When Can High Courts Interfere with Lower Courts’ Convictions under Section 138 NI Act? Clarifying the Limited Scope of Revisional Jurisdiction

The Uttarakhand High Court reaffirms that High Courts should not interfere with concurrent findings of fact by lower courts in Section 138 NI Act cases unless a manifest illegality, perversity, or irregularity is shown, thereby upholding existing precedent and providing binding guidance for future revisions under criminal law.

 

Summary

Category Data
Case Name CRLR/389/2022 of RAJINDRA SINGH NEGI Vs STATE OF UTTARAKHAND
CNR UKHC010102042022
Date of Registration 18-07-2022
Decision Date 30-10-2025
Disposal Nature DISMISSED
Judgment Author Hon’ble Mr. Justice Alok Mahra
Court High Court of Uttarakhand
Bench Single Judge
Precedent Value Binding on subordinate courts in Uttarakhand
Overrules / Affirms Affirms decisions of Trial Court and Appellate Court
Type of Law Criminal – Negotiable Instruments Act, 1881; Code of Criminal Procedure
Questions of Law Scope of High Court’s revisional jurisdiction under Sections 397/401 CrPC in convictions under Section 138 NI Act
Ratio Decidendi
  • The High Court will not interfere with concurrent findings of fact by the Trial Court and Appellate Court in the absence of manifest illegality, perversity, or irregularity.
  • Since the revisionist had already served out the sentence, and no such error was found in the lower courts’ judgments, the revision was dismissed.
  • The revisional jurisdiction is not for re-appreciation of facts unless miscarriage of justice is apparent.
Facts as Summarised by the Court

The revisionist, a property dealer, received Rs. 6,40,000/- from respondent no.2 as advance for a land sale. The transaction was not completed, and the revisionist issued a cheque dated 15.06.2017, which was dishonoured.

He was convicted under Section 138 NI Act, sentence affirmed by appellate court, and has already served his sentence.

Practical Impact

Category Impact
Binding On All subordinate courts in Uttarakhand
Persuasive For Other High Courts; may be referenced elsewhere for guidance on revisional scope in NI Act matters
Follows Order of Trial Court and Appellate Court in same subject matter

What’s New / What Lawyers Should Note

  • Reaffirms that the revisional jurisdiction of the High Court under Sections 397/401 CrPC is limited and cannot be used to re-appreciate facts absent a clear error of law, perversity, or irregularity.
  • Confirms that once sentence has been served and there is no illegality in convictions under Section 138 NI Act, nothing survives for further adjudication regarding sentence in revision.
  • Lawyers should prepare to demonstrate manifest illegality or irregularity if seeking High Court interference in revisional jurisdiction for NI Act convictions.

Summary of Legal Reasoning

  • The Court examined the concurrent factual findings and judgments of the Trial Court and the Appellate Court, both of which convicted the revisionist under Section 138 of the Negotiable Instruments Act.
  • The Court considered the scope of revisional jurisdiction under Sections 397 and 401 CrPC, emphasizing it is not meant for re-evaluating evidence or interfering in findings of fact unless gross irregularity, illegality, or perversity is shown.
  • The Court found no such errors or irregularity in the findings below.
  • Since the sentence awarded was already served and the lower courts’ findings were legally sound, the revision was dismissed.
  • The Court held that where no substantial question of law or manifest injustice remains, revisional powers should not be exercised.

Arguments by the Parties

Petitioner

Challenged concurrent conviction under Section 138 NI Act.

Respondent

Submitted that the revisionist had already undergone the sentence. Pointed out bail was granted subject to deposit of the amount as directed by the court. No argument for interference with the merits of the conviction.

Factual Background

The respondent paid Rs. 6,40,000/- as advance consideration to the revisionist, a property dealer, for purchase of a piece of land. With the transaction incomplete, the revisionist issued a cheque dated 15.06.2017 to the respondent, which was dishonoured on presentation. Proceedings under Section 138 of the Negotiable Instruments Act were initiated, resulting in the revisionist’s conviction by the Trial Court, affirmed by the Appellate Court. The revisionist subsequently served out the sentence awarded.

Statutory Analysis

The Court interpreted Section 138 of the Negotiable Instruments Act, 1881, affirming its application in cases where a cheque is dishonoured due to non-payment after the underlying transaction falls through. The judgment clarified the limited scope of High Court’s revisional jurisdiction under Sections 397 and 401 of the Code of Criminal Procedure, which does not allow for interference except in cases showing manifest illegality, perversity, or irregularity.

Alert Indicators

  • ✔ Precedent Followed – The judgment affirms the existing legal position regarding the scope of revisional jurisdiction under Sections 397/401 CrPC and application of Section 138 NI Act.

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