Summary
The Supreme Court quashed the cheque-dishonour prosecution against a wife who had neither signed the cheque nor maintained the account on which her husband drew it. Joint liability for an advocate’s fees did not itself create criminal liability under Section 138. Section 141 concerning company offences could not be invoked merely because two private individuals allegedly owed the debt jointly.
Issues
- Whether an individual jointly liable for a debt can be prosecuted for another individual’s dishonoured cheque.
- Whether Section 141 extended liability to the non-signatory wife.
Provisions considered
- Sections 138 and 141, Negotiable Instruments Act, 1881Joint personal indebtedness did not substitute for drawing the cheque or attract the company-offence provision. (¶ 6-8.1)
Held
- The wife was neither a signatory nor an account holder, and the account was not joint. Alleged joint liability for the professional bill therefore did not expose her to prosecution under Section 138. (¶ 6-7)
- Two private individuals owing a joint debt did not thereby constitute an association attracting Section 141. The wife was not a director or partner of an entity issuing the cheque. Continuing the complaint against her was abuse of process. (¶ 8-8.1)
Result
Appeal allowed; High Court refusal to quash set aside and complaint quashed insofar as the appellant was concerned.