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Cheque bounce: Magistrate's order quashed

The Calcutta High Court last week dismissed the appeal of a company and some of its directors facing the charge of issuing cheques that were dishonoured, observing that the magistrate need not give elaborate reasons for issuing process. In this case, Fairdeal Suppliers Ltd vs Piyarelal Iron & Steel Ltd, the latter complained that the cheques bounced. The magistrate at first issued process to all the accused persons and they appeared before him. However, later the order was recalled and a fresh police report was demanded. After the report, the magistrate discharged them. The payee appealed to the session court, which ruled that the discharge was wrong. The appeal came to Supreme Court. The accused persons argued that the complaint did not explain the specific role of the directors and the magistrate's order was cryptic. The high court rejected these contentions and allowed the trial to proceed.

Article referred: http://www.business-standard.com/article/opinion/0fficial-discretion-must-be-used-fairly-115061400727_1.html

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