MAINUDDIN ABDUL SATTAR SHAIKH versus VIJAY D. SALVI

MAINUDDIN ABDUL SATTAR SHAIKH versus VIJAY D. SALVI

The respondent, as the drawer of the cheque on his personal account, is liable under Section 138 of the Negotiable Instruments Act, 1881 irrespective of whether the company was made a party to the complaint, since the liability is attracted to the individual drawer.

Parties
Appellant: Mainuddin Abdul Sattar Shaikh; Respondent: Vijay D. Salvi
Jurisdiction
India
Judgment Date
06 July 2015
Procedural Posture
Criminal Appeal / Supreme Court Judgment on Appeal Against Acquittal
Outcome
Appeal allowed. Acquittal set aside and respondent convicted under Section 138 of NI Act.
Legal Topics
Dishonour of Cheque, Negotiable Instruments Act, 1881 Section 138, Personal Liability of Drawer, Company Liability for Offence
Criminal Law Banking Law Dishonour of Cheque Negotiable Instruments Act, 1881 Section 138 Personal Liability of Drawer Company Liability for Offence

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Parties

Mainuddin Abdul Sattar Shaikh

Appellant

Vijay D. Salvi

Respondent

Procedural Posture

Criminal Appeal / Supreme Court Judgment on Appeal Against Acquittal

Legal Issues

  1. 1 Whether liability under Section 138 of the Negotiable Instruments Act, 1881 can be imposed on the drawer in his personal capacity when the company is not made a party to the complaint

Ratio Decidendi

The respondent, as the drawer of the cheque on his personal account, is liable under Section 138 of the Negotiable Instruments Act, 1881 irrespective of whether the company was made a party to the complaint, since the liability is attracted to the individual drawer.

Court Disposition

Appeal allowed. Acquittal set aside and respondent convicted under Section 138 of NI Act.

Orders

  • Respondent sentenced to five months simple imprisonment for offence under Section 138 NI Act.
  • Respondent to pay compensation of Rs.1,48,400 with simple interest at 9% per annum to the appellant.