Quashing of cheque dishonour complaints against nominee directors refused; role and liability must be tested at trial.

Complaints under Section 138 of the Negotiable Instruments Act and the accompanying summoning orders were challenged under Section 482 CrPC on the ground that the petitioners were only nominee or non-executive directors. The Delhi HC held that the complaints, affidavits and supporting documents were sufficient for issuance of summons, and that the petitioners' role, designation and alleged lack of involvement in company affairs raised defence issues for trial rather than grounds to stop prosecution at the threshold. The quashing plea was rejected, and the trial proceedings were found to be free from infirmity.

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Issues: Whether the complaints and summoning orders under Section 138 of the Negotiable Instruments Act, 1881 were liable to be quashed under Section 482 of the Code of Criminal Procedure, 1973 on the plea that the petitioners were only nominee or non-executive directors and were not in charge of the company's business.

Analysis: The petitions sought quashing of criminal complaints arising from dishonoured cheques and the consequential summoning orders. The Court held that the materials placed before the Magistrate, including the complaints, affidavits and accompanying documents, were sufficient for issuance of summons and that the trial court had not committed any error in proceeding on that basis. It further held that the defence concerning the petitioners' role, designation and lack of participation in the company's affairs was a matter for trial and could not be examined to short-circuit the prosecution at the threshold. The Court also noted that under the procedure contemplated by the Negotiable Instruments Act, 1881 and the Code of Criminal Procedure, 1973, the accused could raise their defence before the Magistrate, seek recall of witnesses if so advised, and contest the matter in accordance with law.

Conclusion: The plea for quashing was rejected, and the proceedings before the trial court were held to be free from infirmity.

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