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of <h1>Court quashes complaint and summoning order, petitioner not liable under Sections 138 and 141</h1> <h3>Amrit Rani Versus Malhotra Industrial Corporation</h3> The court quashed the complaint and summoning order under Section 482 of the Criminal Procedure Code. It held that the petitioner, claimed to be a ... - Issues:1. Quashing of complaint and summoning order under Section 482 Code of Criminal Procedure.2. Interpretation of Section 138 Negotiable Instruments Act regarding liability of individuals in a company for offenses.3. Application of Section 141 of the Act on the liability of persons in charge of a company.4. Analysis of judgments interpreting liability under Section 141.5. Examination of evidence to determine liability of an individual in a firm.Detailed Analysis:1. The petitioner sought quashing of the complaint and summoning order under Section 482 Code of Criminal Procedure. The complaint was filed by a firm for an offense under Section 138 Negotiable Instruments Act, alleging non-payment of dues by the accused firm. A cheque issued by the accused firm was dishonored, leading to the complaint. The petitioner claimed to be a sleeping partner and not responsible for the firm's conduct.2. Section 141 of the Negotiable Instruments Act imposes liability on individuals in a company for offenses committed by the company. The provision holds persons in charge of the company's business responsible for the offense. However, individuals can escape liability by proving lack of knowledge or exercising due diligence to prevent the offense.3. The court referred to judgments interpreting Section 141, emphasizing that only individuals in charge or responsible for the company's affairs are liable for offenses. The court highlighted the need to establish that the individual was in charge or responsible for the company's conduct to hold them accountable.4. Citing the case of Ess Bee Food Specialities v. Kapur Brothers, the court reiterated that liability under Section 141 hinges on proving the individual's role in the company's affairs. The court emphasized the necessity of demonstrating that the individual was in charge or responsible for the company's conduct to establish liability.5. In the present case, the court found no allegations or evidence indicating that the petitioner was in charge of the firm's affairs or liable for its conduct. As a result, the court quashed the summoning order under Section 138-B of the Negotiable Instruments Act. However, the court clarified that the petitioner could be summoned if evidence emerges showing her involvement in the firm's affairs under Section 319 of the Code of Criminal Procedure.
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