NDPS | Mentioning FIR Number On Memos Before Registration Makes the Entire Recovery Suspect: Himachal Pradesh High Court MACT | Once Deceased Is Proven To Be Skilled Worker, Deputy Commissioner's Wage Notification Is Applicable: P&H HC Bank’s Technical Excuses Can’t Override Employee’s Right to Ex Gratia Under Old Circulars: Bombay High Court Slams Canara Bank’s Rejection of Claim Once Worker Files Affidavit of Unemployment, Burden Shifts to Employer to Prove Gainful Employment: Delhi High Court Grants 17B Relief Despite 12-Year Delay Specific Relief Act | Readiness and Willingness Must Be Real and Continuous — Plaintiffs Cannot Withhold Funds and Blame the Seller: Bombay High Court Even If Claim Is Styled Under Section 163A, It Can Be Treated Under Section 166 If Negligence Is Pleaded And Higher Compensation Is Claimed: Supreme Court When Cheating Flows from One Criminal Conspiracy, the Law Does Not Demand 1852 FIRs: Supreme Court Upholds Single FIR in Multi-Crore Cheating Case Initiating Multiple FIRs on Same Facts is Impermissible: Supreme Court Quashes Parallel FIRs and Grants Bail Protection in Refund Case Limitation Act | Quasi-Judicial Bodies Cannot Invoke Section 5 Principles Without Express Statutory Grant: Supreme Court Arbitration Act | Commencement of Proceedings Triggered by Notice Receipt, Not Section 11 Filing: Supreme Court Strong and Cogent Evidence Must Exist at the Threshold to Deny Bail Under Section 319 CrPC: Supreme Court Appellate Court Under Section 37 Cannot Sit in Appeal Over Arbitral Award on Merits: Supreme Court Affidavit Ratifying Power of Attorney Cannot Be Disowned Later: Supreme Court Orders Specific Performance Despite Earlier Revocation Claims No Law Empowers a Corporation to Haunt a Retiree: Supreme Court Quashes Post-Retirement Disciplinary Action for Want of Jurisdiction Mere Expectation of Higher Bids Can't Justify Cancelling a Valid Auction: Supreme Court Quashes GDA’s Arbitrary Rejection of Highest Bidder Prolonged Incarceration Without Trial Violates Article 21, Even in Grave Economic Offences: Supreme Court Grants Bail to Arvind Dham in ₹673 Crore PMLA Case Article 14 | ‘Rules of the Game Cannot Be Changed Midstream’: Supreme Court Quashes Punjab’s Modified Sports Quota Policy for MBBS Admissions Rules of the Game Cannot Be Changed Midway: Supreme Court Quashes Bihar’s Retrospective Recruitment Amendment "Imaginary Ghost" - Court Permits Karthigai Deepam at Thiruparankundram ‘Deepathoon’: Madras High Court 353 IPC | Continuing Prosecution Against Citizens Despite Statutory Findings of Police Atrocities Is Abuse of Process: Kerala High Court Court Cannot Compel Plaintiff to Continue Suit Where No Liberty to File Fresh Suit is Sought: Bombay High Court Claim for Demurrage is Not a Crystallized Debt—Only an Unadjudicated Right to Sue: Andhra Pradesh High Court Declared Foreign Nationals Have No Right to Reside in India: Gauhati High Court Upholds Expulsion of Bangladeshi Woman Without Requiring Deportation Protocols At the Stage of Framing Charge, Presumption Suffices; Suicide Note and Grave Suspicion Enough: Allahabad High Court Refuses to Quash Charge Under Section 306 IPC 173 CrPC | Framing of Charge Marks End of Investigation—Complainant Cannot Reopen Probe Merely by Citing Police Lapses: Bombay High Court “Possession Follows Title” Not An Absolute Rule When Ownership Is Disputed: Andhra Pradesh High Court ORDER 30 CPC | Appeal Filed by Firm Does Not Abate on Death of Partners: Calcutta High Court Bank Cannot Freeze Customer’s Account Based on Third-Party Dispute: Calcutta High Court Slams Axis Bank

Liability in Cheque Bounce Cases – Drawer Alone Liable: Delhi High Court

07 May 2024 8:19 AM

By: Admin


In a significant legal development, the Delhi High Court delivered a judgment on December 6, 2023, that has clarified the liability of individuals in cases of dishonored cheques. The court emphasized that only the drawer of a dishonored cheque can be held criminally liable under Section 138 of the Negotiable Instruments Act, 1881.

The judgment came in response to a petition filed by Arushi Gupta seeking the quashing of Complaint Case No. 4061/2020, which was based on a dishonored cheque allegedly issued by her. The court examined the legal provisions and relevant case law to arrive at its conclusion.

Justice Saurabh Banerjee, presiding over the case, stated in the judgment, “If the cheque in question is returned unpaid on account of the conditions mentioned under Section 138 of the Act, such person alone is liable to be prosecuted for the offence under Section 138 of the Act.”

The court’s decision reaffirmed the principle that the liability for a dishonored cheque falls squarely on the drawer of the cheque. The judgment also highlighted that even in cases of joint liability, individuals other than the drawer cannot be prosecuted unless they are signatories to the cheque and have drawn it on their account.                                                  

Date of Decision: December 6, 2023

ARUSHI GUPTA VS AJAY CHANANA

Latest Legal News