Wife Cannot be Made Accused in Cheque Bounce Case For Cheque Issued by Husband: Karnataka HC
The Karnataka High Court ruled that proceedings under Section 138 of the Negotiable Instruments Act could not be initiated against the wife for “dishonour of her husband’s cheque.”
While allowing petitioner Veenashri’s petition and quashing the proceedings against her, a single judge bench of Justice M I Arun stated, “Petitioner cannot be made an accused for dishonour of the cheque issued by her husband, and he alone can be prosecuted for the same.”
The accused claimed that she, her husband, and her mother-in-law owed a certain sum of money to the respondent-complainant, and that in order to discharge the legally enforceable debt, a cheque was issued in favour of the respondent, which was dishonoured.
The respondent filed a private complaint under Section 138 of the Negotiable Instruments Act of 1881 against three accused persons, including the petitioner.
The petitioner claimed that she never signed the cheque that was returned unpaid. She argued that because the documents were only signed by her husband, she could not be prosecuted under Section 138 of the N.I. Act
The bench noted that the accused is not a signatory to the cheque and that it is not a joint account either.
“The complainant also specifically states in the complaint that accused No.1, the petitioner’s husband, issued the cheque. The three defendants in C.C.No.1220/2018 do not constitute a company, firm, or association of individuals as defined by Section 141 of the N.I. Act “It stated.
As a result, the petition was granted.
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