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Issues: (i) Whether the complaint and process under section 138 of the Negotiable Instruments Act, 1881, complied with the statutory requirements of presentation, notice, and limitation. (ii) Whether, on the allegations made, process ought also to have been issued for the offence under section 420 of the Indian Penal Code, 1860.
Issue (i): Whether the complaint and process under section 138 of the Negotiable Instruments Act, 1881, complied with the statutory requirements of presentation, notice, and limitation.
Analysis: The complaint showed that the cheques were presented within the prescribed period, statutory notice was issued within time, and payment was not made within fifteen days of receipt of notice. The complaint was also lodged within one month from the accrual of the cause of action under section 142. A second presentation of the same cheque is not barred where the statute contains no prohibition against such re-presentation.
Conclusion: The requirements of sections 138 and 142 were complied with, and no ground existed to quash the process on that basis.
Issue (ii): Whether, on the allegations made, process ought also to have been issued for the offence under section 420 of the Indian Penal Code, 1860.
Analysis: The allegations were held to disclose, prima facie, not merely dishonour of cheque but also cheating. It was held that where the complaint discloses ingredients of cheating in addition to the cheque-dishonour offence, the Magistrate should not confine the process only to section 138 and should also issue process for section 420.
Conclusion: Process under section 420 of the Indian Penal Code, 1860, was required to be added along with the process under section 138.
Final Conclusion: The petition was rejected, the process under section 138 was sustained, and the trial was directed to proceed with the addition of the cheating charge.
Ratio Decidendi: Where the statutory requirements for prosecution under section 138 of the Negotiable Instruments Act, 1881, are satisfied, re-presentation of the cheque is not barred in the absence of an express prohibition, and if the complaint also prima facie discloses cheating, process may properly issue for both offences.
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