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Criminal LawSupreme Court of India

M/S Sri Om Sales vs. Abhay Kumar @ Abhay Patel & Anr.

Not available · 2025 INSC 1474Decided 19 Dec 2025
Not available
Justice Manoj Misra · Justice Ujjal Bhuyan

Background

The appellant, a seller, had supplied goods to the first respondent, who issued a cheque of Rs. 20,00,000 in payment. The cheque bounced twice for insufficient funds. After a legal notice went unanswered, the appellant filed a criminal complaint under Section 138 of the Negotiable Instruments Act, and the Magistrate summoned the respondent. The Patna High Court later quashed the entire complaint under Section 482 of the CrPC, holding that the cheque was not issued for the discharge of any debt or liability.

Decision Breakdown

The Supreme Court held that the High Court exceeded its jurisdiction by conducting a detailed factual inquiry into whether the cheque was issued for a legally enforceable debt at the pre-trial stage. Under Section 139 of the NI Act, a presumption arises that a cheque was issued to discharge a debt, and this presumption can only be rebutted through evidence at trial, not through a summary Section 482 inquiry. Since the complaint disclosed all the necessary ingredients of a Section 138 offence, it should not have been quashed. The Court set aside the High Court's order and restored the complaint before the Magistrate, clarifying it expressed no view on the actual merits of whether the cheque was for a genuine debt.

Lesson Learnt

When a cheque bounces and a Section 138 complaint is properly filed, courts should not use their inherent quashing powers to short-circuit the trial by pre-judging factual disputes. The accused must raise and prove such defenses (like disputing the debt) during the actual trial, not get the case dismissed at the threshold.

M/S Sri Om Sales vs. Abhay Kumar @ Abhay Patel & Anr. – Legal Case Shots | LegalAware