Mandatory Section 202 inquiry before process in cheque dishonour complaints against out-of-jurisdiction accused

In a complaint under Section 138 of the Negotiable Instruments Act, issuance of process against accused residing beyond the Magistrate's territorial jurisdiction is unsustainable unless the inquiry mandated by Section 202 of the Code of Criminal Procedure is first conducted. Where process was issued only on the complaint, verification statements and supporting documents, and no such inquiry took place, the order could not be sustained. The separate contention regarding the role attributed to the applicants was left open for consideration before the Magistrate.

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Issues: Whether issuance of process in a complaint under Section 138 of the Negotiable Instruments Act, 1881 was sustainable without the inquiry mandated by Section 202 of the Code of Criminal Procedure, 1973 when the accused reside beyond the territorial jurisdiction of the Magistrate.

Analysis: The complaint had resulted in process being issued only on the basis of the complaint, verification statements and accompanying documents. The accused were admittedly residing outside the territorial jurisdiction of the Magistrate. The governing legal position required an inquiry under Section 202 of the Code of Criminal Procedure, 1973 before proceeding against such accused in a complaint under Section 138 of the Negotiable Instruments Act, 1881. Since no such inquiry had been conducted, the order issuing process could not be sustained. The separate contention relating to the role attributed to the applicants was left open for appropriate consideration before the Magistrate.

Conclusion: The requirement of inquiry under Section 202 of the Code of Criminal Procedure, 1973 was mandatory on the facts, and the order issuing process was unsustainable.

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