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IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.JAYACHANDRAN
Shirley Salome – Appellant
Versus
S.Durga – Respondent
| Table of Content |
|---|
| 1. liability for loan secured by cheque. (Para 2) |
| 2. argument on vicarious liability under ni act. (Para 3) |
| 3. supreme court's clarification on signatory's liability. (Para 4) |
ORDER :
G. JAYACHANDRAN, J.
This Criminal Original Petition is filed to quash the complaint under Section 138 of Negotiable Instruments Act on the sole ground that the petitioner is not the signatory of the cheque and the cheque drawn by the second accused from the account maintained by the second accused.
2. The complaint against the petitioner and her husband is that for their business, they have borrowed a sum of Rs.22,00,000/- and the security for the debt, they have jointly deposited the title deed and executed a memorandum to that effect. That apart, for discharging the debt, the subject cheque dated 20.01.2020 for a sum of Rs.16,64,000/- was issued by the second accused who is the husband of the petitioner herein. On the premise that the cheque was issued to discharge the liability of the petitioner and her husband jointly and severally and the cheque being bounced for insufficient of funds. Both the husband and wife are liable for prosecution under Section 138 of Negotiable Instruments Act.
3
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.
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.
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....
A joint account holder cannot be prosecuted under Section 138 of the Negotiable Instruments Act unless they are a signatory to the cheque.
Only the drawer of the cheque can be prosecuted under Section 138 of the Negotiable Instruments Act, and joint account holders cannot be held liable unless the cheque has been signed by each and ever....
Only the drawer of the cheque can be made an accused under Section 138 of the Negotiable Instruments Act, with the exception of directors/partners being vicariously liable for the debt/liability of t....
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