeal. 
On   14th  February,   2013,   matter   was   argued 
extensively.  
  However,   Mr.Bhokarikar   felt, 
considering the scope and nature of Appellate order 
and the relief which was sought from this Court, to 
convert   the   Criminal   Revision   Application   into 

Criminal   Writ   petition.     Accordingly,   he   was 
4]
permitted to do so.  
Learned   Sessions   Judge   found   that   on   22nd 
November,   2002,  there   was   intimation   of  dishonour 
of   cheque   to   the   complainant.     The   transaction 
being   prior   to   6th  February,   2003   (prior   to 
amendment   in   Negotiable   Instruments   Act),   the 
complainant was expected to serve statutory notice 
within   15   days.     By   calculation,   it   should   have 
been   upto   7th  December,   2002,   however,   notice   was 
dispatched on 9th  December, 2002.   This is more so 
indicated   on   the   postal   receipt   produced   in 
evidence.     Learned   Sessions,   on   these   factual 
aspects, held that the notice was beyond the period 
of limitation and allowed the Appeal. 
5]
Effect   of   Section   138   of   Negotiable 

Instruments Act and penalty or conviction, as the 
case   may   be,   comes   into   operation   only   on   strict 
adherence of condition in clauses (a), (b) and (c) 
of the proviso.   The legal position was explained 
in   the   matter   of  Sivakumar   Vs.   Natarajan,  
2009(5)Bom.C.R.  271  by   observing   in  paragraph   10, 
that,   by   reason   of   provisions   of   Negotiable 
Instruments Act, a legal presumption in regard to 
commission of a crime has been raised.  The proviso 

appended   thereto,   however,   states   that   nothing 
contained in the main provision would apply unless 
conditions   specified   in   Clauses   (a),   (b)   and   (c) 
thereof   are   complied   with.     Clauses   (a),   (b)   and 
(c) of the proviso, therefore, lay down conditions 
precedent for applicability of the main provision. 
Section   138   of   the   Act   being   penal   in   nature, 
indisputably,   warrants   strict   construction.     The 
Apex Court also considered earlier pronouncement in 
the matter of  M/s.Harman Electronics (P) Ltd. and  
anr.   Vs.   M/s.  National   Panasonic   India   Ltd.,  
2008(16)SCALE   317  wherein,   Hon’ble   Supreme   Court 
held :

The   proviso   appended   thereto 
imposes certain conditions before a  
complaint   petition   can   be 
entertained.”

This   legal   position   enumerated,   cannot   be 
6]

overlooked   though   learned   counsel   made   passionate 
submission   that   there   was   business   relations 
between   the   parties,   or   that   the   liability   has 
been established.   

available to the complainant. The   learned   counsel   for   complainant,   having 
7]
converted   the   Revision   Application   into   Writ 

Petition,   feels   that   the   Rule   of   equity   will   be available to the complainant. The   learned   counsel   for   complainant,   having   For such purposes, 
reliance was placed to the judgment in the matter 
of  Mrs.Manju   Bhatia   and   another   Vs.   New   Delhi 
Municipal   Council   and   another,   AIR   1998   SC   223.  
In   the   said   case,   a   building   was   constructed 
illegally,   sold   to   some   flat   owners,   it   was 
demolished   since   it   was   unauthorised.     The   flat 
owners were unaware of illegal construction.   The 
Supreme   Court   held   that   they   were   entitled   to   be 
re­compensated for the loss suffered by them.  
8]
In the  matter of  Panchugopal Barua Barua and 
ors.   Vs.   Umesh   Chandra   Goswami   and   ors,   AIR   1997  
SC   1041,  the   Supreme   Court   was   dealing   with   a 
Second   Appeal,   its   tenability   and   observed, 
equitable jurisdiction must be exercised so as to 
prevent   perpetration   of   legal   fraud,   promote 

honesty   and   good   faith.     Party   seeking   relief   in 
equity must come to the Court with clean hands.  
There   is   no   contest   on   legal   preposition 
indicated   by   Hon’ble   Supreme   Court.     Fraud 
unravals everything.  
The   facts,   in   this   case,   does   not   project   a 
9]
fraud   played   by   the   accused   to   induce   the 

complainant,   to   part   with   his   money   or   with 
dishonest intention.  The proceedings was strictly 
under banner of 138 of Negotiable Instruments Act. 
Consequently,     parameters   indicted   under   Sections 
138   or   139   thereof   will   be   applicable   with 
available   presumptions   under   Section   119   or 
Section 120. Law is hard, but it is the law. The 
compensation   discussed   in   Section   117   of   the   Act 
is   of   altogether   different   context.  
  The 
compensation   in   the   penal   statute   concerning 
offence   under   Section   138   of   Negotiable 
Instruments   Act,   is   taken   care   by   Section   357(3) 
of Cr.P.C. 
10] Learned   counsel   has   placed   reliance   to   the 
judgment   of   the   Supreme   Court   decided   by   three 
Judges   in   the   matter   of  MSR   Leathers   Vs.   S. 
Palaniappan   and   anr,   2012   STPL(Web)   527   SC.    The 

three   Judges’   bench   has   observed,   issuance   of 
earlier notice, if there is cause of action to the 
complainant,   will   not   take   away   complainant’s 
rights.     No   such   situation   has   emerged   for   the 
complainant in the present case.   He had no cause 
of   action,   nor   he   has   exhausted   his   remedies 
within the stipulated time as prevailing prior to 
2003 amendments, strictly in sense of clauses (a), 
(b)   and   (c)   of   proviso   to   Section   138   of 

Negotiable Instruments Act. 
11] In M/s.Mandvi Co­op. Bank Ltd.  Vs. Nimesh B. 
Thakare, AIR 2010 SC 1402,  was recording evidence 
on   affidavit   in   terms   of   Section   145(1)   of 
Negotiable   Instruments   Act   and   whether,   evidence­
in­chief   should  necessarily   be   recorded   or   if 
affidavit   is   filed,   the   accused   has   to   cross­
examine.  The scope of Section 137 of Evidence Act 
was also discussed by the Supreme Court.   No such 
situation has emerged in the facts  at hand.  
12] Taking   overall   survey   of   the   matter,   I   find 
even   if,   Revision   Application   is   converted   into 
Writ   Petition,   basically,   since   acquittal   is 
challenged by the complainant, it should have been 
in   terms   of   Section   378(4)   of   Cr.P.C.     Scope   in 
writ   jurisdiction   can   not   be   benedicted   upon   the 

complainant,   as   accused   was   forced,   by   virtue   of 
conviction by learned Judicial Magistrate F.C., to 
pay compensation under Section   357(3) of Cr.P.C. 
Since accused was acquitted in the proceedings, no 
law   can   force   him   to   pay   the   amount   of 
compensation.   Court   should   not   confer   benefits 
impelled   by   sympathetic   consideration,   devoid   of 
law.   Writ Petition lacks merit, dismissed.   Rule 

discharged.
  
[K.U.CHANDIWAL, J.]

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