Farhan Khan Vs State of U.P. Thru. Addl. Chief Secy… — Cheque Dishonour | Allahabad HC (2025)

Farhan Khan Vs State of U.P. Thru. Addl. Chief Secy… — Cheque Dishonour | Allahabad HC (2025)

What the court decided

AI extract

Outcome

Application disposed of: proceedings not quashed; liberty to the applicant to appear before the Magistrate within three weeks and move for compounding per Damodar S. Prabhu (supra); Magistrate to dispose of the compounding application within three months after hearing all parties; failing which the trial to proceed with all defences open; no coercive steps against the applicant for three months.

Issue for consideration

Whether the order dated 20.1.2025 in Case No.42 of 2025 under Section 138 N.I. Act (impugned complaint and summoning order) suffers from manifest illegality, jurisdictional error or abuse of process warranting quashing under Section 482 Cr.P.C./Section 528 BNSS, and whether the proceedings should be stayed.

Court's answer

Perusal of the impugned complaint and the summoning order discloses no manifest illegality, jurisdictional error or abuse of the process of Court calling for interference under Section 482 Cr.P.C.; being a Section 138 Negotiable Instruments Act cheque-dishonour case, this Court declines to quash the proceedings.

Ratio / Principle

It is open to the applicant to appear before the Magistrate and pray for compounding the case in accordance with the principles laid down by the Supreme Court in Damodar S. Prabhu vs. Sayed Babalal H.; if the applicant appears through counsel within three weeks and moves a compounding application, the Magistrate shall dispose of it in accordance with law within three months, bearing in mind the relevant directions in Damodar S. Prabhu (supra), after hearing all parties.

Key takeaways

If the compounding orders do not bring the proceedings to an end in accordance with law, the trial shall proceed and be brought to its logical conclusion, with all defences open to the applicant under the law.ratio¶17
For a period of three months, no coercive steps shall be adopted against the applicant in respect of the aforesaid case.ratio¶18

Detailed headnote1 paragraphs

Allahabad High Court (Lucknow Bench), Brij Raj Singh, J. — Application U/S 528 BNSS No. 1512 of 2025 (referred to in the body as a 482 Cr.P.C. application) by Farhan Khan seeking quashing of the order dated 20.1.2025 in Case No.42 of 2025 (Shriram Transport Finance Co. Ltd. vs. Farhan Khan) under Section 138 N.I. Act, Police Station Kotwali Sadar, District Lakhimpur Kheri, pending before ACJM Court No.2, Lakhimpur Kheri, with a further prayer to stay the proceedings. Held: perusal of the impugned complaint and the summoning order disclosed no manifest illegality, jurisdictional error or abuse of the process of Court; the Court declined to quash the proceedings. The applicant was left free to appear before the Magistrate within three weeks and seek compounding in accordance with the principles laid down in Damodar S. Prabhu vs. Sayed Babalal H., 2010 (5) SCC 663; the Magistrate to dispose of such application within three months after hearing all parties; if compounding does not end the proceedings, the trial to proceed with all defences open. No coercive steps against the applicant for three months. Application disposed of. Decided October 30, 2025.

HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW

APPLICATION U/S 528 BNSS No. - 1512 of 2025

Farhan Khan

.....Applicant(s)

Versus

State Of U.P. Thru. Addl. Chief Secy. Deptt. Of Home And Another

.....Opposite Party(s)

Counsel for Applicant(s) Counsel for Opposite Party(s)	: Ajeet Kumar Mishra : G.A.

Court No. - 16

HON'BLE BRIJ RAJ SINGH, J.

Heard learned counsel for the applicant, learned A.G.A. for the State and perused the record.

The present 482 Cr.P.C. application has been filed with a prayer to quash the order dated 20.1.2025 in Case No.42 of 2025, (Shriram Transport Finance Co. Ltd., vs. Farhan Khan) under Section 138 N.I. Act, Police Station Kotwali Sadar, District Lakhimpur Kheri, pending before ACJM,Court No.2, Lakhimpur Kheri with a further prayer to stay the proceedings in respect of the aforesaid case.

A perusal of the impugned complaint and the summoning order does not disclose any such manifest illegality or jurisdictional error or an abuse of process of Court so as to call for interference by this Court in exercise of its jurisdiction under Section 482 Cr.P.C. It is a case under Section 138 Negotiable Instruments Act where an offence of dishonour of a cheque is involved. This Court, therefore, declines to quash the proceedings.

It will, however, open to the applicant to appear before the Magistrate and pray for compounding the case in accordance with principles laid down by the Supreme Court in Damodar S. Prabhu vs. Sayed Babalal H., 2010 (5) SCC 663. In case, the applicant appears before the Magistrate within three weeks from the date through counsel and moves an application seeking to compound the offences, the Magistrate shall dispose of the application in accordance with law within three months bearing in mind the relevant directions in Damodar S. Prabhu (supra) after providing opportunity of hearing to all parties concerned. If the

NA528 No. 1512 of 2025

2

orders made do not work to bring proceedings to an end in accordance with law, the trial shall proceed and brought to its logical conclusion, where the applicant will have all defence open to him under the law.

For a period of three months, no coercive steps shall be adopted against the applicant in respect of the aforesaid case.

The application is disposed of in terms of the aforesaid orders.

(Brij Raj Singh,J.)

October 30, 2025

Pks

Digitally signed by :- POOJA SETH High Court of Judicature at Allahabad, Lucknow Bench