Continuation Of Proclamation Proceedings U/S. 174 A IPC After Settlement In Cheque Dishonour Case Is Abuse of Process of Law: Punjab & Haryana HC

The Punjab & Haryana High Court re-iterated that once the complaint under Section-138 of the Negotiable Instruments Act stands withdrawn in view of an amicable settlement between the parties, the continuation of proceedings under Section 174-A IPC is nothing but an abuse of the process of law.

The Court was considering a petition under Section-528 BNSS, 2023 seeking to quash an FIR under Section 174-A IPC along with all the consequential proceedings arising therefrom.

The single-bench of Justice N.S. Shekhawat observed, " A perusal of the above judgment would show that in a similar case where the FIR had been registered under Section 174-A IPC in view of the order passed in proceedings under Section 138 of the Act, while declaring the petitioner therein as a proclaimed offender, a co-ordinate Bench after relying upon various judgments observed that once the main petition under Section 138 of the Act stands withdrawn in view of an amicable settlement between the parties, the continuation of proceedings under Section 174-A IPC is nothing but an abuse of the process of law. The said aspect was one of the main considerations for allowing the petition and setting aside the order declaring the petitioner therein as a proclaimed person as well as quashing of the FIR under Section 174-A IPC."

The petitioner was represented by Advocate Nikhil Ghai, Advocate Navjot Singh while the respondent was represented by M.S. Bajwa, DAG, Punjab.

Counsel for the petitioner contended that complainant had filed a complaint case under Sections 138 of the Negotiable Instruments Act 1881 against the present petitioner. He submitted that the complainant entered into an agreement with the petitioner to sell a property but despite making payment, the property was not given to him and upon filing a complaint under Section 138 of the Act by the complainant, the petitioner was declared as a proclaimed offender and FIR was accordingly filed against him. Later, they amicably settled the matter and consequently, complaint was ordered to be dismissed as withdrawn by the trial court. He thus contended that the petitioner was declared to be a proclaimed offender, only to secure his presence before the trial court and since the petitioner has compromised the matter with the complainant and the complaint has already been withdrawn by the complainant, no purpose will be served by prosecuting the petitioner under Section 174-A IPC and the FIR and all subsequent proceedings arising therefrom are liable to be quashed by this Court.

The Court accepted the submissions of the Counsel for petitioner and reiterated its finding in Baldev Chand Bansal vs. State of Haryana and another, Ashok Madan vs. State of Haryana and another to affirm that continuation of Proclamation Proceedings under Sec-174 A IPC after Settlement in Cheque Dishonour Case is nothing but abuse of process of law.

"In the present case also, the main case has already been withdrawn by the complainant. Consequently, the continuation of the proceedings arising out order dated 30.11.2019 and the FIR No. 0064 dated 24.02.2021 under Section 174-A, Police Station City Kharar District SAS Nagar (Annexure P-1) would be an abuse of process of the Court," the court observed.

The petition was accordingly allowed.

Cause Title: Jarnail Singh Bajwa vs The State of Punjab (2024:PHHC:141955)

Appearances:

Petitioner- Advocate Nikhil Ghai, Advocate Navjot Singh

Respondent- M.S. Bajwa, DAG, Punjab.

Click here to read/ download order: