THE HONOURABLE SRI JUSTICE K.SURENDER CRIMINAL PETITION No.422 OF 2021

O R D E R:

This Criminal Petition is filed by the petitioner, to quash the proceedings in C.C.No.49 of 2020 on the file of the learned XV Special Magistrate, Hyderabad.

2. Heard learned counsel for the petitioner and Sri M.Vivekananda Reddy, learned Assistant Public Prosecutor for the respondent – State. Perused the record.

3. The petitioner/accused No.1 is questioning his prosecution under Section 138 of Negotiable Instruments Act (for short, ‘N.I.Act’).

4. The case of the respondent No.2/complainant is that the petitioner took loan from him and thereafter towards repayment of the said loan, the petitioner’s brother/accused No.2 issued a cheque. The said cheque when presented in bank, it was returned with an endorsement “unpaid”. The respondent No.2 made the petitioner and the accused No.2, who issued cheque, as accused persons.

5. Learned counsel appearing for the respondent No.2 is present and does not dispute the fact that the accused No.2 issued the cheque in his personal capacity.

6. Under Section 138 of the N.I. Act, the drawer of the cheque would be made liable.

7. There is no question of vicarious liability in the present case. Though the counsel submits that, the loan was taken by the petitioner and the documents were issued by the petitioner; and therefore, he has to be prosecuted along with the accused No.2, the said argument is incorrect. Under Section 138 of N.I. Act, the drawer of the cheque is made liable. It is for the respondent No.2 to either file a Civil Suit or any other proceedings to proceed against the petitioner and but the proceedings under Section 138 of N.I. Act cannot be maintained since the cheque was issued by the accused No.2.

8. Accordingly, the Criminal Petition is allowed quashing the proceedings in C.C.No.49 of 2020 on the file of the learned XV Special Magistrate, Hyderabad against the petitioner. Miscellaneous applications pending, if any, shall stand closed.

_________________ K.SURENDER, J Date: 01.05.2025 VSU THE HONOURABLE SRI JUSTICE K.SURENDER CRIMINAL PETITION No.422 OF 2021 Date:01.05.2025 VSU