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Supreme Court of India 2021-03-08 allowed

Alka Khandu Avhad vs Amar Syamprasad Mishra & Anr

Bench: 2 — Dhananjaya Y. Chandrachud, M. R. Shah

In Brief

The appellant, a wife, was charged under Section 138 read with Section 141 of the Negotiable Instruments Act for dishonour of a cheque issued by her husband. The cheque was drawn on the husband's sole account; the appellant was neither a signatory nor an account holder. The Court held that Section 138 applies only to the actual drawer of the cheque on their own account. Joint liability for the underlying professional fees does not extend criminal liability to non-signatories. Section 141 applies only to corporate entities, firms, or formal associations—not to two private individuals. The complaint was quashed and the appeal allowed.

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Negotiable Instruments Act Criminal Law Cheque Dishonour Section 138 NI Act Section 141 NI Act Criminal Procedure

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