(1) No court shall take cognizance of an offence punishable under this Act except upon a complaint in writing made by an officer of the Reserve Bank generally or specially authorised by it in writing in this behalf, and no court, lower than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any such offence:
Provided that the Court may take cognizance of an offence punishable under section 25 upon a complaint in writing made by the person aggrieved by the dishonour of the electronic funds transfer.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2 of 1974), a Magistrate may dispense with the personal attendance of the officer of the Reserve Bank filing the complaint, but the Magistrate may, in his discretion, at any stage of the proceedings, direct the personal attendance of the complainant.
Simplified Explanation
Section 28 of the Payment and Settlement Systems Act, 2007 outlines the process and conditions for taking cognizance of offences under the Act. This section ensures that the prosecution of offences related to payment systems is handled in a structured and controlled manner.
Key Provisions of Section 28:
- Cognizance of Offences by Courts (Subsection 1):
- Complaint Requirement: No court shall take cognizance of an offence punishable under the Act except upon a complaint in writing made by an officer of the Reserve Bank of India (RBI) who has been generally or specially authorised to do so by the RBI.
- Jurisdiction of Court: The offence can only be tried in a court not lower than a Metropolitan Magistrate or a Judicial Magistrate of the First Class.
- Exception for Section 25: In cases of dishonour of electronic funds transfer (under Section 25), the person aggrieved by the dishonour can file the complaint in writing. This is an exception to the general rule requiring an RBI officer to file the complaint.
- Dispensing with Personal Attendance of RBI Officer (Subsection 2):
- Personal Attendance: Although the complaint must be filed by an officer of the RBI, the Magistrate hearing the case may dispense with the personal attendance of the RBI officer who filed the complaint.
- Discretion of Magistrate: However, the Magistrate retains the discretion to direct the personal attendance of the complainant (RBI officer) at any stage of the proceedings.
Summary of Section 28:
- Filing of Complaints:
- Complaints related to offences under the Act must be filed by an authorised officer of the RBI (unless the offence falls under Section 25, in which case the aggrieved person can file the complaint).
- Court Jurisdiction:
- The offence must be tried in a court of Metropolitan Magistrate or a Judicial Magistrate of the First Class, ensuring that serious offences under the Act are dealt with by courts with appropriate jurisdiction and authority.
- Personal Attendance of Complainant:
- The officer filing the complaint can generally be excused from attending court in person, although the Magistrate can direct their attendance if deemed necessary for the proceedings.
Practical Implications:
- Centralized Enforcement:
- The requirement that complaints can only be filed by RBI officers ensures centralized control over the enforcement of the Act. This also streamlines the process and maintains consistency in how offences are prosecuted.
- Specialized Courts:
- By limiting the jurisdiction to higher courts (Metropolitan Magistrate or Judicial Magistrate of the First Class), the law ensures that cases under the Act are handled by judicial officers with the necessary expertise and authority to deal with financial and regulatory matters.
- Flexibility in Procedure:
- The provision allowing for the dispensation of personal attendance of the RBI officer filing the complaint reflects an effort to make the legal process more efficient, particularly when the officer’s physical presence is not essential for the case. However, the discretion for the Magistrate to request personal attendance ensures that the court can call for additional clarification if needed.
In conclusion, Section 28 provides clear guidelines for the prosecution of offences under the Payment and Settlement Systems Act. It ensures that only authorized RBI officers can file complaints and establishes a streamlined judicial process, while allowing some flexibility in the procedural aspects of handling cases.
