03 Sep 2026 12:27 PM
Punjab & Haryana High Court
Punjab & Haryana High Court

Dishonour of Cheque -- Subsequent Settlement Recording Payment by Husband's Company -- Special Power of Attorney authorising husband cannot be sidestepped to avoid liability of wife

Negotiable Instruments Act, 1881, S.138 -- Dishonour of Cheque -- Subsequent Settlement Recording Payment by Husband's Company -- A subsequent settlement agreement recording that a company would discharge the outstanding amount does not by itself discharge liability of a co-accused who had executed a Special Power of Attorney authorising another to act on her behalf and to have such acts ratified as her own. A party cannot claim benefit of the settlement while disowning the underlying liability it was meant to settle, and such disputed questions are to be resolved at trial rather than in proceedings for quashing.

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