Negotiable Instruments Act, 1881
Section 138—Dishonour of cheque—Petition for quashing of impugned notice framed under Section 251 of CrPC and summoning order—Case of second respondent that gold bullion supplied to petitioners for job work and cheque in question cover the total value of gold delivered to petitioners—It is alleged that second respondent approached the petitioners for finished goods but they failed to deliver the same—As per agreed terms of the MOU, the second respondent presented the cheques for encashment, but the same were returned unpaid with remarks “funds insufficient”—Petitioners denied the allegations and claimed that cheques were given as security and not for payment of any amount of money in discharge of any debt or other liability—Question as to whether security cheques given by petitioners were towards any future consideration or legally enforceable debt—Debt or any liability is to exist when the cheque in question is presented for encashment—Legal presumption of cheques having been issued in the discharge of liability must also receive due weightage—In a situation where accused moves court for quashing even before the trial has commenced, the court’s approach should be careful not to prematurely extinguish the case by disregarding the legal presumption supporting the complaint—When there is a legal presumption and where facts are contested, it would not be judicious for the court to separate the wheat from the chaff under the garb of inherent powers—Power of quashing criminal proceedings while exercising power under Section 482 of the CrPC should be exercised sparingly and with circumspection—Court can exercise power under Section 482 of CrPC, if the complaint on the face of it does not make out any case against accused or if any evidence of an unimpeachable nature is produced—Petitioners, at best, have raised questions of fact mixed with questions of law which cannot be examined in the limited jurisdiction under Section 482 of CrPC, for it is desirable that the same be left to be adjudicated upon based on the evidence led by both sides at the trial—Petition dismissed.
[Paras 46 to 53]