The Punjab and Haryana High Court stated that continuing legal actions under Section 174 A of the IPC after settling a cheque dishonor case is a misuse of the legal process.
The Punjab & Haryana High Court emphasized that if a complaint under Section 138 of the Negotiable Instruments Act is withdrawn due to a friendly settlement between the parties, continuing proceedings under Section 174-A IPC is an abuse of legal process. The Court reviewed a petition under Section 528 BNSS, 2023, aimed at dismissing an FIR under Section 174-A IPC and all related proceedings. Justice N.S. Shekhawat noted that a similar case showed that when an FIR was filed under Section 174-A IPC because of a decision in Section 138 proceedings, a different bench had ruled that if the main petition under Section 138 is withdrawn due to a settlement, then pursuing Section 174-A IPC is an abuse of the law. This point was crucial in allowing the petition and canceling the order that labeled the petitioner as a proclaimed offender, as well as quashing the FIR under Section 174-A IPC.
The petitioner’s lawyer argued that the complainant had filed a case against the petitioner under Section 138 of the Negotiable Instruments Act 1881. He explained that the complainant had an agreement to buy a property from the petitioner, but even after paying, the property was not transferred. After the complainant filed a case under Section 138, the petitioner was labeled a proclaimed offender, leading to an FIR against him. However, they later reached an agreement, and the trial court dismissed the complaint as withdrawn. The lawyer claimed that the petitioner was declared a proclaimed offender just to ensure he appeared in court. Since the matter was settled and the complaint withdrawn, he argued that pursuing the petitioner under Section 174-A IPC would serve no purpose, and the FIR and related proceedings should be canceled by the Court.
The Court agreed with the petitioner’s lawyer and referenced previous cases, stating that continuing the Proclamation Proceedings under Section 174-A IPC after a settlement in a cheque dishonor case is an abuse of legal process. The Court noted that since the main case was withdrawn by the complainant, continuing the proceedings from the order dated 30.11.2019 and FIR No. 0064 dated 24.02.2021 under Section 174-A would also be an abuse of the Court’s process. Therefore, the petition was granted.
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.
