In Brief
The Supreme Court dismissed a criminal appeal challenging the Delhi High Court's refusal to quash proceedings under Section 138 of the Negotiable Instruments Act (cheque dishonour). The appellant argued that cheques were issued as contingent/security for share buyback, not debt payment. The Court held that at the pre-trial quashing stage, factual disputes should not be resolved through detailed enquiry. The legal presumption favouring the complainant when cheques and signatures are undisputed must be respected. Trial courts, not quashing courts, should weigh evidence and evaluate contested facts. Quashing at a preliminary stage ousts the trial court's jurisdiction and gives unmerited advantage to the accused.
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