UNDER SECTION 138 OF NEGOTIABLE INSTRUMENTS ACT, DRAWER OF THE CHEQUE WOULD BE LIABLE, IF THE CHEQUE IS RETURNED UNPAID: TELANGANA HIGH COURT
The High Court of Telangana passed a judgment on 16 March, 2023 stating that Under Section 138 of Negotiable Instruments Act, drawer of the cheque would be liable, if the cheque is returned unpaid. It was stated in the case of B.Archana vs The State Of Telengana And Another (Crl.Petition No.2637_2023) which was passed by the single judge bench comprising of K.Surender
FACTS OF THE CASE:
The Criminal Petition is filed under Section 482 of the Code of Criminal Procedure, 1973 (for short ‘Cr.P.C.’) by the petitioner- Accused No.2 to quash the proceedings against her in S.T.C N.I.No.5221 of 2022 on the file of X Metropolitan Magistrate, Manoranjan Court Complex, Hyderabad for the offences under Sections 138 and 142 of Negotiable Instruments Act.
JUDGEMENT OF THE CASE
The cheque is a personal cheque issued by accused. Though this petitioner is a partner in the partnership firm and amounts were taken from the finance firm, it would not be proper for the complainant to prosecute this petitioner, who is not a signatory to the said cheque. Under Section 138 of Negotiable Instruments Act, drawer of the cheque would be liable, if the cheque is returned unpaid. In the present transaction even though the petitioner is a partner in the partnership firm being run by accused No.1 and petitioner herein, when the cheque is issued in the personal capacity of the accused No.1, this petitioner is not vicariously liable under section 138 of Negotiable Instruments Act.
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JUDGEMENT REVIEWED BY ROSHNI SABU, KERALA LAW ACADEMY LAW COLLEGE.