Prima facie cheating and breach of trust allegations survive quashing, while defective pre-summoning inquiry warrants remand, not termination.

A complaint alleging dishonest invocation of pledged shares, realisation of proceeds beyond the outstanding liability, and retention of the excess was treated as disclosing prima facie ingredients of cheating and criminal breach of trust; at the Section 482 stage, disputed civil-defence claims were not ative, so quashing was refused on that ground. The absence of the mandatory inquiry under Section 202(1) before issuing process against accused persons residing outside the Magistrate's jurisdiction was treated as a procedural defect affecting the process order, but not as a basis to terminate the prosecution; the proper course was remand for fresh consideration after compliance with the pre-summoning requirement.

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Issues: (i) Whether the complaint, read as a whole, disclosed prima facie offences of cheating and criminal breach of trust so as to justify quashing of the criminal proceedings against the company and its directors. (ii) Whether non-compliance with the mandatory inquiry under Section 202(1) of the Code of Criminal Procedure before issuance of process, in respect of accused persons residing outside the Magistrate's jurisdiction, warranted quashing or remand.

Issue (i): Whether the complaint, read as a whole, disclosed prima facie offences of cheating and criminal breach of trust so as to justify quashing of the criminal proceedings against the company and its directors.

Analysis: The complaint contained detailed assertions that the accused allegedly invoked pledged shares before the due date, realised amounts exceeding the outstanding liability, and retained the excess proceeds. It also contained specific averments linking the directors to the alleged conspiracy and wrongful inducement. At the stage of Section 482 scrutiny, the Court was not required to determine disputed facts or test the defence version that the acts were only contractual or civil in nature. On the face of the complaint, the ingredients of the alleged offences were held to be prima facie present, and the absence of a basis for treating the dispute as purely civil was not established.

Conclusion: Quashing on the ground that the complaint disclosed only a civil dispute was refused, and the allegations against the company and its directors were held sufficient to continue the prosecution.

Issue (ii): Whether non-compliance with the mandatory inquiry under Section 202(1) of the Code of Criminal Procedure before issuance of process, in respect of accused persons residing outside the Magistrate's jurisdiction, warranted quashing or remand.

Analysis: The accused were stated to be residing beyond the territorial jurisdiction of the Magistrate, and the process had been issued without the inquiry contemplated by Section 202(1). The omission was treated as a procedural irregularity affecting the validity of the order issuing process, but not as a ground for quashing the entire criminal proceeding. The appropriate course, in the circumstances, was to preserve the proceeding while directing the Magistrate to reconsider the matter after complying with the mandatory pre-summoning requirement.

Conclusion: The proceedings were not quashed on this ground, but the matter was remitted to the Magistrate for passing a fresh order after compliance with Section 202(1).

Final Conclusion: The revisional challenge to the continuation of the criminal case failed on merits, but the process order was set aside for procedural reconsideration and the matter was sent back to the Magistrate for fresh decision in accordance with law.

Ratio Decidendi: A complaint alleging dishonest invocation of pledged assets and wrongful retention of proceeds may survive Section 482 scrutiny if it discloses prima facie criminal ingredients, and where process is issued against persons residing outside jurisdiction without the inquiry mandated by Section 202(1), the proceeding need not be quashed but may be remitted for fresh consideration.

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