2002 (5) TMI 870

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....by Vyalikaval House Building Co-operative Society Limited, Bangalore, bearing signatures of the petitioners issued to the respondent-Bangalore District and Bangalore Rural District Co-operative Central Bank Limited, Bangalore, came to be dishonoured with an endorsement - insufficient funds. As such, the payee of the cheque (respondent), after complying with the requirements of issue of notice for settlement, lodged a complaint under Section 200 of the Cr. P.C. against the petitioners seeking prosecution for an offence punishable under Section 138 of the Negotiable Instruments Act. The learned Magistrate after taking the cognizance, recorded the sworn statement of one Sri V. Thyagaraja, Manager of the payee-Bank and by the order dated 22-1-2....

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....the other hand, arguing in support of the action, Counsel for the respondent contended that no doubt under the bye-laws of the respondent-Bank and the authorisation, it is the Managing Director who is authorised to file the complaint. But, since the Managing Director himself has authorised the present Manager, Sri V. Thyagaraja by an authorisation letter dated 19-11-1999 to file the complaint, there is no illegality in filing of the complaint. In this regard, he has relied upon the decision of this Court in the case of P.A. Verghese v. MAA Communications Private Limited, Bangalore. 7. I have heard the learned Counsels in detail and perused the records of the case as well as the decisions relied upon by both the sides. 8. It is to be n....

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....ut his knowledge. Sub-section (2) further provides that in case it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty. Under the explanation, the word 'Company' has been defined as "any body corporate and includes a firm or other association of individuals". Thus, from reading of a Section 141 of the Act, so far as firm or company or corporate body is concerned, a person who was in charge or who was responsible of the company shall be deemed to be guilty of the offence. 9. On the basis of the Section 141....