Quashing of cheque dishonour complaint refused where admitted signature triggered the presumption and disputed misuse claims needed trial.

A complaint under Section 138 of the Negotiable Instruments Act was not liable to be quashed under Section 482 CrPC or Article 226 where the cheque and signature were admitted and the complaint disclosed the foundational ingredients of the offence. The statutory presumption under Section 139 operated in favour of the cheque holder, and the defence that the signed cheque had been misused in a family and business dispute raised disputed factual questions that could not be conclusively resolved in quashing proceedings. Material supporting that defence required trial testing, and no exceptional abuse of process was shown. The complaint was therefore allowed to proceed to trial.

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Issues: Whether the criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 could be quashed in exercise of inherent jurisdiction under Section 482 of the Code of Criminal Procedure and Article 226 of the Constitution of India when the defence rested on disputed facts and alleged misuse of signed cheques.

Analysis: The complaint disclosed the foundational ingredients of an offence under Section 138 of the Negotiable Instruments Act, 1881. The cheque and signature were not disputed, and once issuance and signature are admitted, the statutory presumption under Section 139 operates in favour of the holder of the cheque. The defence that the cheque was obtained and misused under a family and business dispute raised contested factual questions that required evidence and could not be conclusively examined in quashing proceedings. Material relied upon by the petitioners was of a nature that could only be tested at trial, and the record did not show a case of such exceptional abuse of process as would justify interference at the threshold.

Conclusion: The petition for quashing was not maintainable on the facts presented, and the complaint under Section 138 was permitted to proceed to trial.

Ratio Decidendi: In proceedings for quashing, the Court will not ordinarily determine disputed factual defences where the complaint discloses the offence and the cheque and signature are admitted, because the presumption under Section 139 of the Negotiable Instruments Act, 1881 must be tested at trial.

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