Advertisement
Advertisement
Skip to content
Follow Us on
Advertisement
TOP STORIES
Corporate Law

Offence U/s. 138 of NI Act can not be initiated against wife for cheque issued by Husband: HC

Case Law Details

TaxGuru Citation
2024 taxguru.in 502
Case Name
Shashikala Jayaram Vs Appayappa (Karnataka High Court)
Date of Judgement/Order
Only available for paid members
Advertisement

Shashikala Jayaram Vs Appayappa (Karnataka High Court)

The case of Shashikala Jayaram vs. Appayappa in the Karnataka High Court revolves around criminal proceedings initiated under Section 138 of the Negotiable Instruments Act, 1881. Accused No.1, the husband, issued a postdated cheque, leading to legal ramifications for both accused parties.

Detailed Analysis: The complainant alleges that, in early June 2023, he demanded repayment from the accused. In response, the accused promised to pay a specific amount, issuing a postdated cheque of Rs. 3,00,000 on July 26, 2023. However, the petitioner, accused No.2, is not the issuer of the cheque. The critical question arises: Can Section 138 proceedings be valid against a party who hasn’t issued the cheque?

Analyzing the legal stance, it’s evident that Section 138 of the Act applies exclusively to the person issuing the cheque. In this scenario, the petitioner’s inclusion in the proceedings becomes legally unsustainable. The complaint against both accused parties, despite the cheque originating from only one, raises concerns of procedural irregularities.

The crux lies in the fact that accused No.1, the husband, is the sole issuer of the cheque. Consequently, the petitioner, accused No.2, should be exempt from Section 138 proceedings. The proceedings against the petitioner lack a legal foundation, focusing solely on her association with the accused.

Conclusion: In light of the legal analysis, the proceedings against the petitioner, Shashikala Jayaram, should be quashed. Section 138 offenses can only be initiated against the person who issued the cheque, and in this case, it’s unequivocally accused No.1. The court should ensure adherence to legal principles, dismissing unsustainable charges against the petitioner. This case underscores the importance of precise legal proceedings, preventing undue harassment of parties not directly involved in the alleged offense.

Adv Rohit N Latur argued the matter on behalf of the accused wife.

Paid content

Become a Basic or Premium Member, or log in if you are already a Basic or Premium member.

Advertisement

Join TaxGuru's Network for the latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.