Bank merger challenge to cheque dishonour prosecution rejected as premature; trial court may examine merger defence.

Applications under the challenged provision sought to quash Section 138 prosecutions by asserting that a bank merger had rendered the cheques invalid; the court held that applicants failed to produce any material establishing the merger's legal effect and that the interlocutory challenge was therefore premature and liable to delay statutorily expedited cheque dishonour proceedings. The applications were dismissed as without merit, while the court permitted the defendants to raise and have the trial court examine any defence based on the alleged merger in accordance with law.

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Issues: Whether applications under Section 528 of BNSS, 2023 challenging the initiation of criminal proceedings under Section 138 of the Negotiable Instruments Act on the ground that the cheques had become invalid due to merger of the issuing bank are maintainable and liable to be allowed.

Analysis: The dispute concerns three complaints under Section 138 of the Negotiable Instruments Act alleging dishonour of cheques. The challenge rests on the asserted merger of the issuing bank and the consequence that the cheques were invalid for presentation. The applicants did not place on record any notification, document, or evidence establishing the terms or legal effect of the alleged merger or showing that the merger rendered the cheques invalid. The statutory objective of expeditious disposal of complaints under Section 143 of the Negotiable Instruments Act was noted; absent substantiating material, the interlocutory challenge appears aimed at delaying the trial. The judgment leaves open the substantive question of the merger's legal effect for determination by the trial court, directing that any such defence be raised and examined there in accordance with law.

Conclusion: The applications under Section 528 of BNSS, 2023 are without merit and are dismissed finally, with liberty to the applicant to raise and have the trial court examine any defence regarding the alleged bank merger.

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