Specific averments required for director liability in cheque dishonour complaints; vague assertions are insufficient at summoning stage.
A director cannot be summoned in a prosecution under the Negotiable Instruments Act on the basis of a vague assertion that she was in charge of the company's affairs. For vicarious liability to arise at the summoning stage, the complaint must contain specific averments showing how that director was responsible for the conduct of the business connected with the offence. A bare recital of directorship or general responsibility is insufficient. Because no particular act or factual basis was attributed beyond that recital, the summoning orders were quashed and the proceedings against the director were terminated.
Issues: Whether the summoning orders against a director in complaints under Section 138 of the Negotiable Instruments Act were liable to be quashed where the complaints contained only a general assertion that she was in charge of and responsible for the company's affairs.
Analysis: At the stage of summoning, the Magistrate must be satisfied that the complaint discloses a case against each accused. For fastening liability on a director in a prosecution under Section 138, the complaint must contain specific averments showing how that director was responsible for the conduct of the business connected with the offence. A mere bald statement that the accused was a director and was in charge of the company's affairs is insufficient. On the pleadings before the Court, no act or basis was attributed to the petitioner beyond the bare recital that she was a director.
Conclusion: The summoning orders could not be sustained and were quashed, and the petitioner was discharged in all the complaints.
Final Conclusion: The proceedings against the petitioner failed for want of specific allegations establishing her responsibility for the offence at the summoning stage.
Ratio Decidendi: A director cannot be summoned in a prosecution under Section 138 of the Negotiable Instruments Act on the basis of a vague or bald assertion of responsibility; the complaint must contain specific averments showing the basis of vicarious liability.
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AI Drafter ✕
TaxTMI 
