Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
Press 'Enter' after typing page number.
Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
Press 'Enter' after typing page number.
Press 'Enter' after typing page number.
Don't have an account? Register Here
Press 'Enter' after typing page number.
Issues: Whether the criminal complaints under the Negotiable Instruments Act against the directors could be quashed for want of specific averments showing their role in the conduct of the company's business and in the issuance of the cheques.
Analysis: The complaint, statutory notice, rejoinder and supporting material were read together. They contained specific averments that the accused were directors, were actively participating in the affairs of the company, and that the cheques were issued on behalf of the company with the consent of the concerned directors. In proceedings arising under Sections 138 and 141, such pleadings were held sufficient at the threshold to attract vicarious liability and to justify trial, while the petitioners' denial of participation and responsibility raised factual questions requiring evidence. The Court also noted that the contention that the company had ceased business and that the petitioners were not involved in day-to-day affairs was a matter for trial rather than quashing.
Conclusion: The petitions for quashing were not liable to be allowed and the complaints were permitted to proceed against the petitioners.
Ratio Decidendi: Specific averments in the complaint that company directors were in charge of the affairs of the company and that the cheques were issued with their consent are sufficient to proceed against them under Sections 138 and 141 of the Negotiable Instruments Act, leaving disputed questions of role and responsibility to trial.