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of <h1>Conviction overturned, accused sentenced under Section 138 of Negotiable Instruments Act.</h1> <h3>DIAMOND TRANSPORT CORPORATION Versus M/s. SEA WINGS SHIPPING, VARGHESE PHILIP, STATE OF KERALA</h3> DIAMOND TRANSPORT CORPORATION Versus M/s. SEA WINGS SHIPPING, VARGHESE PHILIP, STATE OF KERALA - TMI Issues:1. Appeal against order of acquittal of the 2nd respondent under Section 138 of the Negotiable Instruments Act.2. Interpretation of Section 141 of the Negotiable Instruments Act regarding liability of Managing Partner in a firm.3. Requirement of specific averments in a complaint for liability under Section 141.4. Evidence required to prove execution of a cheque in a criminal complaint.Analysis:1. The appeal was filed against the acquittal of the 2nd respondent in a case under Section 138 of the Negotiable Instruments Act. The complainant alleged that the accused issued a dishonored cheque and refused to pay the amount despite a statutory notice, leading to the complaint.2. The main contention revolved around the interpretation of Section 141 of the Act regarding the liability of the Managing Partner of a firm. The counsel for the complainant argued that the Managing Partner is responsible under Section 141, citing relevant case laws and the need for specific averments in the complaint.3. The court referred to the Supreme Court's decision in S.M.S. Pharmaceuticals Ltd. case, emphasizing the necessity of specific averments in a complaint under Section 141. It was clarified that being a director in a company does not automatically imply liability under Section 141, and specific averments are crucial to establish liability.4. Regarding the evidence required for proving the execution of a cheque, the court noted that the 2nd accused, who was the Managing Partner, could not escape responsibility merely due to lack of averments in the complaint. The court also highlighted the definitions of 'Company' and 'Director' under the Act to support the applicability of the principles laid down in the S.M.S. Pharmaceuticals Ltd. case.5. Ultimately, the court set aside the order of acquittal of the 2nd accused and convicted him under Section 138 of the Negotiable Instruments Act. The 2nd accused was sentenced to undergo imprisonment till rising of the Court and to pay compensation to the complainant, with provisions for simple imprisonment in case of default.This detailed analysis of the judgment highlights the key legal issues, interpretations of relevant sections of the law, and the court's decision in the case.
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