Cheque dishonour quashing limited by Section 139 presumption; disputed security-cheque defence must go to trial.

In a petition under Section 482 CrPC challenging a Section 138 NI Act complaint, the High Court held that quashing was unavailable because the Court cannot assess disputed facts at the initial stage. Since the petitioners did not dispute the cheques or signatures, and their pleas that the cheques were security cheques and that the supplied goods were defective raised matters for trial, the statutory presumption under Section 139 continued to operate. The complaint and summoning order disclosed a prima facie case based on preliminary evidence, and the existence of legally enforceable liability could not be negated in quashing proceedings. The complaint and process order were therefore not quashed.

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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 and the summoning order could be quashed in exercise of inherent powers under Section 482 of the Code of Criminal Procedure, 1973 on the grounds that the cheques were security cheques and that no legally enforceable liability subsisted.

Analysis: The complaint and the summoning order could be interfered with only within the limited parameters governing inherent jurisdiction. At the stage of quashing, the Court must proceed on the basis of the complaint averments and cannot undertake appreciation of evidence or decide disputed factual questions. The petitioners did not deny the signatures or issuance of the cheques, and the plea that they were security cheques and that the goods supplied were defective raised factual disputes requiring trial. In the presence of the statutory presumption under Section 139 of the Negotiable Instruments Act, 1881, the existence of a legally enforceable liability could not be negated at the quashing stage. The order issuing process was based on preliminary evidence and disclosed a possible view warranting trial.

Conclusion: The complaint and the summoning order were not liable to be quashed, and the petition failed.

Ratio Decidendi: In proceedings under Section 482 of the Code of Criminal Procedure, 1973, disputed questions of fact and the defence to a cheque dishonour complaint cannot be examined where the cheque and signature are admitted and the statutory presumption under Section 139 of the Negotiable Instruments Act, 1881 operates.

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