Only cheque drawer liable under Section 138 NI Act; joint account holder without signature not prosecutable : Gujarat HC

The Gujarat High Court set aside a criminal complaint under Section 138 of the Negotiable Instruments Act filed against a wife who was merely a joint account holder, clarifying that liability attaches only to the actual drawer of the cheque.

Background & Facts

The Dispute

The applicant, Shilpa Hitesh Chhaganbhai Mistri, was named as accused No.2 in a complaint under Section 138 of the NI Act. The sole allegation against her was that she is the wife of accused No.1 and a joint holder of the bank account from which the dishonoured cheque was issued. No other factual allegations were made.

Key Facts

• The cheque in question was drawn on a joint account held by the applicant and her husband.
• The signature on the cheque belonged exclusively to the husband, who is accused No.1.
• The complaint did not allege that the applicant signed or issued the cheque.
• The applicant filed a criminal miscellaneous application (R/CR.MA/6821/2024) seeking quash of the complaint on the ground of abuse of process.
• The respondent State of Gujarat and an additional respondent opposed the application.

Procedural History

• 2024: Criminal miscellaneous application No. 6821 filed before the Gujarat High Court seeking quash of the Section 138 complaint.
• 14/08/2026: Judgment delivered by Hon. Mrs. Justice M. K. Thakker. The rule was made absolute and the application allowed.

Parties' Positions

• Applicant: Asserted that the complaint was false, frivolous and malicious; she was not the drawer nor signer of the cheque; liability should not attach merely because she is a joint account holder.
• Respondent (State): Opposed the quash, presumably contending that joint account holders could be held liable under Section 138.

Relief Sought

The applicant prayed for quashment of the complaint filed under Section 138, arguing that the proceedings against her constituted an abuse of the process of law.