Authorisation in cheque dishonour cases is essential where liability is said to belong to several persons; conviction was set aside and remanded.

A prosecution under Section 138 of the Negotiable Instruments Act by one person for a liability allegedly owed to several persons requires clear authorisation from the others to receive the cheque and maintain the complaint on their behalf. In the absence of marked authorisation, the conviction could not stand on the existing record. The conviction and sentence were therefore set aside, and the matter was remanded to the trial court for fresh proceedings with liberty to adduce additional evidence on authorisation.

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Issues: Whether a complaint under Section 138 of the Negotiable Instruments Act, 1881 could be sustained where the cheque was issued in the name of one person for a liability said to be due to more than one person, and whether the accused was entitled to relief by way of remand for production of further evidence on authorization.

Analysis: Section 138 contemplates prosecution by the payee or holder in due course. Where the underlying liability is asserted to belong to several persons, the complainant can prosecute only if there is clear authorization from the other persons enabling him to receive the cheque and maintain the complaint on their behalf. In the absence of marked authorization, the conviction could not be sustained on the existing record. Considering the circumstances and the nature of the dispute, the complainant was to be given one more opportunity to produce additional evidence, and the proceedings were therefore sent back to the trial court.

Conclusion: The conviction and sentence were set aside, and the matter was remanded to the trial court for fresh proceedings with liberty to adduce additional evidence.

Final Conclusion: The petitioner obtained relief against the conviction, but the complaint itself was not finally terminated and was restored to the trial court for further adjudication.

Ratio Decidendi: A prosecution under Section 138 of the Negotiable Instruments Act, 1881 by one person for a liability owed to several persons requires proof of authorization from the others; without such authorization, the conviction cannot stand on the existing evidence.

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