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Issues: Whether a person who had resigned as a director before the cheque was dishonoured, and against whom the complaint contained no specific averment that he was the signatory or otherwise in charge of the company's business at the relevant time, could be prosecuted under Section 141 of the Negotiable Instruments Act, 1881.
Analysis: Liability under Section 141 is a form of constructive or vicarious criminal liability and therefore requires strict compliance with the statutory conditions. The complaint must contain clear and specific averments showing that the accused was, at the time of the offence, in charge of and responsible for the conduct of the company's business. Mere prior directorship or some earlier association with the company is not enough. On the facts, the accused had resigned before the cheque was presented and dishonoured, the complainant was aware of the resignation, and the complaint did not state that he was the signatory of the cheque or otherwise responsible for its issuance. A contention raised for the first time that he was the authorised signatory could not be entertained in the circumstances.
Conclusion: The accused was not liable to be prosecuted under Section 141 on the basis pleaded, and the challenge to the discharge failed.