Statutory presumption for cheque dishonour cases bars quashing where security cheque defence needs trial evidence.

Where cheque issuance and signatures are admitted, the statutory presumption under Section 139 of the Negotiable Instruments Act, 1881 operates in favour of the complainant that the cheque was issued towards a legally enforceable debt or liability. A defence that the cheque was only a security cheque, or that no enforceable liability existed, raises a disputed question of fact that must ordinarily be tested at trial by evidence. In these circumstances, the High Court's inherent power under Section 482 of the Code of Criminal Procedure, 1973 is not normally available to quash the summoning order or complaint proceedings under Section 138. The quashing petition was therefore not maintainable on the pleaded grounds, and the proceedings were permitted to continue.

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Issues: Whether the summoning orders and complaint proceedings under Section 138 of the Negotiable Instruments Act, 1881 could be quashed under Section 482 of the Code of Criminal Procedure, 1973 on the ground that the cheque was issued only as a security cheque and not in discharge of a legally enforceable debt or liability.

Analysis: The cheque issuance and signatures were admitted, and the dishonour, statutory notice, and filing of the complaint were also established. In such circumstances, the presumption under Section 139 of the Negotiable Instruments Act, 1881 operated in favour of the complainant that the cheque was issued towards a legally enforceable debt or liability. The plea that the cheque was only a security cheque raised a disputed question of fact, which had to be tested in trial by adducing evidence and could not be ined at the pre-trial stage for quashing. The inherent jurisdiction under Section 482 of the Code of Criminal Procedure, 1973 was therefore not fit to be invoked to stifle the proceedings.

Conclusion: The quashing petition was not maintainable on the pleaded grounds, and the proceedings under Section 138 of the Negotiable Instruments Act, 1881 were allowed to continue.

Ratio Decidendi: Where issuance of the cheque and its signature are admitted, the statutory presumption under Section 139 of the Negotiable Instruments Act, 1881 applies, and a defence that the cheque was merely a security cheque or that no legally enforceable debt existed must ordinarily be tested at trial rather than in proceedings for quashing under Section 482 of the Code of Criminal Procedure, 1973.

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