Joint account holder liability under cheque dishonour law requires clear averments of issuance or authorisation

Section 138 of the Negotiable Instruments Act fastens criminal liability on the person who draws or issues the dishonoured cheque. A joint account holder cannot be proceeded against merely on that status unless the complaint or cheque contains specific averments, or other material, showing that she drew, issued, or authorised the instrument. In the absence of such prima facie material, the complaint does not disclose an offence against that person and is liable to be quashed under Section 482 CrPC insofar as she is concerned.

---

---

Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 could be maintained against a joint account holder who had not drawn or issued the cheque in question, and whether such complaint was liable to be quashed under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: Section 138 fastens liability on the person who draws a cheque on an account maintained by him and whose cheque is dishonoured. The complaint and the cheque itself did not contain any specific averment or material showing that the petitioner had drawn, issued, or authorised the cheque. Mere status as a joint account holder was held insufficient to bring the petitioner within the penal provision, particularly when the complaint did not prima facie disclose her participation in the issuance of the cheque.

Conclusion: The complaint did not make out a prima facie case against the petitioner under Section 138 and was quashed insofar as she was concerned.

Ratio Decidendi: Liability under Section 138 of the Negotiable Instruments Act, 1881 attaches to the person who draws or issues the dishonoured cheque, and a joint account holder cannot be prosecuted in the absence of specific averments or material showing issuance or authorisation of the cheque.

---