SC :: Cheque signature mismatch may lead to qualifcation for prosecution under Section 138 N. I. Act.

*SC :: Cheque signature mismatch may lead to qualifcation for prosecution under Section 138 N. I. Act.*
In a case where the cheque is returned unpaid by the bank on the ground that the signature of the drawer on the cheque differs from his specimen signature on record of the bank, a case of dishonour of cheque punishable under Section 138 may be made out if other ingredients of the offence are satisfied. The Supreme Court has ruled that in case of cheque bounce, a mismatch of signatures will be treated on par with insufficiency of funds, "payment stopped" and "closure of account", which are offences under Section 138 of the Negotiable Instruments Act, 1881. But It's not constitute an offence by itself. Such a dishonour in order to qualify for prosecution under Section 138 shall have to be preceded by a statutory notice where the drawer is called upon and has the opportunity to arrange the payment of the amount covered by the cheque. It is only when the drawer despite receipt of such a notice and despite the opportunity to make the payment within the time stipulated under the statute does not pay the amount that the dishonour would be considered a dishonour constituting an offence, hence punishable. *Laxmi Dyechem v. State of Gujarat, (2012) 13 SCC 375*