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2023 Supreme(P&H) 2318

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
JASJIT SINGH BEDI, J.
Arvinder Singh. – Petitioner
Versus
State of Haryana & Anr. – Respondent
CRM-M-21699 of 2020
Decided On : 22-03-2023

Advocates Appeared:
Mr. Karan Singh, Advocate; For the Petitioner
Mr. Neeraj Poswal, Assistant Advocate General, Haryana.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 482 - Negotiable Instruments Act, 1881 - Section 138 - Declaration of proclaimed person - Petition for quashing order of declaration as proclaimed person due to withdrawal of main complaint - No further prosecution warranted post-compromise between parties. (Paras 2, 12)

(B) Quashing Proceedings - Continuation of proceedings under Section 174A IPC after withdrawal of main complaint observed as abuse of process. (Paras 8, 10)

Facts of the case:
The petitioner was declared a proclaimed person after a cheque was dishonoured in a complaint under Section 138 of the Negotiable Instruments Act. The complaint was later dismissed as withdrawn following a compromise between parties. (Paras 2-3)

Findings of Court:
Continuation of proceedings under Section 174A IPC after the primary complaint was withdrawn is deemed an abuse of the legal process. (Paras 9-10)

Issues: The court addressed whether the petitioner can be declared a proclaimed person after the main complaint has been resolved through compromise and the relevancy of the charges under Section 174A IPC. (Paras 4, 12)

Ratio Decidendi: Once a complaint under Section 138 is withdrawn due to an amicable settlement, continuing proceedings under Section 174A IPC is an abuse of law, and such orders must be quashed. (Paras 8-10)

Result: Petition allowed; order declaring proclaimed person and subsequent FIRs quashed.

Table of Content
1. factual background of the case. (Para 1 , 2 , 3)
2. arguments regarding declaration as proclaimed person. (Para 4 , 5)
3. court's observations on withdrawal of complaint. (Para 6 , 7)
4. court's analysis on similar precedents affecting the case. (Para 8 , 9 , 10)
5. the outcome of proceedings due to settlement. (Para 11)
6. final ruling on quashing of orders. (Para 12)

JUDGMENT

Jasjit Singh Bedi, J. (Oral)

This is a petition under Section 482 of Cr.P.C. for quashing of the order dated 22.07.2019 (Annexure P-9) passed by the Judicial Magistrate, 1st Class, Yamuna Nagar at Jagadhari, whereby the petitioner has been declared a proclaimed person in complaint case under Section 138 of the Negotiable Instruments, 1881 bearing No. NIA -1988-2017 titled as "M/s Gulshan Jewellers v. Arvinder Singh" and the consequential FIRs No.1203 and 1243 both dated 03.10.2019 (Annexure P-10 & P-11) registered under Section 174A IPC at Police Station City Jagadhri, District Yamuna Nagar.

2. The brief facts of the case are that in discharge of his legal liability, the petitioner/accused issued a cheque for amount of Rs.1,00,000/- dated 07.09.2017 in favour of respondent No.2-complainanat. The said cheque came to be dishonoured. Pursuant thereto, as no payment was made in lieu of the dishonoured cheque, a complaint under section 138 of Negotiable Instruments Act came to be instituted against the petitioner/accused and he was summoned to face trial. Subsequently, he was declared a proclaimed person vide order dated 22.07.2019 (Annexure P-9) Pursuant to the said order, FIR No.1203 and 1243 both dated 03.10.2019 (Annexure P-10 & P-11) came to be registered under Section 174A of IPC at Police Station City Jagadhri, District Yamuna Nagar against him.

3. Thereafter, a compromise was effected between the parties and the complaint was ordered to be dismissed as withdrawn in terms of the order dated 05.03.2020 (Annexure P-12). In view of the dismissal of the complaint under section 138 of Negotiable Instruments Act on the basis of the compromise, the present petition for quashing of the aforesaid order dated 22.07.2019 (Annexure P-9) passed by the Judicial Magistrate, 1st Class Yamuna Nagar at Jagadhari and the consequential FIRs (Annexure P-10 & P-11) has been filed.

4. The learned counsel for the petitioner/accused submits that he had wrongly been declared a proclaimed person and on learning about the same, the petitioner compromised the matter with the complainant/respondent No.2. Thereafter, on 05.03.2020, the counsel for respondent No.2-complainant in the Trial Court got recorded his statement that as per his instructions, the complainant did not want to proceed further with the present complaint and wanted to withdraw the same. Based on the said statement, the complaint was ordered to be dismissed as withdrawn on 07.03.2020 (P-12).

5. The learned State counsel has opposed the present petition and has submitted that the petitioner has rightly been declared a proclaimed offender.

6. This Court has heard the learned counsel for the parties and has perused the paper-book.

7. From the above-said facts and circumstances, it is apparent that the present FIR was registered in view of the fact that the petitioner was declared as a proclaimed person in the proceeding under the Negotiable Instruments Act, 1881. The impugned complaint itself has been withdrawn.

8. A co-ordinate Bench of this Court in CRM-M-43813-2018 titled as "Baldev Chand Bansal v. State of Haryana and another", decided on 29.01.2019 has held as under:-

    "Prayer in this petition is for quashing of FIR No.64 dated 15.02.2017 filed under Section 174A of the Indian Penal Code registered at Police Station Sector-5, Panchkula and all other subsequent proceedings arising thereof as well as order dated 24.10.2016 passed by the trial Court vide which a direction was issued to register the aforesaid FIR.

    xxx xxx xxx

    Learned counsel for the petitioner has relied upon the decisions rendered by this

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