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Issues: Whether a second complaint under Section 138 of the Negotiable Instruments Act, 1881 was maintainable where the cheque was issued pursuant to a compromise and not in discharge of an independent legally enforceable debt, and the earlier proceedings concerning the transaction had already resulted in conviction.
Analysis: The cheque in question was issued only as part of a settlement reached between the parties in Lok Adalat. It did not create a fresh liability or constitute payment in discharge of a subsisting debt distinct from the earlier transaction. For an offence under Section 138, the cheque must be drawn towards discharge, in whole or in part, of a legally enforceable debt or other liability. Where the cheque is merely a settlement instrument and the compromise does not fructify, the foundational requirement of Section 138 is not satisfied. In such circumstances, entertaining a second complaint on the same underlying transaction is misconceived.
Conclusion: The second complaint was not maintainable and the orders taking cognizance and affirming that order were set aside; the complaint was quashed in favour of the petitioner.
Ratio Decidendi: A cheque issued solely in pursuance of a compromise, without creating a fresh legally enforceable debt or liability, does not attract Section 138 of the Negotiable Instruments Act, 1881 for a second complaint on the same transaction.
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