Section 202 inquiry in cheque dishonour complaints must precede process where jurisdictional limits require it.

In a complaint under Section 138 of the Negotiable Instruments Act, where process had been issued against an accused having an office outside the court's territorial jurisdiction, compliance with Section 202 of the Code of Criminal Procedure was treated as necessary before further action. The governing directions for such inquiry permit the Magistrate to examine witnesses on affidavit and, in appropriate cases, confine the inquiry to documents. Accordingly, where the process order is set aside for non-compliance with Section 202, the matter may be remitted to the Magistrate to continue from that stage and conduct the inquiry in accordance with the applicable directions.

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Issues: Whether the complaint proceedings under Section 138 of the Negotiable Instruments Act, 1881 required the Magistrate to proceed from the stage of inquiry under Section 202 of the Code of Criminal Procedure, 1973 after the order issuing process was set aside.

Analysis: The complaint was filed under Section 138 of the Negotiable Instruments Act, 1881 and the Magistrate had issued process. The High Court set aside that order on the ground that, since the accused had its office outside jurisdiction, an inquiry under Section 202 of the Code of Criminal Procedure, 1973 was necessary. The order also noted the governing directions for inquiry under Section 202 in cases under Section 138, including that witness evidence may be taken on affidavit and that the inquiry may, in suitable cases, be confined to documents. The proper course was therefore to restore the matter to the trial court from the stage of Section 202 and require compliance with the governing directions.

Conclusion: The matter was directed to proceed from the stage of inquiry under Section 202 of the Code of Criminal Procedure, 1973, and the appeal was partly allowed.

Ratio Decidendi: In a complaint under Section 138 of the Negotiable Instruments Act, 1881, where the process order is set aside for want of compliance with Section 202 of the Code of Criminal Procedure, 1973, the matter may be restored to the Magistrate to conduct the inquiry from that stage in accordance with the applicable directions governing such inquiry.

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