Section 138 complaint averments are sufficient when they show cheque issuance toward a pre-existing liability and statutory ingredients.

A complaint under Section 138 of the Negotiable Instruments Act is sufficient if it contains factual averments showing that the cheque was issued towards a full or partial pre-existing debt or liability. Detailed evidence need not be pleaded at the complaint stage, and the supporting facts may be proved later. On this basis, allegations of business and financial dealings and issuance of cheques in discharge of liability were treated as enough to attract the statutory ingredients. The quashing order was therefore unsustainable, and the complaints were held maintainable for further proceedings in accordance with law.

---

---

Issues: Whether the complaints under Section 138 of the Negotiable Instruments Act, 1881 were liable to be quashed for want of averments showing a pre-existing debt or liability and whether the complaint disclosed the necessary ingredients to proceed.

Analysis: The complaint specifically averred that the parties had business and financial transactions and that the cheques were issued in discharge of part liability towards the complainant-company. It was held that a complaint under Section 138 need only contain factual averments sufficient to satisfy the statutory ingredients, namely issuance of the cheque towards full or partial pre-existing debt or liability. It is not necessary to plead evidence in the complaint itself, and the specific plea can be substantiated later by evidence. On this reading, the complaint contained the necessary averments to attract the statutory consequences and the High Court erred in treating the absence of detailed factual foundation as fatal.

Conclusion: The quashing order was unsustainable, and the complaints were held to be maintainable for further proceedings in accordance with law.

---