Case Note & Summary
The applicants, Sanjay Hapgunde and Pradip Kalyane, filed a criminal application under Section 482 of the Code of Criminal Procedure, 1973, seeking quashing of FIR No. 01974 of 2018 registered at Nanded police station for offences under Section 138 of the Negotiable Instruments Act, 1881. The FIR was lodged by respondent no.2, Sunita Gulzarwad, alleging that a cheque issued by the applicants was dishonoured. The applicants contended that there was no existing debt or liability and that the cheque was given as a security for a loan that was already repaid. The State of Maharashtra and the complainant were respondents. The High Court, after hearing arguments, granted leave to amend the application to include quashing of proceedings before the trial court. The Court examined the complaint and found that the complainant did not provide any evidence of a legally enforceable debt. The Court held that the essential ingredients of Section 138 were not satisfied, as the cheque was not issued in discharge of any debt or liability. Consequently, the Court quashed the FIR and all proceedings arising therefrom. The judgment was delivered by a Division Bench comprising T.V. Nalawade and Smt. Vibha Kankanwadi, JJ., with the opinion authored by Smt. Vibha Kankanwadi, J.
Headnote
A) Criminal Law - Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Quashing of FIR - The applicants sought quashing of FIR alleging cheque dishonour, contending that the cheque was not issued for any existing debt or liability - The Court examined the complaint and found that the complainant failed to show any legally enforceable debt - Held that mere issuance of cheque without proof of debt does not constitute offence under Section 138 (Paras 1-5).
Issue of Consideration
Whether the FIR and proceedings under Section 138 of the Negotiable Instruments Act, 1881, can be quashed when there is no prima facie evidence of a legally enforceable debt or liability.
Final Decision
The Court allowed the application, quashed the FIR and all proceedings arising therefrom.
Law Points
- Section 138 Negotiable Instruments Act
- 1881
- presumption under Section 139
- existence of legally enforceable debt
- quashing of FIR under Section 482 CrPC
- inherent powers of High Court
