Negotiable Instruments Act, 1881 (26 of 1881), Section 138, 141 –A person might have been jointly liable to pay the debt, but if such a person who might have been liable to pay the debt jointly, cannot be prosecuted unless the bank account is jointly maintained and that he was a signatory to the cheque - Dishonoured cheque was signed by original accused No. 1 and it was drawn on the bank account of original accused No. 1 - The accused No. 2 is neither the signatory to the cheque nor the dishonoured cheque was drawn from her bank account - Account in question was not a joint account – Section 138 does not speak about the joint liability - Even in case of a joint liability, in case of individual persons, a person other than a person who has drawn the cheque on an account maintained by him, cannot be prosecuted for the offence under Section 138.
(2021-2)202 PLR 001 : 2021 SCeJ 308 ALKA KHANDU AVHAD v. AMAR SYAMPRASAD MISHRA
Negotiable Instruments Act, 1881 (26 of 1881), Section 138, 141 – Joint Liability - Section 138 does not speak about the joint liability - Even in case of a joint liability, in case of individual persons, a person other than a person who has drawn the cheque on an account maintained by him, cannot be prosecuted for the offence under Section 138.
(2021-2)202 PLR 001 : 2021 SCeJ 308 ALKA KHANDU AVHAD v. AMAR SYAMPRASAD MISHRA
Negotiable Instruments Act, 1881 (26 of 1881), Section 138, 141 – “Other association of individuals’ - Two private individuals cannot be said to be "other association of individuals" - The liability is the individual liability (may be a joint liabilities), but cannot be said to be the offence committed by a company or by it corporate or firm or other associations of individuals - Appellant herein is neither a Director nor a partner in any firm who has issued the cheque - Therefore, cannot be convicted with the aid of Section 141.
(2021-2)202 PLR 001 : 2021 SCeJ 308 ALKA KHANDU AVHAD v. AMAR SYAMPRASAD MISHRA