J&K High Court Quashes Cognizance Order in Cheque Bounce Case

Jammu & Kashmir High Court Quashes Cognizance Order in Cheque Bounce Case for Procedural Lapse

Srinagar:20 June 2025
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The High Court of Jammu & Kashmir and Ladakh at Srinagar has set aside the cognizance order passed by the Additional Special Mobile Magistrate, Pahalgam, in a cheque bounce case filed under Section 138 of the Negotiable Instruments Act.

Justice Sanjay Dhar held that the trial Magistrate had erred in issuing process against the accused without adhering to the mandatory requirement of conducting an inquiry under Section 202 CrPC, as the accused resides beyond the court’s territorial jurisdiction.

The Court referred to the Supreme Court judgment in In Re: Expeditious Trial of Cases under Section 138 of NI Act, 1881 [(2021) 16 SCC 116], reiterating that such inquiry is obligatory when the accused is located outside the jurisdiction.

The complainant, Mrs. Shakeela, had alleged that the petitioner/accused issued two cheques of ₹50 lakh each, which were dishonoured for insufficient funds. A legal notice dated March 15, 2023, was sent via registered post, and the complaint was filed on May 10, 2023. The petitioner challenged the complaint as being time-barred and pointed out contradictory observations by the trial court regarding service of notice.

While the High Court found that the complaint was prima facie within limitation, it noted that the trial Magistrate’s order reflected a mechanical approach, having simultaneously recorded both receipt and refusal of notice by the accused—an inconsistency requiring correction.

Consequently, the High Court quashed the Magistrate’s order and remitted the matter back for fresh consideration in accordance with law, particularly ensuring compliance with Section 202 CrPC.