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HC allowed the petitions, quashing proceedings under Section 138 read with Section 141 of the Negotiable Instruments Act. The court held that mere association with the accused company through minimal shareholding (0.3%) does not automatically establish vicarious criminal liability. To attract liability under Section 141, petitioners must be conclusively proven to be in charge of and responsible for the accused company's business conduct at the time of the offense. Petitioners were neither signatories to the cheques nor responsible for the company's affairs, thus exempting them from criminal culpability.
HC allowed the petitions, quashing proceedings under Section 138 read with Section 141 of the Negotiable Instruments Act. The court held that mere association with the accused company through minimal shareholding (0.3%) does not automatically establish vicarious criminal liability. To attract liability under Section 141, petitioners must be conclusively proven to be in charge of and responsible for the accused company's business conduct at the time of the offense. Petitioners were neither signatories to the cheques nor responsible for the company's affairs, thus exempting them from criminal culpability.
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