Cheques under Section 138 require the accused to be the drawer and liable on a legally enforceable debt before prosecution can continue.

Section 138 of the Negotiable Instruments Act applies only when the accused is shown to be the drawer of the cheque and the cheque was issued in discharge of a legally enforceable debt or liability. The complaint against the petitioner company did not allege that it issued the cheques, stood as drawer, or owed any debt to the complainant. On those foundational omissions, continuation of the prosecution would amount to abuse of process, and the complaint and summoning order were liable to be quashed. Prior withdrawal of a revision did not bar exercise of inherent jurisdiction under Section 482 of the Code of Criminal Procedure where no offence against the petitioner was disclosed.

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Issues: Whether the complaint and summoning order under Section 138 of the Negotiable Instruments Act, 1881 deserved to be quashed against the petitioner company for want of the essential ingredients of the offence and for abuse of the process of law.

Analysis: Section 138 is attracted only where a cheque is drawn by a person in discharge of a legally enforceable debt or liability and is dishonoured on presentation. The allegations did not show that the petitioner company had issued the cheques, was the drawer, or owed any debt or liability to the complainant. Since the foundational ingredients of the offence were absent, continuation of the proceedings against the petitioner would serve no legitimate purpose and would amount to abuse of process. The prior withdrawal of a revision did not bar exercise of inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973 where the complaint itself failed to disclose an offence against the petitioner.

Conclusion: The complaint and the impugned summoning order were liable to be quashed against the petitioner.

Final Conclusion: The proceedings under Section 138 could not be sustained against the petitioner company, and the Court granted quashing relief in its favour.

Ratio Decidendi: Where the complaint does not disclose that the accused was the drawer of the cheque or that any legally enforceable debt or liability existed against it, proceedings under Section 138 of the Negotiable Instruments Act, 1881 can be quashed in exercise of inherent jurisdiction to prevent abuse of process.

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