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Issues: (i) whether the Magistrate had jurisdiction to recall the order issuing summons under Section 204 of the Code of Criminal Procedure, 1973; (ii) whether the complaint contained the specific averments necessary to fasten vicarious liability on the directors under Section 141 of the Negotiable Instruments Act, 1881.
Issue (i): whether the Magistrate had jurisdiction to recall the order issuing summons under Section 204 of the Code of Criminal Procedure, 1973.
Analysis: Once process was issued after the Magistrate took cognizance and recorded the preliminary statements, the Code did not confer any power of review or recall at that stage. The later recall of summons was therefore contrary to the scheme of the Code and the binding law on the subject.
Conclusion: The Magistrate had no jurisdiction to recall the summons order.
Issue (ii): whether the complaint contained the specific averments necessary to fasten vicarious liability on the directors under Section 141 of the Negotiable Instruments Act, 1881.
Analysis: Liability under Section 141 arises only when the complaint specifically avers that, at the time of the offence, the accused was in charge of and responsible for the conduct of the business of the company, or that the offence was committed with the consent, connivance, or neglect of the officer concerned. Mere reproduction of the statutory language is not always enough, but the complaint here contained more than a mechanical recital and alleged participation in meetings and negotiations relating to the dishonoured cheques and outstanding dues.
Conclusion: The complaint disclosed sufficient material to proceed against the respondents under Section 141.
Final Conclusion: The dismissal of the complaint proceedings could not be sustained, and the summoning of the respondents was restored.
Ratio Decidendi: A complaint seeking to fasten vicarious liability for dishonoured cheques must contain specific averments satisfying Section 141, and a Magistrate cannot recall process once validly issued under Section 204 in the absence of statutory power to do so.