Quashing of Section 174-A IPC proceedings follows settlement of the cheque dispute and a bona fide non-appearance explanation.

Where a Section 138 NI Act complaint had been settled and withdrawn after the complainant received the cheque amount, and the accused offered a bona fide explanation for non-appearance when declared a proclaimed person, continuation of proceedings under Section 174-A IPC was held to serve no useful purpose. The High Court treated further prosecution as an abuse of process and quashed the impugned order, the FIR, and the connected proceedings.

---

---

Issues: Whether the FIR under Section 174-A of the Indian Penal Code and the order directing its registration were liable to be quashed after the complaint under Section 138 of the Negotiable Instruments Act, 1881 was compromised and withdrawn.

Analysis: The complaint under Section 138 of the Negotiable Instruments Act, 1881 had been settled between the parties and the complainant had received the cheque amount before withdrawing the complaint. The petitioner also showed a bona fide explanation for non-appearance when the order declaring him a proclaimed person was passed. In these circumstances, continuation of the proceedings under Section 174-A of the Indian Penal Code would serve no useful purpose and would amount to abuse of process.

Conclusion: The petition was rightly allowed and the impugned order and consequential FIR and proceedings were quashed.

---