In N. Harihara Krishnan Vs J. Thomas, the Supreme Court has pronounced a point of law that the offence under Section 138 of Negotiable Instruments Act is person specific. It was also clarified that the general concept under Cr.P.C that cognizance was taken against the offence and not against the offender was not appropriate in prosecution under NI Act. The complainant in the case was issued a cheque, which was signed by one Harihara Krishnan. The cheque was drawn allegedly in discharge of balance sale consideration payable by M/s Norton Granites Pvt. Ltd. However, the cheque was in fact drawn on account of another private limited company, M/s Dakshin Granites Pvt.Ltd., in which also Harihara Krishnan was a director. The cheque was dishonoured for want of funds. Under the impression that the cheque was drawn on the account of Norton Granites Pvt. Ltd presumably because consideration was allegedly due from them), the complaint was filed only arraying Harihara Krishnan as ...
We are a full service law firm and this blog as well as our website is an effort towards making the public aware of their rights