ALKA KHANDU AVHAD versus AMAR SYAMPRASAD MISHRA & ANR.

ALKA KHANDU AVHAD versus AMAR SYAMPRASAD MISHRA & ANR.

The complaint against the appellant was quashed because she was neither the signatory to the dishonoured cheque nor was the cheque drawn on her account (the account was not joint), and Section 141 cannot be invoked against two private individuals; therefore she could not be prosecuted under Section 138 read with Section 141 of the NI Act.

Parties
Appellant (original Accused No.2): Alka Khandu Avhad; Respondent (original Complainant): Amar Syamprasad Mishra
Jurisdiction
India
Judgment Date
08 March 2021
Procedural Posture
Criminal Appeal / Appeal to Supreme Court Against High Court Order Refusing to Quash Criminal Complaint Under Section 138 Read With Section 141 of the Negotiable Instruments Act, 1881
Outcome
Appeal allowed
Legal Topics
Section 138, Section 141, Dishonoured Cheque, Quashment of Complaint
Negotiable Instruments Act, 1881 Criminal Law Section 138 Section 141 Dishonoured Cheque Quashment of Complaint

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Parties

Alka Khandu Avhad

Appellant (original Accused No.2)

Amar Syamprasad Mishra

Respondent (original Complainant)

Procedural Posture

Criminal Appeal / Appeal to Supreme Court Against High Court Order Refusing to Quash Criminal Complaint Under Section 138 Read With Section 141 of the Negotiable Instruments Act, 1881

Legal Issues

  1. 1 Whether an accused who is not a signatory to a cheque and in whose account the cheque was not drawn can be prosecuted under Section 138 NI Act
  2. 2 Whether Section 141 NI Act (offence by companies/associations) is applicable to two private individuals alleged to be jointly liable

Ratio Decidendi

The complaint against the appellant was quashed because she was neither the signatory to the dishonoured cheque nor was the cheque drawn on her account (the account was not joint), and Section 141 cannot be invoked against two private individuals; therefore she could not be prosecuted under Section 138 read with Section 141 of the NI Act.

Court Disposition

Appeal allowed

Orders

  • Impugned High Court order dated 21.08.2019 refusing to quash the criminal complaint is quashed and set aside
  • Criminal complaint C.C. No. 2802/SS/2016 filed by respondent No.1 in the Court of the learned Metropolitan Magistrate is quashed and set aside