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2023 Supreme(All) 2370

IN THE HIGH COURT OF ALLAHABAD
SAMIT GOPAL, J.
Sudhir Kumar - Applicant
Versus
State of U.P. and anr. - Opposite Parties
APPLICATION U/S 482 NO. 18408 OF 2023.
Decided On : 17-05-2023

Advocates appeared:
For the Applicant :Anand Prakash Dubey Advocate.
For the Opposite Parties : G.A.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Application filed for quashing proceedings in a complaint case for dishonor of cheque - Court laid emphasis on the compensatory aspect rather than punitive in case of cheque dishonor - It was noted that reliance on earlier Supreme Court judgments emphasized the need for prompt settlement. (Paras 8, 10, 11, and 12)

(B) Criminal Procedure Code, 1973 - Section 482 - Powers of High Court - Application under Section 482 Cr.P.C., to quash criminal proceedings, denied as prima facie case made out against the applicant with no illegality found in the summoning order. (Paras 7 and 8)

Facts of the case:
The applicant was summoned under Section 138 N.I. Act for allegedly issuing dishonored cheques to the complainant concerning a transaction totaling Rs. 5,00,000/-. The applicant claimed the proceedings were an abuse of the process of the court.

Findings of Court:
The summoning order does not suffer from any irregularity, and a case was made out against the applicant. The court directed the accused to attempt compromise while ensuring no coercive measures during the period.

Issues: The main questions were whether the applicant issued the checks and the nature of the debt asserted by the complainant.

Ratio Decidendi: The court reaffirmed that monetary recovery is of primary importance in dishonor cases and emphasized better timing for compromise to avoid delays in justice.

Result: Application disposed of with directions for potential settlement.

Table of Content
1. prayer for quashing proceedings and stay (Para 3 , 5)
2. overview of the complaint and dishonored cheques (Para 4)
3. order summoning applicant upheld (Para 7)
4. encouragement for amicable settlement (Para 8 , 9)
5. directions for compounding of the offense without coercive measures (Para 11 , 12 , 13)
6. application disposed off with directions (Para 15)

JUDGMENT

Samit Gopal, J.

List revised.

2. Heard Sri Anand Prakash Dubey, learned counsel for the applicants, Sri Raj Kumar Gupta, learned counsel for the State and perused the record.

3. The present application under Section 482 Cr.P.C. has been filed by the applicantSudhir Kumar with the following prayer:-

"It is, therefore, most respectfully prayed that this Hon'ble Court may graciously be pleased to allow this application and quash the entire proceeding in pursuance of the summoning order dated 21.12.2019 in Complaint Case No. 11716 of 2020, under Sections 138 N.I. Act, Police Station Kharkhauda, District Meerut pending before Additional Chief Judicial Magistrate, / Additional Civil Judge (S.D.)-8, Meerut.

It is further prayed that this Hon'ble Court may graciously be pleased to stay the further proceedings of Complaint Case No. 11716 of 2020, under Sections 138 N.I. Act, Police Station Kharkhauda, District Meerut pending before Additional Chief Judicial Magistrate, / Additional Civil Judge (S.D.)-8, Meerut, otherwise the applicant shall suffer irreparable loss and injury. And / or to pass such other and further order which this Hon'ble Court may deem fit and proper under the circumstances of the case."

4. The facts of the case are that a complaint under section 138 of the N.I. Act dated 16.10.2019 was filed by the opposite party no.2 against the applicant alleging therein that cheque no.011729 dated 19.06.2019 of Rs. 1,00,000/- of Allahabad Bank, Ganga Nagar Branch, Meerut as part payment was given by the applicant to the opposite party no.2. The said cheque was deposited in the bank account of the complainant which stood dishonored. Then subsequently on 29.08.2019 the applicant issued a cheque of Rs. 3,00,000/- dated 30.08.2019 bearing no. 011736 of Allahabad Bank, Ganga Nagar Branch, Meerut as part payment of Rs. 5,00,000/-. Subsequently on the assurance of the applicant, the said cheque was deposited in the bank account of the complainant in Bank of Baroda, P.L. Sharma Road, Meerut on 30.08.2019 which stood dishonored on 31.08.2019 with the comment 'fund insufficient'. The complainant then gave a notice dated 17.09.2019 through his lawyer to the accused. The said notice was delivered on 18.09.2019 to the accused. Despite aware of the said notice, the accused has not paid the money. A complaint has thus been filed. The trial court summoned the applicant vide its order dated 21.12.2019 under section 138 N.I. Act to face trial.

5. Learned counsel for the applicant submits that the applicant has been falsely implicated in the present case. It is submitted that there is no legal enforceable debt upon the applicant. The criminal proceedings are with malafide intentions and abuse of process of court. It is further submitted that the story as narrated by the opposite party no.2 in the complaint is a totally false, frivolous and a concocted story. The proceedings as initiated against the applicant are abuse of process of court. It is further submitted that the proceedings as such be quashed.

6. Learned counsel for the State has been heard.

7. After hearing the learned counsel for the parties and perusing the records, it is evident that the cheque issued by the applicant in favour of the complainant stood dishonored. Despite service of notice the said payment has not been done to the complainant. Prima facie case is made out against the applicant. The order summoning the applicant does not suffer from any irregularity or illegality. The prayer for quashing of the proceedings is thus refused.

8. In the last, the learned counsel has urged before the Court that the f

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