Whether the court can quash prosecution for dishonour of cheque if cheque is returned with endorsement that Account Frozen?

 Learned counsel for the respondent further submits that the Bank Managers (DW2 and DW3) have specifically deposed that no such bank account was opened and maintained in their bank.

On the other hand, learned counsel for the appellant pointed out Annexure P-2 which is the dishonoured cheque and return

memo where it has been endorsed as “ACCOUNT FROZEN”.

After perusing Annexure P-2, it is surprising that on the

one hand, the Bank Managers have specifically deposed that no such bank account was opened and maintained in their bank while on the other hand the cheque drawn by the respondent in favour of the appellant, was returned with the remark “Account Frozen” in respect of the same cheque. The bank account has been mentioned on the cheque and the endorsement to the effect “Account Frozen” will presuppose that an account existed. This is a matter which is to be taken into consideration by the trial court in detail, and not merely on the evidence of DW2 and 3. The parties will have to go through a full-fledged trial. In any event, it was not a matter the proceedings could have been quashed. We, accordingly, feel it was premature to quash the

complaint filed by the appellant herein, by the High Court.

IN THE SUPREME COURT OF INDIA

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL No.289 OF 2022

VIKRAM SINGH  Vs SHYOJI RAM 

Dated: FEBRUARY 18, 2022.

The Court is convened through Video Conferencing.

Leave granted.

The instant appeal, by way of special leave, is directed

against order dated 20.03.2018 passed by the High Court of

Judicature for Rajasthan at Jaipur in S.B.Criminal Writ Petition

No.242 of 2018 whereby the High Court allowed the writ petition

preferred by the respondent and quashed and set aside the

proceedings in Case No.3091 of 2013.

Heard learned counsel appearing on behalf of the

appellant as also the learned counsel appearing on behalf of the

respondent and carefully perused the material placed on record.

Learned counsel for the respondent vehemently contends

that there is no reason to continue the trial as the appellant has

not made out a case under Section 138 of the Negotiable Instruments

Act, 1881 against his client. Learned counsel for the respondent

further submits that the Bank Managers (DW2 and DW3) have

specifically deposed that no such bank account was opened and

maintained in their bank.

On the other hand, learned counsel for the appellant

pointed out Annexure P-2 which is the dishonoured cheque and return

memo where it has been endorsed as “ACCOUNT FROZEN”.

After perusing Annexure P-2, it is surprising that on the

one hand, the Bank Managers have specifically deposed that no such

bank account was opened and maintained in their bank while on the

other hand the cheque drawn by the respondent in favour of the

appellant, was returned with the remark “Account Frozen” in respect

of the same cheque. The bank account has been mentioned on the

cheque and the endorsement to the effect “Account Frozen” will

presuppose that an account existed. This is a matter which is to be

taken into consideration by the trial court in detail, and not

merely on the evidence of DW2 and 3. The parties will have to go

through a full-fledged trial. In any event, it was not a matter the

proceedings could have been quashed.

We, accordingly, feel it was premature to quash the

complaint filed by the appellant herein, by the High Court. The

impugned order passed by the High Court is, accordingly, set aside.

We direct the trial court to restore and take up the

matter in Case No.3091/2013 and conclude the same in accordance

with law expeditiously and preferably within a period of six months

from the date of receipt/production of a copy of this order.

The respondent is at liberty to raise all the pleas

before the trial court.

The appeal stands disposed of accordingly.

.........................CJI.

(N.V. RAMANA)

..............……..........J.

(A.S. BOPANNA)

..............…..........J.

(HIMA KOHLI)

NEW DELHI;

FEBRUARY 18, 2022.

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