Deliberate Signature Mismatch to Defeat Cheque Payment Attracts S.138 NI Act: J&K & Ladakh High Court

The Jammu & Kashmir and Ladakh High Court held that deliberately appending a signature on a cheque which does not tally with the specimen signature available with the bank, with the intent to prevent encashment, attracts liability under Section 138 of the Negotiable Instruments Act, 1881.

The Court observed that the grounds of dishonour under Section 138 are not to be interpreted narrowly and include deliberate acts or omissions by the drawer aimed at frustrating payment.

Relying on Supreme Court precedents, the Court clarified that intentional signature mismatch or unauthenticated alterations are conscious steps to defeat honouring of the cheque and cannot shield the drawer from prosecution.

[Abdul Hamid Wani v. Abdul Hamid Lone]