Summoning in cheque dishonour complaint upheld despite SARFAESI proceedings and challenge to process issuance

Interference with an order issuing process in a cheque dishonour complaint was declined because the record disclosed a joint loan transaction, with both petitioners named in the loan documents, notices and account particulars, and the cheque was alleged to have been issued towards repayment of that liability. The Magistrate had proceeded after following the procedure under Sections 200, 202 and 204 of the Code of Criminal Procedure, and the Court said it was inappropriate at the summoning stage to appreciate evidence in writ or inherent jurisdiction. Pendency of SARFAESI measures was held not to create any legal bar to continuation of the criminal complaint.

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Issues: Whether the order issuing process in the cheque dishonour complaint warranted interference under Section 482 of the Code of Criminal Procedure, 1973, and whether pendency of proceedings under the SARFAESI Act barred continuation of the complaint.

Analysis: The documents on record showed a joint loan transaction, with both petitioners named in the loan documents, notices, and account particulars. The material also indicated that the cheque was issued towards repayment of the loan liability and that the Magistrate had proceeded after following the procedure under Sections 200, 202, and 204 of the Code of Criminal Procedure, 1973. The pendency of measures under the SARFAESI Act did not disclose any legal bar to the criminal complaint, and the Court held that it was not appropriate in writ or inherent jurisdiction to undertake appreciation of evidence at the stage of summoning.

Conclusion: No ground was made out to interfere with the order issuing process, and the challenge to the complaint failed.

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