Court quashes criminal case for cheque dishonour due to civil dispute, calling it malicious prosecution.

The High Court quashed the criminal proceedings u/s 138 of the Negotiable Instruments Act arising from a complaint case. The petitioners were accused of criminal conspiracy to encash cheques by forging bills despite no material being supplied. The Court held that the cheque issued as security in a financial transaction matures for presentation if not repaid as agreed, leading to consequences u/s 138. The Court found the complaint to be malicious prosecution to shortcut civil proceedings, quashing the entire criminal case. The decision was influenced by a Supreme Court judgment emphasizing the legal consequences of dishonored cheques used as security. .....

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