Authority: High Court of Judicature at Bombay, Aurangabad Bench

Order Date: 09 October 2026

Case Overview

  • Applicant: True Value Trade, partnership (partner Chandrkumar Bansilal Malani, 59, business) filed a leave application after its criminal complaint under Section 138 of the Negotiable Instruments Act (S.C.C. No. 2604 of 2020) was dismissed by invoking Section 256 of the Code of Criminal Procedure.
  • Respondents: Eshwar Services (registered firm) and individuals Jyoti Raut and Ishwar S. Raut.
  • The original complaint had been instituted in the Judicial Magistrate First Class, Court No. 11, Aurangabad, with process issued on 07 November 2023, but was later dismissed for absence of the complainant and failure to take necessary steps.
  • Counsel for the applicant, Mr. Chaitanya C. Deshpande, asserted readiness to prosecute the matter on its merits; counsel for respondents, Mr. Ashok D. Raut, opposed.

Order

1. Application for leave to appeal is allowed.

2. Leave is granted to file the appeal; the Registry is directed to register it.

3. Applicant ordered to pay costs of Rs 3,000 to the respondents.

4. The impugned order dated 27 March 2025 passed by the Judicial Magistrate First Class, Aurangabad, is set aside.

5. The matter is remanded to the same Judicial Magistrate for a fresh hearing, with both sides to be given an opportunity to adduce evidence.

6. Parties are directed to appear before the trial court on 30 October 2026; further dates to be fixed by the trial judge.

7. The appeal is disposed of accordingly.

Final Outcome

The High Court restored the applicant’s right to pursue the Section 138 NI Act complaint, overturned the magistrate’s dismissal, imposed a modest cost on the applicant, and ordered a fresh trial hearing on 30 October 2026.

Topics: Legal Proceedings, Negotiable Instruments Act