The Telangana High Court has upheld criminal proceedings in a cheque bounce case against a woman who acted as a surety for her husband’s loan. The petitioner had issued a Rs 1 crore cheque in March 2017, which was dishonoured in 2018 due to insufficient funds.
Justice J Sreenivas Rao, in a judgment dated September 23, affirmed the applicability of Section 138 of the Negotiable Instruments Act to sureties who issue cheques. The court rejected the petitioner’s argument that she was not the principal borrower and therefore lacked a “legally enforceable debt” with the complainant, SBPL Infrastructure Limited.
The High Court emphasized that while the presumption of liability is rebuttable, allowing a drawer to present a defense, “the dishonest drawers cannot escape liability merely by dodging postal delivery.” However, considering the petitioner’s gender, the court dispensed with her presence before the trial court unless specifically required during the course of the trial.
Source: https://indianexpress.com/article/cities/hyderabad/telangana-hc-cheque-bounce-case-woman-surety-husband-10287635/