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        Case ID :

        2023 (9) TMI 703 - HC - Indian Laws

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        Lost or stolen cheque defence is a trial issue, not a ground to quash summons under Section 138. A disputed plea that a cheque was lost or stolen before its alleged issuance does not, by itself, justify quashing summons where the complaint and ...
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                            Lost or stolen cheque defence is a trial issue, not a ground to quash summons under Section 138.

                            A disputed plea that a cheque was lost or stolen before its alleged issuance does not, by itself, justify quashing summons where the complaint and pre-summoning material disclose a prima facie offence under Section 138 of the Negotiable Instruments Act, 1881. The court held that such a defence is factual in nature and must be tested at trial through evidence and cross-examination, not conclusively at the cognizance stage or in inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973. As the Magistrate had sufficient material to issue process, the challenge to the summoning order failed.




                            Issues: Whether the summoning order under Section 138 of the Negotiable Instruments Act, 1881 should be quashed in exercise of inherent powers on the ground that the cheque was claimed to have been lost or stolen prior to its issuance and that such defence negated the existence of a legally enforceable liability.

                            Analysis: The complaint and pre-summoning material disclosed the ingredients necessary for taking cognizance under Section 138 of the Negotiable Instruments Act, 1881. The plea that the cheque had been lost in 2014, much before the alleged issuance date, was a disputed factual defence requiring evidence. Such a defence could not be conclusively examined at the stage of cognizance or while considering interference with the summoning order under Section 482 of the Code of Criminal Procedure, 1973. The accused remained at liberty to establish the defence during trial, including by cross-examination and other evidence. The material before the Magistrate was sufficient to justify issuance of summons.

                            Conclusion: The challenge to the summoning order failed and the petition for quashing was rejected.

                            Ratio Decidendi: A disputed plea that a cheque was lost or stolen before its alleged issuance is a matter for trial and does not, by itself, warrant quashing of summons where the complaint otherwise discloses a prima facie case under Section 138 of the Negotiable Instruments Act, 1881.


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