Tarushi Agarwal vs State of U.P. Thru. Addl. Chief Secy… — Cheque Dishonour | Allahabad HC (2026)

Tarushi Agarwal vs State of U.P. Thru. Addl. Chief Secy… — Cheque Dishonour | Allahabad HC (2026)

What the court decided

AI extract

Outcome

Application disposed of; quashing declined. Applicant at liberty to appear before the Magistrate within three weeks through counsel and move an application to compound the offence per the principles in Damodar S. Prabhu vs. Sayed Babalal H., 2010 (5) SCC 663; the Magistrate to dispose of such application within three months in accordance with law after hearing all parties; failing termination of proceedings, trial to proceed to its logical conclusion with all defences open to the applicant; no coercive steps against the applicant for three months.

Issue for consideration

Whether the entire criminal proceedings of Complaint Case No. 77992 of 2021 (CNR No. UPLK040956622021) under Section 138 of the Negotiable Instruments Act, 1881, pending before the Court of Additional Court (N.I. Act)- No. 12/Special Court (N.I. Act), Lucknow, ought to be quashed in exercise of this Court's jurisdiction under Section 482 Cr.P.C.

Court's answer

The impugned complaint and the summoning order do not disclose any manifest illegality, jurisdictional error or 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.

Ratio / Principle

This being a case under Section 138 of the Negotiable Instruments Act involving dishonour of a cheque, the Court declines to quash the criminal proceedings.

Key takeaways

It is open to the applicant to appear before the Magistrate and pray for compounding of the case in accordance with the principles laid down by the Supreme Court in Damodar S. Prabhu vs. Sayed Babalal H., 2010 (5) SCC 663; if the applicant appears within three weeks through counsel 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) and after hearing all parties; if the orders do not bring the proceedings to an end, the trial shall proceed to its logical conclusion with all defences open to the applicant under law.ratio¶18
For a period of three months, no coercive steps shall be adopted against the applicant in respect of the aforesaid case.ratio¶19

Detailed headnote1 paragraphs

Allahabad High Court (Lucknow Bench), Brij Raj Singh, J. - Application u/s 482 Cr.P.C. (now S. 528, Bharatiya Nagarik Suraksha Sanhita, 2023) by Tarushi Agarwal seeking quashing of the entire criminal proceedings of Complaint Case No. 77992 of 2021 (CNR No. UPLK040956622021) under S. 138, Negotiable Instruments Act, 1881 (Pramod Kumar Tekriwal v. Tarushi Agarwal), P.S. Gazipur, District Lucknow, pending before the Court of Additional Court (N.I. Act)- No. 12/Special Court (N.I. Act), Lucknow. Counsel did not press the application on merits; the applicant undertook to cooperate and appear before the trial court within three weeks, with a chance of mediation indicated. Perusal of the impugned complaint and the summoning order disclosed no manifest illegality, jurisdictional error or abuse of process of Court; the Court declined to quash the proceedings. The applicant was given liberty to appear before the Magistrate and seek compounding in accordance with the principles in Damodar S. Prabhu v. Sayed Babalal H., 2010 (5) SCC 663; upon appearance within three weeks and filing of a compounding application, the Magistrate to dispose of it within three months per the relevant directions after hearing all parties; otherwise the trial to proceed to its logical conclusion with all defences open. No coercive steps against the applicant for three months. Application disposed of. (Decided January 28, 2026)

HIGH COURT OF JUDICATURE AT ALLAHABAD LUCKNOW

APPLICATION U/S 482 No. - 570 of 2026

Tarushi Agarwal

.....Applicant(s)

Versus

State Of U.P. Thru. Addl. Chief Secy. Home Deptt. Civil Sectt. Lko. And Another .....Opposite Party(s)

Counsel for Applicant(s) : Prabhat Kumar Mishra, Shobhit Harsh Counsel for Opposite Party(s) : G.A.

Court No. - 16

HON'BLE BRIJ RAJ SINGH, J.

Heard learned counsel for the applicant and learned A.G.A. for the State.

This application has been filed with the following main relief:

"to allow the present Application under Section 482 Cr.P.C. (now Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023) and quash the entire criminal proceedings of Complaint Case bearing Criminal Case No. 77992 of 2021 (CNR No. UPLK040956622021), under Section 138 of the Negotiable Instruments Act, 1881 (Pramod Kumar Tekriwal versus Tarushi Agarwal), Police Station-Gazipur, District-Lucknow, pending before the Court of Additional Court (N.I. Act)- No. 12/Special Court (N.I. Act), Lucknow, District- Lucknow, in the interest of justice."

At the very outset, learned counsel for the applicant does not want to press this application on merits. He has further submitted that the applicant is ready to cooperate in the proceedings and will appear before the trial court within three weeks from today. It is submitted that there is chance of mediation between the parties.

A perusal of the impugned complaint and the summoning order does not disclose any such manifest illegality or jurisdictional error or an abuse

A482 No. 570 of 2026

2

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 of Negotiable Instruments Act where an offence of dishonour of a cheque is involved. This Court, therefore, declines to quash the proceedings.

It will, however, be 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., 2010 (5) SCC 663 . In case, the applicant appears before the Magistrate within three weeks from today 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 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 her 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.)

January 28, 2026

Mohit Singh/-

Digitally signed by :- MOHIT SINGH High Court of Judicature at Allahabad, Lucknow Bench