SUPREME COURT OF INDIA

Before:- Thomas and Shah, JJ.

Special Leave Petitions (Criminal) Nos. 1605-1607 of 1999. D/d. 12.5.1999.

Mevul Mani Lal Nagada - Petitioner

Versus

Rudrappa Kaibasappa Yaradoni - Respondent

Negotiable Instruments Act, 1881, Section 138 - Karnataka Agriculture Produce Marketing Regulation Act, 1966, Section 84(4) - Requirement of previous sanction before entertaining other Legal Proceedings - Provision not applicable to the prosecution proceedings for an offence under Section 138.

[Para 2]

ORDER

The petitioner contends that prosecution launched against him for the offence under Section 138 of the Negotiable Instruments Act is not maintainable as the complainant has not obtaineld previous sanction contemplated in Section 84(4) of the Karnataka Agricultural Produce Marketing (Regulation) Act, 1966. Section 84 is extracted below :

"84. Provision for settlement of disputes - (1) For the purpose of settling disputes between producers, buyers and sellers, or their agents, including any disputes regarding the quality or weight of, or payment for, any agricultural produce, or any matter in relation to the regulation of marketing of agricultural produce in the market area, the market committee of that area shall appoint a panel of arbitrators periodically consisting of agriclturists, traders and commission agents, and constitute a Disputes Committee from among its members in such manner as may be prescribed.

(2) Rules shall be made regulating the procedure for settlement of disputes, the authority or authorities for settling the disputes and appeals from the decisions of such authorities, payment of fees by parties for settlement of disputes, by an arbitrator or arbitrators and all other matters connected with such settlement including the extent to which the provisions of the Abitration Act, 1940 shall be applicable to arbitrations under this Section.

(3) Subject to the rules made under Sub-section (2), a market committee may make bye-laws regulating the details in respect of settlement of disputes relating to transactions in notified agricultural procedure in the market area.

(4) Nothwithstanding anything contained in any law, no suit or other legal proceeding shall be entertained by any Court in respect of disputes referred to in Sub-section (1), without the previous sanction of the market committee.

2. We have absolutely no doubt that the prosecution under Section 138 of the Negotiable Instruments Act is not a kind of dispute referred to in Sub-section (1) of the Section 84 of the Karnataka Act. Therefore, the previous sanction contemplated in Sub-section (4) is not applicable to the prosecution proceedings for an offence under Section 138 of the Negotiable Instruments Act. We, therefore, repel the contention of the petitioner and dismiss this special leave petition.

Dismissed.