Threshold quashing in cheque dishonour cases is exceptional where the complaint discloses a prima facie offence and process is issued.

A complaint under Section 138 of the Negotiable Instruments Act that alleged issuance of a cheque, dishonour for insufficiency of funds, and service or deemed service of demand notice disclosed a prima facie offence. The Gujarat HC held that the order issuing process under Section 204 CrPC, made after Section 202 inquiry, could not be quashed under Section 482 CrPC at the threshold because inherent power is to be used sparingly and only in exceptional cases. The defence version could not be examined in detail at the quashing stage, and the proceedings were permitted to continue.

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Issues: Whether the criminal complaint and the order issuing process under Section 204 of the Code of Criminal Procedure should be quashed in exercise of inherent powers under Section 482 of the Code of Criminal Procedure in a prosecution under Section 138 of the Negotiable Instruments Act.

Analysis: The complaint disclosed issuance of a cheque, its dishonour for insufficiency of funds, issuance of demand notice, and service or deemed service of notice on the accused. The trial court had also considered the inquiry under Section 202 of the Code of Criminal Procedure before issuing process. The governing principle applied was that quashing at the threshold is an exceptional remedy and should be exercised sparingly, only where the complaint does not disclose a prima facie offence or where the case falls within the recognised categories warranting interference. On the material placed, the allegations could not be said to be inherently improbable or incapable of constituting an offence, and the Court declined to enter into a detailed appraisal of the defence version at the quashing stage.

Conclusion: The request to quash the complaint and the process order was not accepted; the proceedings were allowed to continue.

Ratio Decidendi: Inherent powers under Section 482 of the Code of Criminal Procedure are to be used sparingly, and a complaint disclosing the ingredients of the offence and a prima facie case should not be quashed at the threshold.

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