The Karnataka High Court recently comprising of a bench of Justice M I Arun remarked that proceedings under Section 138 of the Negotiable Instruments Act cannot be initiated against the wife for "dishonor of the cheque issued by her husband". (VEENASHRI v. SHANKAR)
Facts of the case
On the ground that the petitioner - accused No.2 along with her husband and mother-in-law owed certain sum of money to the respondent - complainant and in discharge of the legally enforceable debt, a cheque was issued in favour of the respondent and the same was dishonored, a private complaint was filed by the respondent under Section 138 of Negotiable Instruments Act, 1881('N.I.Act'), which was registered on the file of 22nd Additional Chief Metropolitan Magistrate, Bengaluru.
Aggrieved by the same, the petitioner, who is accused No.2 has preferred the present petition with a prayer to quash the proceedings in against her.
The case of the petitioner is that she never signed the cheque which have been dishonored and the same were only signed by her husband (accused No.1) and she cannot be prosecuted under the provisions of Section 138 of the N.I. Act.
Courts Observation and Judgment
The court having perused the contention of the learned counsel for the petitioner and the complaint and the copies of the documents enclosed along with it observed, "It is seen from the complaint, the allegation is that all the three accused persons including the petitioner herein had borrowed hand loan from the respondent herein and in discharge of the same, accused No.1, who is the husband of the petitioner herein issued four cheques, which have been dishonored and accordingly, proceedings under Section 138 of the N.I. Act have been initiated against the petitioner and two other accused.
However, it is seen that accused is not a signatory to the cheque and it is the specifically averred that it is not a joint account also. In the complaint also, it is specifically stated by the complainant that accused No.1, who is the husband of the petitioner has issued the cheque."
The bench allowing the petition remarked, "The three accused in C.C.No.1220/2018 do not constitute a Company or a firm or Association of individuals as contemplated under Section 141 of N.I. Act. Hence, under the circumstances, petitioner cannot be made accused for dishonor of the cheque issued by her husband and he alone can be prosecuted for the same."
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