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Corporate Leaders Cleared: Cheque Dishonor Complaint Dismissed for Lack of Specific Legal Proof Under Section 138

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Full Text of the Document

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....HC quashed complaint against corporate office bearers for cheque dishonor due to insufficient legal averments. The court found no substantive evidence demonstrating petitioners' direct responsibility or involvement in cheque issuance. Crucial legal principles require explicit demonstration that accused were "in charge" and "responsible for company affairs" under Sections 138 and 141 of Negotiable Instruments Act. Complainant failed to establish petitioners' vicarious liability or provide specific details of their consent or knowledge regarding cheque transaction. Mere procedural reproduction of statutory provisions without substantive supporting facts cannot justify summoning accused. Petition allowed, complaint quashed against petitioners.....