Cheque dishonour liability does not extend to a non-proprietor, non-drawer authorised signatory of a proprietorship concern.

Section 138 of the Negotiable Instruments Act fastens liability on the drawer of the cheque, while Section 141 extends vicarious liability only in the case of a company, firm, or similar association. A proprietorship concern does not attract that framework in the same manner as a company or firm. A person who is neither the proprietor nor the drawer, and whose role is limited to signing a distributorship agreement or being described as an authorised signatory, cannot be prosecuted under Section 138 through Section 141. The complaint was quashed against such a person.

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Issues: Whether a person who is neither the proprietor nor the signatory of a cheque issued by a proprietorship concern can be prosecuted under Section 138 of the Negotiable Instruments Act, 1881 by invoking Section 141 of that Act.

Analysis: Section 138 fastens liability on the drawer of the cheque. Section 141 creates vicarious liability only where the offence is committed by a company, firm, or other association of individuals. A proprietorship concern does not fall within that vicarious liability framework in the same manner as a company or firm. Mere signing of the distributorship agreement or being described as an authorised signatory, without being the proprietor or the drawer of the cheque, is insufficient to attract criminal liability under Section 138 through Section 141.

Conclusion: The petitioner could not be proceeded against for the alleged offence, and the complaint was quashed as against her.

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