Pre-summoning documentary inquiry supports cheque-dishonour proceedings, while disputed liability and premature presentation defences require trial evidence.

Pre-summoning inquiry in cheque-dishonour complaints may be satisfied through the complainant's affidavit and supporting documents where they enable the Magistrate to assess whether sufficient grounds exist to proceed; personal examination of witnesses is not indispensable. Once cheque execution is admitted, presumptions of consideration and a legally enforceable debt or liability arise. Defences that cheques were prematurely presented or that no amount was due concern disputed facts and underlying contractual liability, requiring evidence at trial rather than a pre-trial factual inquiry in quashing jurisdiction. The notes state that prosecution may proceed while preserving trial defences.

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Issues: (i) Whether the cognizance orders were invalid for non-compliance with the mandatory inquiry under Sections 200 and 202 of the Code of Criminal Procedure; (ii) Whether the cheque-dishonour complaints and cognizance orders warranted quashing under Section 482 of the Code of Criminal Procedure on the plea that the cheques were prematurely presented and no liability was due.

Issue (i): Whether the cognizance orders were invalid for non-compliance with the mandatory inquiry under Sections 200 and 202 of the Code of Criminal Procedure.

Analysis: The Magistrate considered the complaints, the complainant's affidavit as pre-summoning evidence, the original cheques, dishonour memos, demand notices, the MoU and supporting documents before recording satisfaction that a prima facie offence was made out. An inquiry under Section 202 may, in suitable cases, be confined to examination of documents for determining whether sufficient grounds exist to proceed; personal examination of witnesses is not indispensable in a complaint under Section 138.

Conclusion: The mandatory pre-summoning inquiry was duly complied with; the challenge to cognizance on this ground fails, against the petitioners.

Issue (ii): Whether the cheque-dishonour complaints and cognizance orders warranted quashing under Section 482 of the Code of Criminal Procedure on the plea that the cheques were prematurely presented and no liability was due.

Analysis: The complaints prima facie disclosed the ingredients of cheque dishonour, including issuance and dishonour of cheques, service of statutory demand notices and non-payment. Once execution of the cheques is admitted, presumptions of consideration and of issuance towards a legally enforceable debt or liability arise under Sections 118 and 139 of the Negotiable Instruments Act, 1881. The plea concerning the due dates, alleged premature presentation and the underlying contractual liability involves disputed facts requiring evidence and may be advanced at trial to rebut those presumptions. The inherent power to quash cannot be used for a roving pre-trial inquiry into such factual defences.

Conclusion: The complaints and cognizance orders are not liable to be quashed; the petitioners must face trial and may rebut the statutory presumptions by evidence, against the petitioners.

Final Conclusion: The prosecution for cheque dishonour proceeds, with all trial defences left open for determination on evidence and with an expeditious trial required.

Ratio Decidendi: Where a Section 138 complaint is supported by an affidavit and documents sufficient for the Magistrate's satisfaction under Section 202, and the cheque's execution is admitted, factual defences concerning the underlying liability must ordinarily be tried rather than adjudicated in quashing jurisdiction.

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