In Brief
The Supreme Court set aside a High Court order that quashed a criminal complaint under Section 138 of the Negotiable Instruments Act. The complainant alleged that a buyer had issued a cheque of Rs. 20 lakh for goods supplied but the cheque was dishonored twice due to insufficient funds. The High Court had quashed the complaint by holding the cheque was not issued for discharge of any debt or liability. The Court held that at the pre-trial stage, courts cannot conduct detailed factual inquiries on disputed questions. Section 139 of the Act presumes a cheque was issued for discharging debt; this presumption is rebuttable only at trial, not earlier. The complaint disclosed all ingredients of the offence and the matter was remitted for trial.
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