Supreme Court Overturns Patna HC's Dismissal of Cheque Dishonour Case

The Supreme Court overturned a Patna High Court order dismissing a cheque dishonour complaint. The high court erred by conducting a detailed pre-trial inquiry rather than checking for prima facie evidence. The case, involving a dishonoured Rs 20 lakh cheque, has been reinstated for trial.

The Supreme Court has overturned a Patna High Court decision that had quashed criminal proceedings related to a cheque dishonour complaint. The apex court criticized the high court for conducting a 'roving enquiry' at the pre-trial stage, stating the high court overstepped its jurisdiction.

A bench comprised of Justices Manoj Misra and Ujjal Bhuyan noted that under section 482 of the Code of Criminal Procedure, the high court improperly evaluated whether the cheque was issued to discharge a debt or liability entirely at the preliminary stage of the proceedings.

In its detailed orders, the Supreme Court emphasized that the high court's action was erroneous as the case met the prima facie ingredients of section 138 of the Negotiable Instruments Act, which pertains to cheque dishonour due to insufficient funds. The top court allowed the appeal and reinstated the complaint for trial.