Cheque dishonour liability extends to public charitable trusts and trustees in charge of trust affairs under a purposive reading.

A public charitable trust can be treated as a juristic person and as a "company" for the purposes of Sections 138 and 141 of the Negotiable Instruments Act, 1881, because the term "person" is of inclusive import and Chapter XVII must be read purposively to preserve cheque credibility. On that reasoning, the omission of "trust" from Section 141 was treated as casus omissus, and both a trust with a single trustee and one with multiple trustees were held to fall within its scope. Trustees shown by prima facie averments to be in charge of the trust's day-to-day affairs can therefore be proceeded against for cheque dishonour.

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Issues: Whether a public charitable trust is a juristic person and a "company" for the purposes of Sections 138 and 141 of the Negotiable Instruments Act, 1881, and whether trustees in charge of its affairs can be proceeded against for dishonour of cheques issued by the trust.

Analysis: A trust, though an obligation attached to property under the Indian Trusts Act, 1882, may also function as an organisation with legal personality. The term "person" in the relevant legal context is of inclusive import, and the Court applied the principle of ejusdem generis to hold that a public charitable trust falls within that concept. The Court further held that the object of Chapter XVII of the Negotiable Instruments Act, 1881 is to enhance cheque credibility, and a restrictive reading of Section 141 would defeat that purpose. Reading the definition of "company" in a purposive manner, and treating the omission of "trust" as casus omissus, the Court concluded that a trust with a single trustee as well as a trust with more than one trustee falls within Section 141. On the facts, the complaint and memorandum of understanding contained prima facie averments showing that the trustees were in charge of the day-to-day affairs of the trust.

Conclusion: A public charitable trust is liable to prosecution under Section 138 of the Negotiable Instruments Act, 1881, is a company for the purposes of Section 141, and trustees shown to be in charge of its affairs can also be proceeded against.

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