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The case involves a petition to quash proceedings u/s 138 of the Negotiable Instruments Act due to failure to implead the company as an accused. The petitioner, a Managing Director, was accused of issuing a cheque on behalf of the company. The court found non-maintainability of the complaint against the petitioner as the company was not made an accused despite the cheque being issued on its behalf. Citing the Himanshu vs. B. Shivamurthy case, the court allowed the petition, quashing the proceedings against the petitioner. The court emphasized the importance of impleading the company in cases involving cheques issued on its behalf. Following the Five Judge Bench of the Supreme Court in expeditious trial of cases, the High Court held that, it is clear that Section 202(2) CrPC is not applicable in the present proceedings which is u/s 138 N.I. Act.
The case involves a petition to quash proceedings u/s 138 of the Negotiable Instruments Act due to failure to implead the company as an accused. The petitioner, a Managing Director, was accused of issuing a cheque on behalf of the company. The court found non-maintainability of the complaint against the petitioner as the company was not made an accused despite the cheque being issued on its behalf. Citing the Himanshu vs. B. Shivamurthy case, the court allowed the petition, quashing the proceedings against the petitioner. The court emphasized the importance of impleading the company in cases involving cheques issued on its behalf. Following the Five Judge Bench of the Supreme Court in expeditious trial of cases, the High Court held that, it is clear that Section 202(2) CrPC is not applicable in the present proceedings which is u/s 138 N.I. Act.
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