Early payment in cheque dishonour cases can justify quashing where prosecution becomes an abuse of process.

A cheque dishonour complaint under Section 138 of the Negotiable Instruments Act may be quashed in exercise of inherent powers where the accused has fully paid the cheque amount at an early stage and continuation of the prosecution would amount to abuse of process. The Court treated the payment made before the first date of hearing as significant, and held that the complainant's refusal to withdraw or compound the matter did not prevent quashing on the facts. The reasoning was fact-specific, including the early payment and the unfairness of insisting on prosecution despite satisfaction of the dues.

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Issues: Whether the criminal complaint under Section 138 of the Negotiable Instruments Act was liable to be quashed under the inherent powers of the Court despite payment of the cheque amount before the first date of hearing and the complainant's refusal to withdraw the proceedings or compound the offence.

Analysis: The complaint arose from dishonour of a cheque issued towards settlement of dues. The accused paid the amount before the matter progressed in the trial court and produced supporting material showing that payment had been made at the first date of hearing. The Court held that the principles in the authorities cited against the petitioner could not be applied mechanically to the facts here, because the payment was made at an early stage during extraordinary financial conditions and the complainant's insistence on continuation of the prosecution was found to be unfair. On those facts, the proceedings were treated as an abuse of process.

Conclusion: The complaint was held liable to be quashed in favour of the petitioner.

Final Conclusion: The prosecution arising from the cheque dishonour dispute was terminated, and the criminal original petition succeeded.

Ratio Decidendi: Where the cheque amount is fully paid at an early stage and continuation of the prosecution would amount to abuse of process, the Court may exercise inherent power to quash the complaint notwithstanding the complainant's refusal to compound.

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