TaxTMI 
TaxTMI 
2018 (7) TMI 1602
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.... Pvt. Ltd. It may be added here that Mr. Rahul Shivam and Mr. Nicholas Fortune were reflected in the array of accused as the Authorized Signatory and Chief Financial Officer respectively, while Mr. Vir Karan Awasthy was described as the Managing Director of the company accused. 2. On the basis of preliminary inquiry in each case, the Metropolitan Magistrate issued process including against the petitioners herein. The petitioners, besides certain others, feeling aggrieved, approached the Court of Sessions invoking its revisional jurisdiction by separate petitions (CR Nos.97-108/2015), the prime contentions urged on their behalf being that there was no case made out for they being summoned as accused on the basis of allegations that they were the Directors of the company accused, denying that they had any concern or responsibility with the conduct of the day-today business of the company. 3. The afore-mentioned revision petitions were decided by the court of Sessions by a common order dated 03.08.2015. While revision petitions of co-accused Naseer Mohd. MF Al Hajri, were allowed, the proceedings against him having been dropped, the revision petitions of the petitioners herein w....
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....nsufficiency, etc., of funds in the account - Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for 8 [a term which may be extended to two years'], or with fine which may extend to twice the amount of the cheque, or with both: Provided that nothing contained in this section shall apply unless- (a) the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier; (b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of....
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....siness, of the company at the time of commission of the offence under Section 138 of the Negotiable Instruments Act, 1881 who can be subjected to criminal action with reference to Section 141; (ii). If the person committing an offence under Section 138 of the Negotiable Instruments Act, 1881 is a company, the person who was signatory to the cheque which is dishonoured is clearly responsible for the incriminating act and would be liable to be proceeded against under Section 141 (2); (iii). By virtue of the office they hold, the persons working in the capacity of the Managing Director or Joint Managing Director are deemed to be in charge of, and responsible for the conduct of the business of, the company and, therefore, can be proceeded against in terms of Section 141; (iv). Merely because a person is a director of the company is not sufficient to make him liable under Section 141, there being no deeming that by holding such position he is in charge of, or responsible for the conduct of the business of, the company within the meaning of Section 141; (v). It is necessary for the complainant to specifically aver in the complaint that at the time the offence w....
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....C.F.O. in the name and style of M/s. Bush Foods Overseas Pvt. Ltd., 505-506, 5th Floor, DLF South Court, Saket, New Delhi-110017 and are engaged in the business of supply and export of different kind of Rice etc. 3. That the accused no.2 to 6, apart from being Directors/authorized signatory/Managing Director/C.F.O. of the accused no.1, are also the in-charge of day-to-day affairs & conduct of their business including procurement of business including export of rice, placing of orders for polishing of rice to be exported and issuance of cheque/s on behalf of the above said accused company after mutual discussions, verification of accounts of the suppliers, such as the complainant and other expenses borne by the accused company in its daily routine basis. Further all the accused persons no.2 to 6 are regularly in touch with each other and no cheque can be issued without their consultation amongst them and consenting for the cheque to be issued after a green signal by the chief financial officer (A-4), who always keeps an eye upon the financial matters of the company apart from being responsible for the financial health of the company. xxx 11. That it is now clear that the in....