Either or survivor bank a/c and 138 ni act

WHATSAPP 91-8075113965 (Querist) 04 November 2017 This query is : Resolved
sirs,

two person was having a " Either or survivor " bank A/c . A cheque was signed by one person alone and was issued to complainant, which was bounced....complaint filed u/s 138 NI Act. whether 138 will be attracted to a person who has not signed to the cheque ?
any high court or supreme court rulings ?
what is the difference in legal position with regard to non-signing by one of the A/c holder, in case of a JOINT ACCOUNT and EITHER OR SURVIVOR ACCOUNT.....?

Follow Query

Report Abuse

Rajendra K Goyal (Expert) 04 November 2017
How are you concerned?

Person has signed the cheque, he is liable.

The Supreme Court of India in the matter of Aparna A Shah Vs. Sheth Developers (P) Ltd held that the joint account holder cannot be held liable unless he has also signed and issued the cheque in question. In other words, all persons to the joint account must sign and only in that event, all such persons shall be liable for dishonor of cheque under Section 138 of the Act.

http://www.legalsolutions.in/chequebounce/2014/sc-liability-in-case-of-joint-account-holders/

Refer case : Urmila Kumari vs Rukmani Devi & Ors it was held by Delhi High Court:

https://indiankanoon.org/doc/106083683/

13. In the light of the above discussion, I find merit in the submissions made by the counsel for the petitioner that no case has been made out in the said complaint case filed by the respondent no.1 against the petitioner who is merely a joint account holder in the bank with her husband and she cannot be held liable for the cheque in question which remained unpaid due to insufficiency of funds in the said count.