Cheque dishonour quashing denied where liability and security cheque issues raised disputed facts requiring trial.

Disputed questions about whether a cheque was issued towards a legally enforceable debt or only as a post-dated security cheque cannot be resolved in a petition under Section 482 of the Code of Criminal Procedure, 1973. The HC held that inherent jurisdiction is to be exercised sparingly and not used to appreciate evidence or decide contested facts at the quash stage. As the complaint and materials disclosed a prima facie case under the Negotiable Instruments Act, 1881, the criminal proceedings were allowed to continue and the complaint was directed to proceed to trial.

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Issues: Whether the criminal proceedings based on the cheque dishonour complaint could be quashed in exercise of inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973, when the dispute centred on whether the cheque was issued towards a legally enforceable liability or as a post-dated security cheque.

Analysis: The complaint and the materials disclosed a disputed factual controversy as to the purpose and timing of issuance of the cheque. The defence that the cheque was given as a post-dated security cheque and the complainant's case that it was issued towards repayment of a loan raised questions that could be tested only at trial. Inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973 is to be exercised sparingly, and the Court will not undertake appreciation of evidence or resolve disputed facts at the quash stage. The materials disclosed a prima facie case for proceeding with the complaint under the Negotiable Instruments Act, 1881.

Conclusion: The petition for quashing was not maintainable on the disputed facts presented and the proceedings were not liable to be quashed.

Final Conclusion: The criminal complaint was permitted to proceed to trial, and expeditious disposal of the case was directed.

Ratio Decidendi: Disputed questions of fact regarding issuance of a cheque as a post-dated or security cheque, where a prima facie case exists under the cheque dishonour law, cannot be decided in proceedings under Section 482 of the Code of Criminal Procedure, 1973.

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