NIA S. 138 – Liability of Joint Account Holders – There is no provision for taking cognizance against a person other than the “drawer” of the cheque. [(2023-4)212 PLR 177]

Liability of Joint Account Holders (Section 138 ):

• Petitioner and her husband were joint account holders, but the petitioner was not the signatory of the dishonored cheque, which was signed solely by her husband.
• Merely being the spouse of the co-accused or a joint account holder does not automatically implicate the petitioner in the offense under Section 138.

·  Cognizance Against Non-Drawers (Section 138):

• There is no provision for taking cognizance against a person other than the “drawer” of the cheque. This exclusion applies except in cases involving companies, as specified under Section 141 of the Act.

·  Interpretation of “Such Person” in Section 138 :

• Strict construction of penal provisions, term “such person” in Section 138. Liability for the dishonor of a cheque is confined strictly to the drawer of the cheque.
• The phrase “such person shall be deemed to have committed the offence” is explicitly linked to the individual who has drawn the cheque. If the cheque is returned unpaid for reasons stipulated under Section 138, only the drawer is liable for prosecution under this section.

(2023-4)212 PLR 177

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