In Bijoy Kumar Moni vs. Paresh Manna & Anr., the Supreme Court clarified that for an offence under Section 138 of the Negotiable Instruments Act, 1881, the cheque must be drawn on an account maintained by the accused. It emphasized that an authorized signatory of a company cannot be considered the “drawer” of the cheque and that prosecution under Section 138 cannot be sustained solely against the signatory if the principal offender (the company) is not arraigned as an accused. Relying on Shri Gurudatta Sugars Marketing (P) Ltd. v. Prithviraj Sayajirao Deshmukh & Ors., the Court upheld the Calcutta High Court’s acquittal of the director, highlighting that liability under Section 138 is strict and applies specifically to the drawer of the cheque, thereby dismissing the criminal appeal.
