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    <title>2008 (1) TMI 989 - DELHI HIGH COURT</title>
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    <description>A complaint under Sections 138 and 141 of the Negotiable Instruments Act is not liable to be quashed under Section 482 CrPC unless it discloses no sufficient basis to prosecute the director and amounts to an abuse of process. Director liability is not automatic, but the complaint must contain specific averments that the accused was in charge of and responsible for the company&#039;s business at the relevant time. Here, the complaint contained such allegations, and the petitioner&#039;s reply to notice admitted he was the whole-time director while disputing liability only on the basis that the cheques were collateral security. That defence raised a trial issue, so quashing was not warranted and the petitions were dismissed.</description>
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    <pubDate>Fri, 04 Jan 2008 00:00:00 +0530</pubDate>
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      <title>2008 (1) TMI 989 - DELHI HIGH COURT</title>
      <link>https://www.taxtmi.com/caselaws?id=301992</link>
      <description>A complaint under Sections 138 and 141 of the Negotiable Instruments Act is not liable to be quashed under Section 482 CrPC unless it discloses no sufficient basis to prosecute the director and amounts to an abuse of process. Director liability is not automatic, but the complaint must contain specific averments that the accused was in charge of and responsible for the company&#039;s business at the relevant time. Here, the complaint contained such allegations, and the petitioner&#039;s reply to notice admitted he was the whole-time director while disputing liability only on the basis that the cheques were collateral security. That defence raised a trial issue, so quashing was not warranted and the petitions were dismissed.</description>
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      <pubDate>Fri, 04 Jan 2008 00:00:00 +0530</pubDate>
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