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        2018 (12) TMI 1955 - HC - Indian Laws

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        Parallel prosecution based on the same cheque dispute may be quashed as an abuse of process. Parallel criminal prosecution based on the same transaction and grievance as a pending complaint under Section 138 of the Negotiable Instruments Act, 1881 ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                            Parallel prosecution based on the same cheque dispute may be quashed as an abuse of process.

                            Parallel criminal prosecution based on the same transaction and grievance as a pending complaint under Section 138 of the Negotiable Instruments Act, 1881 was treated as an abuse of process of court. The court noted that the materials disclosed, at best, a Section 138 dispute already pursued before the competent court, so continuing a second proceeding on the same cause of action was not warranted. The criminal proceedings were quashed, while the complainant's remedy under Section 138 was left to be decided independently on its own merits.




                            Issues: Whether the criminal proceedings could be quashed when the same cause of action was already being pursued in a pending complaint under Section 138 of the Negotiable Instruments Act, 1881.

                            Analysis: The allegations in the final report and the pending complaint arose from the same transaction and the same grievance. The materials disclosed, at best, a matter falling within Section 138 of the Negotiable Instruments Act, 1881, and the defacto-complainant had already invoked that remedy before the competent court. Permitting the parallel prosecution on the same cause of action would amount to abuse of process of court.

                            Conclusion: The proceedings were quashed in favour of the petitioners.

                            Final Conclusion: The criminal original petition succeeded, and the connected miscellaneous petitions were closed, while leaving the complainant's remedy under Section 138 of the Negotiable Instruments Act, 1881 to be decided independently on its own merits.

                            Ratio Decidendi: Where the same cause of action is already the subject matter of a pending complaint under Section 138 of the Negotiable Instruments Act, 1881, a parallel criminal prosecution on the same allegations is liable to be quashed as an abuse of process of court.


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                            ActsIncome Tax
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