Wife Cannot Be Prosecuted Under Section 138 Of Negotiable Instruments Act For Cheques Issued By Her Husband: Karnataka HC

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Synopsis

The High Court while quashing the proceedings against the wife under Section 138 of the Negotiable Instrument Act noted that the three accused did not constitute a firm or company under the Act, therefore, the wife could not be persecuted for the cheques issued by her husband.

A Single Judge Bench comprising Justice M.I Arun of the Karnataka High Court has held that a wife cannot be made accused of dishonor of the cheque issued by her husband and he alone can be prosecuted for the same.

The petitioner (wife) had approached the High Court to quash the proceedings pending before an Additional Chief Metropolitan Magistrate. A case was registered against the petitioner, her mother-in-law, and her husband under Section 138 of the Negotiable Instruments Act for a dishonored cheque issued against the respondent in the discharge of the legally enforceable debt.

The petitioner argued before the High Court that she did not sign the cheque and the cheque was only signed by her husband for which she could not be persecuted under the Negotiable Instruments Act.

The court in its order noted that the respondent was being represented by an advocate. However, the advocate for the respondent remained absent.

Therefore, the court after hearing the petitioner, in its order, noted that neither the wife was a signatory to a cheque nor she had a joint account with her husband. Further, the complainant stated that the husband had issued the cheque, court pointed out. 

Accordingly, while quashing the proceedings against the wife, court noted that:

“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. Hence, under the circumstances, petitioner cannot be made accused for dishonor of the cheque issued by her husband and he alone can be prosecuted for the same.”

Case Title: Smt Veenashri vs Shri Shankar