Direct averments of director responsibility under the Negotiable Instruments Act can sustain prosecution at the quashing stage.

Direct averments that a company's directors were in charge of and responsible for its business were held sufficient to support prosecution under the Negotiable Instruments Act at the threshold. The complaint alleged that the directors issued the cheques in discharge of a legal liability, and Section 141 could not be defeated at the quashing stage merely by asserting lack of knowledge, which remained a matter for trial. As no illegality, perversity, or jurisdictional error was shown in the refusal to discharge, interference under Section 482 of the Code of Criminal Procedure was declined and the complaint, summoning order, and discharge order were upheld.

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Issues: Whether the criminal complaint and summoning order under the Negotiable Instruments Act were liable to be quashed for want of specific averments that the petitioner was in charge of and responsible for the conduct of the company's business, and whether the order refusing discharge called for interference under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: The complaint contained direct assertions that the company's directors were responsible for the conduct of its business and had issued the cheques in discharge of a legal liability. Section 141 of the Negotiable Instruments Act, 1881 fastens liability on persons who, at the time of commission of the offence, were in charge of and responsible to the company for its business. The petitioner could still establish at trial that the offence was committed without his knowledge, but at the initial stage the complaint disclosed the necessary basis for proceeding. The trial court's refusal to discharge was supported by reasons, and no illegality, perversity, or jurisdictional error was shown to justify interference in inherent jurisdiction.

Conclusion: The complaint, summoning order, and order refusing discharge were upheld, and quashing was declined.

Ratio Decidendi: Where a complaint under Section 138 of the Negotiable Instruments Act, 1881 contains direct averments that a director was in charge of and responsible for the company's business, the proceedings cannot ordinarily be quashed at the threshold in the absence of patent illegality or jurisdictional error.

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