The court emphasized that the offence under Section 420 of the IPC was not made out, even accepting everything stated by the complainant.

G. PATRI BASAVANA GOUD, J.

( 1 ) SRI M. Marigowda, learned Additional State Public Prosecutor appears for the respondent.

( 2 ) HEARD on merits.

( 3 ) THE petitioners are being prosecuted for an offence under Section 420 of the IPC at C. C. No. 132 of 1992 on the file of the learned Judicial magistrate First Class, Ron. They are aggrieved with the impugned order, by which the process is directed against them.

( 4 ) ONE T. H. Raibhagi, Managing Director of a partnership firm, filed a complaint before the learned Judicial Magistrate First Class, Ron, under Section 200 of the Cr. P. O. alleging commission of an offence punishable under Section 420 of the IPC by the petitioners herein. The learned Magistrate referred the said complaint under Section 156 (3) of the Cr. P. C. to the jurisdictional police for investigation and report. On investigating into the same, the police have filed the charge-sheet for an offence punishable under Section 420 of the IPC, upon which, the learned Magistrate has taken cognisance and has issued summons by the impugned order.

( 5 ) THE very allegations of the complainant are these. On 29-2-1988, the petitioners purchased from the complainant-firm, sarees worth Rs. 14,195/- on credit. Out of them, sarees worth Rs. 2,200/- were returned on 30-5-1988 on the ground that the said sarees were not in usage, and therefore, not saleable in the area concerned. On return of the said sarees, therefore, the petitioners were due to the complainant a sum of rs. 11,995/ -. Towards the said dues, the petitioners paid in cash Rs. 500/ -. Towards payment of the balance of Rs. 11,495/-, the petitioners, when demanded, gave a cheque on 6-8-1988 for Rs. 5,000/ -. The said cheque came to be dishonoured. Hence, the complaint. On the face of it, the allegations, even if accepted to be entirely true, would attract Section 138 of the Negotiable Instruments Act, 1881 ('n. I. Act' for short, ). As per clause (a) of Section 142 of the N. I. Act, no cognisance could have been taken in respect of the offence under Section 138 of the N. I. Act except upon a complaint in writing made by the payee or the holder in due course of the cheque, as the case may be. Herein, the learned Magistrate has taken cognisance upon a police report under clause (b) of sub-section (1) of Section 190 of the Cr. P. C. , and not upon a complaint under clause (a) of the said sub-section. Taking of such cognisance is prohibited by the above said clause (a) of Section 142 of the N. I. Act.

( 6 ) SRI Marigowda, learned Additional State Public Prosecutor sought to justify the impugned order by submitting that ingredients of Section 420 of the IPC are made out, and as such, taking of cognisance under clause (b) of sub-section (1) of Section 190 of the Cr, P. C. is in order. I have set out the very allegations in the complaint, and as I said earlier, even if everything that is stated therein is accepted, I am of the opinion that, no ingredients of 'cheating' within the meaning of Section 415 of the IPC are to be found. It is absolutely necessary for the purpose of bringing in Section 415 of the IPC that the complainant should have been fraudulently or dishonestly induced by the petitioners in deliver the property concerned. Admittedly, both, the complainant and the petitioners, are traders, and it is in course of their regular business that the petitioners have taken sarees on credit from the complainant. The very fact that sarees worth Es. 2,200/- were returned subsequently on the ground that the said sarees were not in usage in the area, and the further fact that, a sum of Rs. 500/- was paid in cash towards the dues, and the next circumstance that a cheque for Rs. 5,000/- was issued towards discharge of the dues, would all indicate that there was no dishonest intention on the part of the petitioners to deceive the complainant and to dishonestly induce him to part with the sarees. On the other hand, it was essentially a regular commercial transaction with no mala

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