Rebuttable statutory presumption in cheque cases can justify quashing when materials show abuse of process on probabilities.

In a petition under Section 482 CrPC, criminal proceedings under Section 138 of the Negotiable Instruments Act may be quashed if the accused produces materials showing that continuation of the prosecution would amount to abuse of process. The Court held that, for this limited purpose, it may examine the complaint, reply notice and other relied-upon materials to test whether the statutory presumption under Section 139 has been rebutted. It further reiterated that the presumption is rebuttable on a preponderance of probabilities, not by proof beyond reasonable doubt. Applying that standard, the materials produced by the accused were sufficient to displace the presumption and justify quashing.

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Issues: Whether the criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881 were liable to be quashed under Section 482 of the Code of Criminal Procedure, 1973 on the ground that the complaint and the materials produced by the accused disclosed abuse of process of court and rebutted the statutory presumption.

Analysis: The complaint alleged issuance of a cheque towards a loan, but the surrounding circumstances, the reply notice, and the registered agreement produced by the accused created serious doubt about the complainant's version. The Court held that, in a petition under Section 482 of the Code of Criminal Procedure, 1973, it could examine whether the initiation of proceedings itself amounted to abuse of process of court and could look at materials relied on by the accused for that limited purpose. The Court further held that the presumption under Section 139 of the Negotiable Instruments Act, 1881 is rebuttable and can be displaced on a preponderance of probabilities, without requiring proof beyond reasonable doubt.

Conclusion: The materials produced by the accused were sufficient to rebut the presumption and show that continuation of the prosecution would amount to abuse of process of court. The criminal proceedings were therefore liable to be quashed.

Ratio Decidendi: In proceedings under Section 482 of the Code of Criminal Procedure, 1973, a prosecution under Section 138 of the Negotiable Instruments Act, 1881 may be quashed where the accused, on a preponderance of probabilities, produces materials sufficient to rebut the presumption under Section 139 and show that the complaint is an abuse of process of court.

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