Quashing of cheque dishonour prosecution where uncontroverted resignation documents showed no role in the company after departure.

Criminal proceedings under the Negotiable Instruments Act may be quashed under Section 482 CrPC where unimpeachable, uncontroverted documentary material shows that a director had resigned before the cheque was issued and no continuing role in the company is disclosed. Form 32 confirmed the resignation, the cheque was issued after that date, and nothing showed the former director's involvement in the company's affairs thereafter. On those facts, continuation of the complaint would amount to abuse of process, and the proceedings were quashed.

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Issues: Whether criminal proceedings under the Negotiable Instruments Act could be quashed against a former director who had resigned before the cheque was issued, on the basis of uncontroverted documentary material showing resignation.

Analysis: The resignation of the petitioner from the company was supported by Form 32 and the document remained uncontroverted. The cheque in question was issued after the resignation date, and no material was produced to show continued involvement of the petitioner in the affairs of the company after resignation. In such circumstances, where unimpeachable and uncontroverted material shows that the director could not have been concerned with the issuance of the cheque, continuation of prosecution would amount to abuse of the process of court. The power under Section 482 of the Code of Criminal Procedure can be exercised sparingly to prevent such abuse.

Conclusion: The proceedings against the petitioner were quashed.

Ratio Decidendi: A criminal complaint under Sections 138, 141 and 142 of the Negotiable Instruments Act may be quashed under Section 482 of the Code of Criminal Procedure where unimpeachable, uncontroverted material shows that the director had resigned before the cheque was issued and no continuing role in the company is disclosed.

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