P&H: quashes Section 138 case where cheque was drawn from brother’s account, who was not made an accused

punjab-haryana
⚖️ Order Date: 17 Sep 2026
Headnotes

(i) Negotiable Instruments Act, 1881, S.138, Criminal Procedure Code, 1973, S.482 — Dishonour of cheque — Quashing of complaint and summoning order — Cheque drawn from account not maintained by accused — Where cheque in question was signed by petitioner but drawn from account of...

(ii) Negotiable Instruments Act, 1881, S.138 — Dishonour of Cheque —Cheque issued in family settlement — Prima facie, issuance of a cheque from the account of another person and reference to the same cheque in a family settlement would amount to cheating — Though complaint...


Facts of the Case

P&H: quashes Section 138 case where cheque was drawn from brother’s account, who was not made an accused

The Punjab and Haryana High Court has quashed a cheque dishonour complaint against Fauja Singh after finding that the cheque in question, though signed by him, was drawn from the bank account of his brother Hardeep Singh, who was not made an accused in the case.

Justice Jasjit Singh Bedi was hearing a petition under Section 482 CrPC seeking quashing of the complaint, the summoning order and all consequential proceedings under Section 138 of the Negotiable Instruments Act. The complainants had alleged that Fauja Singh had borrowed Rs.34,65,000 and later, under a family settlement, admitted liability of Rs.22,65,000, for which...

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