Restoration of complaint under cheque dishonour law allowed to ensure adjudication on merits after cognizance had been taken.

A complaint under Section 138 of the Negotiable Instruments Act should not be finally terminated for non-prosecution after cognizance has been taken on sworn statement and supporting material. Where the complainant seeks restoration, the proceeding should ordinarily be allowed to continue so the case can be decided on merits, subject to the statutory presumptions and evidentiary standard applicable to such prosecutions. On the facts stated, the dismissal for non-prosecution and the refusal to restore were unsustainable, and the complaint was restored to the trial court for adjudication in accordance with law.

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Issues: Whether the order dismissing the complaint for non-prosecution and the subsequent order refusing restoration were liable to be set aside and the complaint restored.

Analysis: The complaint had been instituted for an offence under Section 138 of the Negotiable Instruments Act, 1881, and cognizance had already been taken on the basis of the sworn statement and supporting material. The dismissal for non-prosecution occurred on a date when both sides were absent, and the restoration request was rejected despite the fact that the case arose from a special enactment intended to advance both social and criminal justice. The proceeding under Section 138 of the Negotiable Instruments Act, 1881 requires adjudication on merits after the complainant is afforded an opportunity to establish the case, subject to the statutory presumptions and the evidentiary standard applicable to such prosecutions.

Conclusion: The dismissal order and the order refusing restoration were unsustainable and were set aside, and the complaint was restored to the file.

Final Conclusion: The complainant was entitled to have the prosecution proceed on merits, and the trial court was directed to decide the matter in accordance with law after restoration.

Ratio Decidendi: A complaint under Section 138 of the Negotiable Instruments Act, 1881 should not be finally terminated for non-prosecution where cognizance has already been taken and the complainant seeks restoration, if restoration is necessary to secure adjudication on merits.

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