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IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT NAGPUR
M.W.CHANDWANI
Monica, W/o Nirav Shah – Appellant
Versus
Dharampeth Mahila Multi State Co-Operative Society Ltd, through its court agent Shri Rajesh Nilkantrao Sathwane – Respondent
JUDGMENT :
M.W. CHANDWANI, J.
Heard.
2. Rule. Rule made returnable forthwith. Heard finally by consent of the learned counsels appearing for the parties.
3. The petition seeks quashing and setting aside of the order dated 13.04.2017 passed below Exhibit-1 by the learned Judicial Magistrate First Class, Nagpur, in S.C.C. No.16088 of 2016, thereby issuing process against the petitioner for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881.
4. Shorning of unnecessary details, the case is as follows :
The respondent – State Co-operative Society Limited, Nagpur, filed a criminal complaint bearing S.C.C. No.16088 of 2016 against the petitioner as well as her husband for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short, “the N.I. Act”). The Co-operative Society had advanced a loan to the tune of Rs.2,75,00,000/- to the husband of the petitioner. The petitioner as well as one Mr Vishal Tilakraj Malik stood guarantors to the said loan transaction. It is further submitted that the husband of the petitioner issued a cheque bearing No.003542 dated 10.08.2016 amounting to Rs.10,00,000/- drawn on Kotak Mahindra Bank, Santacr
A joint account holder cannot be prosecuted under Section 138 of the N.I. Act unless they are also a signatory on the cheque; prosecution of a non-drawer constitutes an abuse of process.
Only the drawer of a cheque can be prosecuted under Section 138 of the Negotiable Instruments Act; joint account holders are not liable unless they signed the cheque.
Only the drawer of a cheque can be prosecuted under Section 138 of the Negotiable Instruments Act, and in cases of joint accounts, all signatories must be involved for liability to attach.
A non-signatory to a cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act for cheque bounce, as liability is limited to the cheque's drawer.
Words used in Section 138 of N.I.Act that “such person shall be deemed to have committed an offence” refers to a person who has drawn the cheque, but not any other person, except the contingencies me....
Liability under Section 138 of the N.I. Act requires the accused to be a signatory to the dishonored cheque, and the provisions of Section 141 regarding the liability of a company, firm, or associati....
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