Case Note & Summary
The petitioners, 22 individuals who are family members of the drawer of a dishonoured cheque, filed a criminal writ petition under Article 226 of the Constitution of India seeking quashing of FIR No. 550 of 2011 registered at Bhoom Police Station, District Osmanabad, for offences under Section 138 of the Negotiable Instruments Act, 1881. The respondent no.2, Gokul Trimbak Darade, had lodged the complaint alleging that a cheque issued by one of the petitioners was dishonoured. The petitioners contended that they had no role in the transaction and were merely family members of the drawer. The court, after hearing the parties, observed that the allegations in the FIR did not disclose any specific involvement of the petitioners in the issuance of the cheque. The court held that vicarious liability under Section 138 of the NI Act cannot be imposed merely on the basis of relationship with the drawer. The FIR was quashed as it amounted to an abuse of the process of law. The court allowed the petition and quashed the FIR against all petitioners.
Headnote
A) Criminal Law - Negotiable Instruments Act - Quashing of FIR - Section 138, Negotiable Instruments Act, 1881 - Vicarious Liability - The petitioners, family members of the drawer of a dishonoured cheque, sought quashing of FIR alleging that they were not involved in the transaction. The court held that mere relationship with the drawer does not attract vicarious liability under Section 138 without specific allegations of involvement in the issuance of the cheque. The FIR was quashed as an abuse of process of law. (Paras 1-4)
Issue of Consideration
Whether the FIR and criminal proceedings against the petitioners, who are family members of the drawer of a dishonoured cheque, can be quashed for lack of prima facie case under Section 138 of the Negotiable Instruments Act, 1881.
Final Decision
The petition is allowed. The FIR No. 550 of 2011 registered at Bhoom Police Station, District Osmanabad, is quashed and set aside. Rule is made absolute accordingly.
Law Points
- Vicarious liability under Section 138 NI Act requires specific allegations of involvement
- mere relationship insufficient
- quashing of FIR for abuse of process
