Stop-payment dishonour complaints can be quashed when essential facts showing liability are not properly disclosed.

A complaint under Section 138 of the Negotiable Instruments Act may fail where the cheque is dishonoured on stop-payment instructions but the complaint does not disclose the full material facts needed to establish liability. The Court noted that the statutory notice process, the presumption under Section 139, and the surrounding dispute over the underlying debt must be properly pleaded. Because the complaint omitted the drawer's reply and other essential facts, the basic ingredients of the offence were not made out on the face of the record. In such circumstances, inherent jurisdiction may be used to prevent abuse of process and secure the ends of justice, and the proceedings may be quashed.

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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 was liable to be quashed when the cheque was dishonoured on stop payment instructions and the complaint did not disclose the drawer's reply and the surrounding dispute relating to liability.

Analysis: The cheque was returned because of stop payment instructions and not for insufficiency of funds or because the amount exceeded the arrangement with the bank. The complaint was examined against the requirements of Section 138, including the statutory notice mechanism and the burden arising from the presumption under Section 139. On the facts pleaded, the complaint did not disclose the complete and correct material facts, particularly the reply to the notice and the dispute as to the underlying liability. Applying the principles governing exercise of inherent powers to prevent abuse of process and to secure the ends of justice, the Court found that the essential ingredients of the offence were not made out on the complaint as filed.

Conclusion: The complaint under Section 138 was not sustainable and was liable to be quashed in exercise of inherent jurisdiction.

Final Conclusion: The proceedings were held to be an abuse of process and were set aside.

Ratio Decidendi: A complaint under Section 138 of the Negotiable Instruments Act, 1881 may be quashed where, on the face of the complaint, the essential ingredients of the offence are not disclosed and the material facts necessary to establish the alleged liability are suppressed, even if the dishonour is by stop payment instructions.

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