- In a case titled Parvaiz Ahmed vs. Fida Mohammad Ayoub the Hon’ble J&K&L HC has held that the dishonour of a cheque due to an incomplete signature would be an offence constituted under Section 138 of the NI Act.
- The instant plea was filed by Parvaiz Ahmed and another, challenging the complaint under 138 NI Act, claiming that the cheque was dishonoured due to the incomplete signature which was not covered under 138 NI Act.
- Reliance was placed by the appellants on the decision of the Apex Court in Vinod Tanna vs. Zaheer Siddiqui (2002) SCC wherein the Court had held that the dishonour of cheque due to an incomplete signature would not constitute an offence under 138 NI Act.
- The Court observed in the present case, that at the outset, it appears that section 138 NI Act would be attracted only in the two situations- first, insufficiency of funds and second- the amount exceeds the amount arranged to be paid by that account. But there have been many cases where the Apex Court has interpreted this provision in such a way so as to include within its ambit where dishonour takes place other than these two reasons.
- Reliance was placed by the Court on the decision of the apex Court in Laxmi Dyechem vs. State of Gujarat and Ors. (2012) SCC. The Court also said that the judgement given in Vinod Tana Case was per incuriam. In this case, the Court held that the criminal proceedings in such a situation of cheque dishonour should be allowed to continue.
- Accordingly, the instant appeal was dismissed by the Hon’ble Court.
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