SC restores complaint over cheque dishonour, says Patna HC conducted 'roving enquiry'

New Delhi, Dec 19 (PTI) The Supreme Court on Friday set aside the Patna High Court order which quashed criminal proceedings arising out of a cheque dishonour complaint, saying the high court committed an error by conducting a "roving enquiry" at the pre-trial stage.

A bench of Justices Manoj Misra and Ujjal Bhuyan said the high court, in its jurisdiction under section 482 of the Code of Criminal Procedure (CrPC), had proceeded to test whether the cheque was issued for the discharge, in whole or in part, of any debt or other liability.

Referring to some earlier verdicts of the apex court and the provision of the Negotiable Instruments Act, the bench said, "We are of the considered view that the high court committed an error by conducting a roving enquiry, at the pre-trial stage, as regards the cheque being issued for the discharge of debt or liability".

The bench said that as fulfilment of the necessary ingredients of section 138 of the Act is prima facie made out from the allegations, neither the summoning order nor the complaint could have been quashed at the pre-trial stage.

Section 138 of the Act deals with dishonour of a cheque for insufficiency, etc, of funds in the account.

The top court delivered its verdict on an appeal challenging a June 2019 order of the high court which quashed criminal proceedings arising out of the complaint case.

The appellant had lodged a complaint under section 138 of the Act against a person claiming that a Rs 20 lakh cheque issued to him in lieu of delivery of goods was dishonoured.

The magistrate took cognisance of the complaint and summoned the respondent under section 138 of the Act.

The respondent moved the high court challenging the summoning order.

The high court quashed the complaint proceedings on the ground that the cheque was not issued for the discharge, in whole or in part, of any debt or other liability.

Dealing with the appeal, the apex court said, "The law is well settled that while considering a prayer to quash the criminal complaint and the consequential proceedings at the threshold, the court is required to examine whether the allegations made in the complaint along with materials in support thereof make out a prima facie case to proceed against the accused or not." It said no doubt, in exceptional circumstances, the court may take notice of attending circumstances to conclude that continuance of proceedings would amount to an abuse of the process, or where quashing is necessary to secure the ends of justice.

The bench said in this case, the complaint clearly spelt out the necessary ingredients for the commission of an offence punishable under section 138 of the Act.

While allowing the appeal, the bench set aside the high court's order and restored the criminal complaint on the file of the concerned magistrate.

The top court made it clear that it has not expressed any opinion as to whether the cheque in question was issued for the discharge, in whole or in part, of any debt or liability. PTI ABA ABA KSS KSS