Lately a message is in circulation, with a link to an Order passed by Mr. Justice P. N. Prakash, in the social media. The message reads as follows;

“You can file a criminal case [Private Complaint] in the Court on a returned Cheque under Sections 420, 406 and 417 of IPC. No need of 138 Limitation Act. Return Memo showing Account closed is sufficient to file a criminal case, Orders High Court,” the text reads.

The sorry state of affairs is that the Order was interpreted wrongly! Faqsonlaw being cautious on such issues is attempting to set right the social media message, hence this piece of note.

Before we delve on the law connecting it, please understand the facts of the Case, which went to the Court of Mr. Justice P. N. Prakash of Madras High Court in 2018;

The Accused preferred a Criminal Original Petition under Section 482 of Code of Criminal Procedure against the Criminal Miscellaneous Petition in CMP Nos. 6802 and 6803 of 2018 on the files of the XXIII Metropolitan Magistrate Court at Chennai. Wherein substance of the case was – the Accused averred that the Cheque issued by him comes under the cheque bounce case, but, not under IPC provisions like 406, 417 and 420 of IPC and the Complainant has wrongly instituted the case in the Magistrate Court under Section 200 of Cr.P.C. hence he prayed that the Crl MPs be dismissed. The Complainant version was that the Cheque was issued by the Accused to him only after closing of his Bank Account, hence instead Cheque Bounce, the suitable Forum could be a Private Complaint and he did so, he argued.

Mr. Justice P. N. Prakash had dismissed the Accused Petition and his Order read as follows;  

“In this case, as stated above, the accused had closed the bank account and thereafter, issued a cheque towards the discharge of his liability…”

Now understand what law say on this;

The important element which decides Section 420 is “deception.” Which means, cheating intention be at the time of commission of offence by the Accused. In the instant case, the Accused had issued a Cheque of his closed bank account and he therefore had mens rea to cheat the Complainant, hence such case of a Complainant was maintainable in a Private Complaint – this is what Mr. Justice P. N. Prakash in his Order dated 14-06-2018 in Crl. O. P. No. 12647/2018 had asserted.

Unfortunately, the 2018 Order now in social media and roaming without proper understanding of the same. It is an inappropriate text message which has no relevance to the Order hence those who receives please don’t pass further and find out the source and stop.

Otherwise, Section 138 of The Negotiable Instruments Act is still absolute and intact. No Police Complaint under Section 154 Cr.P.C. or Court’s intervention under Section 200 Cr.P.C. could be sought in a Cheque Bounce case.

Please remember no IPC provisions can be invoked as long as prima facie Cheque Bounce case is made out under Section 138 read with Section 142 of the NI Act.