Section 202 inquiry is not mandatory in cheque dishonour complaints before issuing process under the Negotiable Instruments Act.

An inquiry under Section 202 of the Code of Criminal Procedure, 1973 is not mandatory before issuance of process in every complaint under Section 138 of the Negotiable Instruments Act, even where the accused resides beyond the trial court's territorial jurisdiction. The court distinguished authorities arising under the Indian Penal Code and held that the object and scheme of the Negotiable Instruments Act would be undermined if such inquiry were treated as compulsory in cheque dishonour cases. Process may therefore be issued on a prima facie assessment of the complaint, verification statement and accompanying documents.

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Issues: Whether an inquiry under Section 202 of the Code of Criminal Procedure, 1973 is mandatory before issuing process in a complaint under Section 138 of the Negotiable Instruments Act when the accused resides beyond the territorial jurisdiction of the trial court.

Analysis: The complaint arose from dishonour of cheques and process had been issued on a prima facie assessment of the complaint, verification statement and documents. The challenge was confined to the alleged failure to conduct an inquiry under Section 202 of the Code of Criminal Procedure, 1973. The Court noted that decisions dealing with prosecutions under the Indian Penal Code had recognised the amended requirement of inquiry in appropriate cases, but those authorities were distinguished in the context of complaints under Section 138 of the Negotiable Instruments Act. Relying on earlier decisions of this Court, the Court accepted that the object and scheme of the Negotiable Instruments Act would be defeated if such inquiry were treated as compulsory in every cheque dishonour complaint.

Conclusion: Inquiry under Section 202 of the Code of Criminal Procedure, 1973 is not mandatory in proceedings under Section 138 of the Negotiable Instruments Act.

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