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2021 (7) TMI 115 - HC - Indian LawsDishonor of Cheque - prosecution against the person who signed the cheque or the person who has authorized the signatory - - Insufficiency of funds - criminal proceedings initiated against these petitioners No. 1 and 2 or not - HELD THAT:- The complaint filed by the complainant before the trial Court makes it clear that it was the accused No. 1 who issued the Cheque in question towards legally recoverable debt due by accused Nos. 1 and 2. Similar contention is taken in the legal notice that was issued immediately after dishonor of the Cheque. Complainant in his sworn statement before the trial Court stated similar facts that it was accused No. 1 only who signed the Cheque. Of course, it is stated that accused No. 1 was authorized to maintain and sign the joint account on which the Cheque in question was drawn. Therefore, it is clear that even though the Cheque in question pertains to a joint account of accused Nos. 1 and 2 it was signed only by accused No. 1 and not by accused No. 2. The law on the point is made very clear. When accused No. 1 alone signed the Cheque in question, even though it is stated that accused No. 2 had authorized accused No. 1 to sign the Cheque, will not make her liable for the offence punishable under Section 138 of the N.I. Act. It is only accused No. 1 who signed the Cheque and issued in favour of the complainant and therefore, he can be prosecuted before the trial Court. Petition allowed in part.
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