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2023 Supreme(P&H) 2390

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
JASJIT SINGH BEDI, J.
Akash Joshi & Anr. – Petitioners
Versus
State of Haryana & Anr. – Respondents
CRM-M-43631 of 2019 (O&M)
Decided On : 02-03-2023

Advocates Appeared:
Mr. Rajesh, Advocate; For the Petitioners
Mr. Neeraj Poswal, Asstt. A.G., Haryana.
None for Respondent No.2.

Headnote:(A) Code of Criminal Procedure, 1973 - Section 482 - Indian Penal Code, 1860 - Section 174-A - Quashing of FIR - FIR registered for declaring petitioners as proclaimed persons in proceedings under Section 138 Negotiable Instruments Act - Complaint subsequently withdrawn after amicable settlement between parties - Previous judgments support that continuation of proceedings under IPC Section 174-A constitutes abuse of process of law. (Paras 1, 8, 9, 10, 12)

(B) Jurisdiction of Court - The jurisdiction to quash proceedings exists where continuation is unwarranted due to subsequent developments. (Paras 9.1, 10)

Facts of the case:
Petitioners issued a cheque which was dishonoured; following this, they were declared proclaimed persons, leading to FIR under IPC Section 174-A. A compromise was later reached and the complaint was dismissed.

Findings of Court:
The withdrawal of the primary complaint under Section 138 of the NI Act led to the conclusion that the FIR under Section 174-A was unwarranted.

Issues: Whether a quashing of the FIR is justified following the withdrawal of the primary complaint and the existence of an amicable settlement?

Ratio Decidendi: The court emphasized that the continuation of proceedings under Section 174-A IPC after the withdrawal of the main complaint is an abuse of the process of law, supported by precedents.

Result: The petition is allowed and the FIR is quashed.

Table of Content
1. basis for petition and background facts. (Para 1 , 2 , 3)
2. arguments regarding wrongful proclamation. (Para 4 , 5)
3. court's review of fir registration. (Para 6 , 7)
4. precedents on quashing fir under similar circumstances. (Para 8 , 9 , 10 , 11)
5. outcome of settlement in negotiable instruments case. (Para 12)
6. final order quashing the fir. (Para 13)

JUDGMENT

Jasjit Singh Bedi, J. (Oral)

The prayer in the petition under Section 482 of Cr.P.C. for quashing of the FIR No.1431 dated 01.08.2019 (Annexure P-1) registered under Section 174-A of IPC at Police Station Shivaji Nagar, District Gurugram which was registered consequent to the order dated 13.06.2019 passed by the Judicial Magistrate, 1st Class, Gurugram (Annexure P-4) declaring the petitioners as proclaimed persons in a complaint case under Section 138 Negotiable Instruments Act, 1881.

2. The brief facts of the case are that in discharge of their legal liability, the petitioners/accused issued a cheque bearing No.503918 dated 30.05.2016 for an amount of Rs.1,09,365/- drawn on Axis Bank Ltd., Sector 62, Noida, U.P. 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 petitioners/accused and they were summoned to face trial. Subsequently, they were declared proclaimed persons vide order dated 13.06.2019 (Annexure P-4). Pursuant to the said order, an FIR No.1431 dated 01.08.2019 (Annexure P-1) registered under Section 174-A of IPC at Police Station Shivaji Nagar, District Gurugram came to be registered against them.

3. Thereafter, a compromise was effected between the parties and the complaint was ordered to be dismissed as withdrawn in terms of the orders dated 13.09.2019 and 14.09.2019 (Annexures P-3 colly). 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 13.06.2019 (Annexure P-4) passed by the Judicial Magistrate, 1st Class, Gurugram and the consequential FIR (Annexure P-1) has been filed.

4. The learned counsel for the petitioners/accused submits that they had wrongly been declared proclaimed persons and on learning about the same, the petitioners compromised the matter with the complainant/respondent No.2. Thereafter, on 13.09.2019 and 14.09.2019 (Annexures P-3 colly), 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 13.09.2019 and 14.09.2019 (Annexures P-3 colly).

5. The learned State counsel has opposed the present petition and has submitted that the FIR has been correctly registered.

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 petitioners were declared as proclaimed persons 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 174-A 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 Court

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