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Indian Laws - Highlights / Catch Notes

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Dishonor of cheque - vicarious liability u/s 141 of the ...


Cheque dishonor case dismissed due to lack of petitioner's signature, despite joint account. Vicarious liability not established.

Case Laws     Indian Laws

July 25, 2024

Dishonor of cheque - vicarious liability u/s 141 of the Negotiable Instruments Act - Court held that the issue of whether statutory notice was issued is a matter of trial. However, the complaint case must fail due to a fundamental issue. The subject cheque, copy of which was on record, was signed only by petitioner's late husband. Although the cheque was issued from a joint account, it is a fact that the cheque is not signed by the petitioner. The criminal complaint filed against the petitioner is an abuse of process of law and is liable to be quashed and set aside. Consequently, the petition is allowed, and the criminal complaint against the petitioner is quashed.

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