Section 138 complaint process can issue on documents alone; security-cheque defence and clubbed cheques do not defeat summoning.
In a Section 138 NI Act complaint supported by affidavit and documents, the Magistrate may issue process on a prima facie assessment without a separate Section 202 CrPC inquiry merely because the accused resides outside jurisdiction. A plea that the cheques were issued only as security cannot defeat summoning at the threshold, as it raises a rebuttal to the statutory presumption that must be tested at trial. Where one statutory notice covers multiple dishonoured cheques arising from the same transaction, they may be joined in a single complaint and Section 219 CrPC is not attracted. The summoning order was therefore sustained and the proceedings were allowed to continue.
Issues: (i) Whether, in a complaint under Section 138 of the Negotiable Instruments Act based on documentary material, the Magistrate was required to conduct a further inquiry under Section 202 of the Code of Criminal Procedure before issuing process; (ii) whether the plea that the cheques were issued only as security could defeat the summoning order at the threshold; (iii) whether four cheques covered by one statutory notice could be clubbed in a single complaint without attracting Section 219 of the Code of Criminal Procedure.
Issue (i): Whether, in a complaint under Section 138 of the Negotiable Instruments Act based on documentary material, the Magistrate was required to conduct a further inquiry under Section 202 of the Code of Criminal Procedure before issuing process?
Analysis: Where the alleged offence is disclosed from the complaint, affidavit evidence and supporting documents, the Magistrate is to scrutinize whether a prima facie case is made out. In such document-based prosecutions, a further inquiry is not required merely because the accused resides outside the territorial jurisdiction of the court. The purpose of Section 202 is limited to ascertaining whether there is sufficient ground for proceeding and preventing mechanical issuance of process in complaints founded only on oral allegations.
Conclusion: No further inquiry under Section 202 was required and the summoning order was not vitiated on that ground.
Issue (ii): Whether the plea that the cheques were issued only as security could defeat the summoning order at the threshold?
Analysis: The defence that the cheques were security cheques goes to rebuttal of the statutory presumption and cannot be adjudicated at the stage of issuing summons when it was not before the Magistrate. Under the statutory scheme, the cheque carries a presumption of being issued towards a debt or liability, and the accused must rebut that presumption before the trial court at the appropriate stage.
Conclusion: The security-cheque defence did not warrant interference with the summoning order.
Issue (iii): Whether four cheques covered by one statutory notice could be clubbed in a single complaint without attracting Section 219 of the Code of Criminal Procedure?
Analysis: The cause of action in a prosecution under Section 138 of the Negotiable Instruments Act arises from the statutory notice and non-payment thereafter, not from the dishonour entries in isolation. Where one notice covers multiple dishonoured cheques arising out of the same transaction, the complaints are maintainable together and the mischief of Section 219 is not attracted. The joinder does not prejudice the accused when the transactions are covered by a common demand notice.
Conclusion: The complaint was not bad for clubbing four cheques in one proceeding.
Final Conclusion: The petition under Section 482 of the Code of Criminal Procedure failed on all substantive grounds, the summoning order was sustained, and the proceedings before the Magistrate were directed to continue.
Ratio Decidendi: In a document-based prosecution under Section 138 of the Negotiable Instruments Act, the Magistrate may issue process on affidavit and documents without a separate Section 202 inquiry, presumptive liability on the cheque cannot be displaced at the summoning stage, and multiple dishonoured cheques covered by one statutory notice may be joined in one complaint.