Wife Cannot Be Made Accused in NI Act Case For Cheque Issued By Her Husband: Karnataka High Court

The Karnataka High Court has said proceedings under Section 138 of the Negotiable Instruments Act cannot be initiated against the wife for "dishonor of the cheque issued by her husband". A single judge bench of Justice M I Arun while allowing the petition filed by petitioner Veenashri and quashing the proceedings against her, said, "Petitioner cannot be made accused for dishonour of the cheque issued by her husband and he alone can be prosecuted for the same." It was contended by the accused that she along with her husband and mother-in-law owed a certain sum of money to the respondent-complainant and in discharge of the legally enforceable debt, a cheque was issued in favour of the respondent and the same was dishonored. A private complaint was filed by the respondent under Section 138 of Negotiable Instruments Act, 1881 against three accused persons including the petitioner. It was contended by the petitioner that she never signed the cheque which had been dishonoured. Submitting that the same were only signed by her husband, she argued that she cannot be prosecuted under the provisions of Section 138 of the N.I. Act. Findings: The bench noted that the accused is not a signatory to the cheque and it is specifically averred that it is not a joint account also. "In the complaint also, it is specifically stated by the complainant that accused No.1, who is the husband of the petitioner has issued the cheque. The three accused in C.C.No.1220/2018 do not constitute a Company or a firm or Association of individuals as contemplated under Section 141 of N.I. Act," it said. Accordingly it allowed the petition. Case Title: VEENASHRI v. SHANKAR Case No: CRIMINAL PETITION NO.2129 OF 2019 Citation: 2022 LiveLaw (Kar) 439 Date of Order: 19TH DAY OF OCTOBER, 2022 Appearance: P.N. MANMOHAN, ADVOCATE for petitioner. SRINATH G. KULKARNI, ADVOCATE for respondent. Click Here To Read/Download Order

Wife Cannot Be Made Accused in NI Act Case For Cheque Issued By Her Husband: Karnataka High Court

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