Cheque dishonour complaint does not bar cheating and breach of trust prosecution where distinct criminal ingredients are alleged.

Proceedings for cheating and criminal breach of trust under Sections 406 and 420 IPC are not barred merely because a complaint under Section 138 of the Negotiable Instruments Act is already pending. Where the allegations disclose distinct criminal intent and separate ingredients, the existence of the cheque dishonour case does not prevent prosecution for the cognate offences. The inherent power under Section 482 CrPC must be used sparingly and cannot be invoked to stifle a legitimate prosecution. On the facts stated, the court found no abuse of process and declined to quash the FIR and consequential criminal proceedings.

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Issues: Whether proceedings under Sections 406 and 420 of the Indian Penal Code, 1860 could be quashed under Section 482 of the Code of Criminal Procedure, 1973 on the ground that a complaint under Section 138 of the Negotiable Instruments Act, 1881 was already pending.

Analysis: The existence of proceedings under Section 138 of the Negotiable Instruments Act, 1881 does not, by itself, bar prosecution for offences of cheating and criminal breach of trust when the allegations disclose a distinct criminal intent and separate ingredients. The inherent power under Section 482 of the Code of Criminal Procedure, 1973 is to be exercised sparingly and not to stifle a legitimate prosecution. On the facts placed before it, the Court found no basis to hold that the FIR and consequential proceedings were an abuse of process.

Conclusion: The request to quash the FIR and criminal proceedings was rejected.

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