Cheque dishonour liability requires specific averments of control and mandatory statutory notice before prosecuting directors or officers.

For fastening liability under the Negotiable Instruments Act in cheque dishonour cases, the complaint must contain specific averments showing that each director or officer was in charge of and responsible for the company's business at the relevant time; a mere designation as director is insufficient. Statutory notice under Section 138 is also mandatory, and where notice was not issued to the petitioners, prosecution could not be sustained. As the cheque was not shown to have been issued by the petitioners and the complaint lacked allegations of their day-to-day control, continuation of the proceedings against them was held unjustified.

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Issues: Whether the criminal proceedings for dishonour of cheque could be quashed against the petitioners, who were not shown to have issued the cheque, were not issued the statutory notice, and were not specifically averred to be in charge of the company's day-to-day affairs.

Analysis: For fastening liability under Sections 138 and 141 of the Negotiable Instruments Act, 1881, the complaint must contain specific averments showing how and in what manner the accused directors were in charge of and responsible for the conduct of the company's business at the relevant time. A mere designation as director is insufficient. The statutory notice under Section 138 is also a mandatory condition precedent, and in the present case the notice was not issued to the petitioners. The cheque was issued from the personal account of another accused, not by the petitioners or by the company, and the complaint did not state that the petitioners were managing the day-to-day activities of the company.

Conclusion: The proceedings were liable to be quashed as against the petitioners, and continuation of the complaint against them would not be justified.

Ratio Decidendi: To prosecute a director or officer for cheque dishonour in relation to company liability, the complaint must contain specific averments of responsibility for the company's business at the relevant time, and compliance with the statutory notice requirement is essential.

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