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of <h1>Court quashes criminal proceedings due to cheques issued as security, not for debt discharge.</h1> <h3>R. Sreenivasan Versus State of Kerala and Ors.</h3> The court quashed the criminal proceedings in the case pending before the Judicial First Class Magistrate Court No. 1 in Fort Cochin. The petitioner's ... - Issues:Challenge to quash proceedings in criminal case under Section 482 of CrPC based on issues related to the complaint under Section 138 of the Negotiable Instruments Act.Analysis:The case involved a petition under Section 482 of the Criminal Procedure Code seeking to quash proceedings in a criminal case. The complainant alleged that the accused borrowed sums of money and issued cheques and a promissory note as security. The complaint was filed under Section 138 of the Negotiable Instruments Act when the accused failed to repay as promised. The petitioner's counsel argued that the complaint did not meet the requirements of Section 138 since the cheques were issued as security and not for the discharge of a debt. Citing a decision of the Andhra Pradesh High Court, the counsel contended that issuing a cheque as security does not constitute issuance for the discharge of a debt as required by law.The court analyzed the provisions of Section 138 of the Negotiable Instruments Act and the legal principle established by the Andhra Pradesh High Court. It concluded that when a cheque is issued as security, a complaint under Section 138 would not be maintainable. Additionally, an inconsistency was noted in the complaint where it stated that the cheque was issued solely by the petitioner, while the notice revealed it was issued along with two other individuals. This inconsistency further weakened the complainant's case, as pointed out by the petitioner's counsel. Consequently, the court found no merit in allowing the criminal prosecution to proceed and decided to quash the proceedings under Section 482 of the CrPC.In the final judgment, the court quashed the proceedings in the criminal case, C. C. No. 387 of 1998, pending before the Judicial First Class Magistrate Court No. 1 in Fort Cochin. The court allowed the criminal miscellaneous case filed by the petitioner, thereby putting an end to the prosecution initiated by the complainant based on the alleged dishonoring of cheques issued as security.
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