Excelsior Correspondent
SRINAGAR, Feb 21: The High Court held that the question whether a cheque was issued merely as security or in discharge of a legally enforceable debt is essentially a matter of evidence and cannot ordinarily be adjudicated at the stage of quashing criminal proceedings.
Declining to quash proceedings arising out of a cheque dishonor complaint, Justice Sanjay Parihar has held that disputed questions relating to the nature of the cheque must be left to be tested during trial.
The court made these observations in a petition seeking quashing of complaint proceedings pending before the Trial Court under Section 138 of the Negotiable Instruments Act. The respondent-complainant had instituted the complaint alleging dishonour of a cheque amounting to Rs 35 lakh. As per the case, the complainant had booked one villa constructed by the petitioner for a consideration exceeding Rs.35 lakh.
The transaction, however, did not fructify, and towards discharge of the alleged liability, the petitioner is stated to have issued a cheque for Rs. 35 lakh. Upon presentation, the cheque was dishonoured, leading to initiation of proceedings under Section 138 of the Act.
The High Court cautioned that while exercising inherent jurisdiction, it cannot undertake an appreciation of disputed questions of fact or conduct a mini-trial. Concluding that no case was made out for exercise of inherent jurisdiction under Section 482 Cr.P.C., the Court dismissed the petition along with all connected applications. The Trial Court was directed to proceed with the complaint in accordance with law and to endeavour to dispose of the same expeditiously.
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