Compromised cheque-bounce complaint can render proclamation and Section 174-A proceedings unsustainable after bona fide non-appearance.

Where a complaint under Section 138 of the Negotiable Instruments Act was compromised and withdrawn, continuation of proceedings under Section 174-A of the Indian Penal Code was treated as unsustainable, particularly when service of summons had not been effected at the accused's ordinary place of residence. The bona fide explanation for non-appearance supported quashing of the proclamation order and the consequential FIR, as further proceedings were viewed as an abuse of process after settlement of the main complaint.

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Issues: Whether the order declaring the petitioners as proclaimed persons and the consequential FIR under Section 174-A of the Indian Penal Code, 1860 were liable to be quashed after the complaint under Section 138 of the Negotiable Instruments Act, 1881 had been compromised and withdrawn, and where service of summons was not effected at the ordinary place of residence.

Analysis: The petitioners were declared proclaimed persons in proceedings arising from a complaint under Section 138 of the Negotiable Instruments Act, 1881. The record showed that service was not effected at their ordinary place of residence and the complaint was later compromised and withdrawn. The Court treated the non-appearance as supported by a bona fide explanation and relied on the principle that once the main complaint itself has been withdrawn after settlement, continuation of proceedings under Section 174-A of the Indian Penal Code, 1860 would amount to abuse of the process of law.

Conclusion: The challenge succeeded and the order declaring the petitioners as proclaimed persons, together with the FIR under Section 174-A of the Indian Penal Code, 1860 and all consequential proceedings, was quashed in favour of the petitioners.

Ratio Decidendi: Where a complaint under Section 138 of the Negotiable Instruments Act, 1881 is withdrawn after compromise and the accused shows a bona fide cause for non-appearance, continuation of proceedings under Section 174-A of the Indian Penal Code, 1860 is unsustainable.

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