Pre-cognizance investigation under Section 156(3) CrPC can proceed despite parallel cheque dishonour remedies when cheating is alleged.

A Magistrate may direct registration of a complaint as an FIR and investigation under Section 156(3) CrPC at the pre-cognizance stage if prima facie a cognizable offence is disclosed; Section 202 concerns postponement of process after cognizance and does not control that power. Where a commercial transaction also alleges cheating and dishonest inducement, the mere availability of a remedy under Section 138 of the Negotiable Instruments Act does not bar criminal proceedings for Penal Code offences. On those facts, the challenge to the investigation order and the request for quashing were rejected.

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Issues: Whether the Magistrate could direct registration of the complaint as an FIR and investigation under Section 156(3) of the Code of Criminal Procedure, 1973 without first holding an inquiry under Section 202 of the Code of Criminal Procedure, 1973; and whether the complaint and consequential criminal proceeding were liable to be quashed because the dispute also disclosed an offence under Section 138 of the Negotiable Instruments Act, 1881.

Analysis: The complaint disclosed allegations of cheating and dishonest inducement in the course of a commercial transaction, in addition to dishonour of cheque for insufficiency of funds. The power under Section 156(3) is available at the pre-cognizance stage when the Magistrate is prima facie satisfied that a cognizable offence is made out. Section 202 is concerned with postponement of process after cognizance and does not control the exercise of power under Section 156(3). The existence of a possible remedy or proceeding under the Negotiable Instruments Act does not bar criminal action where the ingredients of offences under the Penal Code are also alleged. On those facts, no illegality or irregularity was shown in directing investigation.

Conclusion: The challenge to the order directing registration and investigation failed, and the quashing request was rejected.

Ratio Decidendi: A Magistrate may order investigation under Section 156(3) of the Code of Criminal Procedure, 1973 on prima facie satisfaction of a cognizable offence, and the availability of proceedings under the Negotiable Instruments Act does not preclude prosecution for cheating where the necessary ingredients of the Penal Code offences are alleged.

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