S. Nagesh Vs Shobha S. Aradhya (Supreme Court of India)
Delay Must Be Condoned Before Cognizance: Taking Cognizance of a Time-Barred Section 138 Complaint Is Jurisdictionally Invalid
The Supreme Court held that a Magistrate cannot take cognizance of a complaint under Section 138 of the Negotiable Instruments Act, 1881 unless the delay in filing the complaint is first condoned in terms of the proviso to Section 142(1)(b). The Court clarified that condonation of delay is a condition precedent to taking cognizance, and any reversal of this statutory sequence is not a mere curable irregularity but a jurisdictional error.
In the present case, the complaint was filed with a delay of two days, but the Magistrate took cognizance on the very day of filing, without noticing or condoning the delay. The delay was condoned only much later, in 2018. The High Court upheld this course by treating the issue as an interchangeable procedural step. The Supreme Court disagreed, holding that the statutory mandate requires the Court to first record satisfaction regarding “sufficient cause” for delay, and only thereafter can cognizance be lawfully taken.
Relying on the clear language of the proviso to Section 142(1)(b) and drawing an analogy with limitation-based proceedings in civil law, the Court held that a belated complaint does not validly enter the Court’s docket unless the delay is condoned. The Court also noted that the complainant herself had incorrectly averred that the complaint was filed within limitation, which contributed to the procedural illegality.
Accordingly, the Supreme Court set aside the High Court’s order, held that the initial cognizance itself was invalid, and quashed the complaint in its entirety, reaffirming that statutory safeguards governing limitation under the NI Act must be strictly complied with
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
