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of <h1>Court sets aside summoning order under Section 138 NI Act, finding petitioner not liable. Signatures forged, complaint dismissed.</h1> <h3>Ayush Jain Versus State & Ors.</h3> Ayush Jain Versus State & Ors. - TMI Issues:1. Setting aside the summoning order dated 10.01.2017 under section 138 of the Negotiable Instruments Act, 1881.2. Allegations of involvement in financial transactions without consent.3. Implications of being a director in a company facing legal proceedings.4. Vicarious liability under Section 141 of the NI Act.5. Dispute over signatures on loan documents and related legal implications.6. Allegations of forgery, cheating, and fraud against the respondent.7. Dispute over the responsibility of the petitioner in financial transactions.8. Evaluation of evidence and legal precedents in determining liability.Analysis:1. The petitioner sought to set aside the summoning order dated 10.01.2017 under section 138 of the Negotiable Instruments Act, 1881, arguing that he was not involved in the financial transactions and had resigned from the company before the disputed cheque was issued.2. The petitioner denied involvement in the financial dealings, stating that he had resigned from the company and had no role in the transactions, emphasizing that his signatures were forged on the loan documents and the cheque in question.3. The petitioner raised concerns about being falsely implicated in the recovery proceedings, highlighting his lack of involvement in the company's affairs and disputing the allegations made against him in the complaint.4. The legal counsel argued that the petitioner's liability under Section 141 of the NI Act is based on being in charge of the company's business, emphasizing the need for specific averments in the complaint to establish such liability.5. The petitioner's defense relied on legal precedents and interpretations of Section 141 of the NI Act to argue that vicarious liability applies only when the accused was in charge and responsible for the company's conduct of business.6. Allegations of forgery, cheating, and fraud were made against the respondent, leading to the petitioner filing complaints and initiating legal proceedings against them for illegal activities, including the issuance of false cheques and forging documents.7. The court considered the evidence, including forensic reports on signatures, to determine the petitioner's involvement in the financial transactions, ultimately finding that the petitioner's signatures were forged, and he had resigned from the company before the disputed cheque was issued.8. The judgment highlighted the importance of evaluating evidence and legal precedents in determining liability, emphasizing that allowing the proceedings to continue would be an abuse of the court process, leading to the setting aside of the complaint and further proceedings against the petitioner.
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