2024 (2) TMI 2 - HC - Indian Laws

Dishonour of Cheque - Section 138 of NI Act - HELD THAT - Since, the offence under Section 138 of the Act can only be initiated against the person who has issued the cheque, obviously, the proceedings against the petitioner who had not issued the cheque would be unsustainable especially when the only allegation alleged against the petitioner and her husband is of commission of an offence as contemplated under Section 138 of the Act. Consequently, the proceedings as against the petitioner shall stand quashed.

Summary

Issues involved: Jurisdiction of criminal proceedings u/s 138 of Negotiable Instruments Act against petitioner and her husband.

Summary:

Jurisdiction Issue:
The respondent/complainant initiated criminal proceedings u/s 138 of the Negotiable Instruments Act against the petitioner and her husband for issuing a postdated cheque. However, the complaint was lodged against both accused, even though the cheque was issued only by accused No. 1. The court noted that the offence u/s 138 of the Act can only be initiated against the person who has issued the cheque. As the petitioner had not issued the cheque, the proceedings against her were deemed unsustainable. The court quashed the proceedings against the petitioner, as the only allegation was related to the offence u/s 138 of the Act, which was not applicable to her.

This summary provides a detailed breakdown of the judgment, highlighting the key legal issues and the court's decision regarding the jurisdiction of criminal proceedings u/s 138 of the Negotiable Instruments Act against the petitioner and her husband.