Supreme Court: Section 258 of the Cr.P.C. is not applicable to complaints under Section 138 NI Act, no inherent power of Trial Courts to review or recall the issue of summons

The SC on April 16, 2021 {In Re: EXPEDITIOUS TRIAL OF CASES UNDER SECTION 138 OF N.I. ACT 1881} held that there is no inherent power of Trial Courts to review or recall the issue of summons. However, it was held that this does not affect the power of the Trial Court under Section 322 of the Cr.P.C. to revisit the order of issue of process in case it is brought to the court’s notice that it lacks jurisdiction to try the complaint. 

It was also held by the Constitution Bench, comprising of Chief Justice S. A. BOBDE, Justice L. NAGESWARA RAO, Justice B. R. GAVAI, Justice A. S. BOPANNA and Justice S. RAVINDRA BHAT that Section 258 of the Cr.P.C. is not applicable to complaints under Section 138 of the Act and findings to the contrary in Meters Instruments Private Limited and Another v. Kanchan Mehta (2018) 1 SCC 560 do not lay down correct law. 

It was held by the SC that the Magistrates to record reasons before converting trial of complaints under Section 138 of the Act from summary trial to summons trial. It was further held that Inquiry shall be conducted on receipt of complaints under Section 138 of the Act to arrive at sufficient grounds to proceed against the accused, when such accused resides beyond the territorial jurisdiction of the court. However, it was held that for the conduct of inquiry under Section 202 of the Code, evidence of witnesses on behalf of the complainant shall be permitted to be taken on affidavit. In suitable cases, the Magistrate can restrict the inquiry to examination of documents without insisting for examination of witnesses.

Further, the High Courts were also requested by the SC to issue practice directions to the Trial Courts to treat service of summons in one complaint under Section 138 forming part of a transaction, as deemed service in respect of all the complaints filed before the same court relating to dishonour of cheques issued as part of the said transaction.