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Delhi court sets aside summon order in cheque bounce case
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....elhi court sets aside summon order in cheque bounce case<BR>Corp. Laws / SEBI / IBC<BR>Dated:- 11-8-2026<BR>PTI<BR>New Delhi, Aug 11 (PTI) A Delhi court has set aside a magistrate’s order summoning a man to stand trial in a Rs 5.75 crore cheque bounce case against a trust, saying he was neither a drawer nor a signatory to the cheques. The court also said that the principle of vicarious crimi....
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....nal liability for companies cannot be applied to a trust under the Negotiable Instruments (NI) Act. Additional Sessions Judge Saurav Pratap Singh Laler was hearing a criminal revision plea filed by one Pranshu Aggarwal challenging the September 2025 order of a magisterial court summoning him to stand trial in the case. The case stems from a criminal complaint filed by a limited liability p....
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....artnership (LLP) enterprise against a trust and 10 individuals alleging that two cheques of around Rs 5.75 crore were returned unpaid. The magisterial court had summoned Aggarwal on the grounds that the complaint described him as being "actively involved" in the activities of the trust. In an order dated August 5, the court said that according to the Supreme Court, Section 141 of the Negot....
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....iable Instruments Act (dealing with vicarious criminal liability for companies and key personnel in cheque bounce cases) had no application whatsoever to a trust, as a trust was not a juristic person. It said even if it was assumed for the sake of argument that the provision applied to trusts, Aggarwal did not fall under the parameters affixing vicarious liability. “The revisionist (Agg....
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....arwal) is not the drawer of either cheque; he is not the signatory thereto; he is not a trustee; he is not shown, either by the complaint or by any document annexed to it, to be an office bearer, officer, manager or secretary of the trust, or to hold any office in it whatsoever,” the court said. It said Aggarwal is not shown to be authorised to operate the account on which the cheques are d....
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....rawn and that he is not shown to have executed any document, or to have furnished any guarantee, in relation to the transaction in question. “The proceedings in the said complaint case shall not continue against the revisionist,” the court said setting aside the magistrate’s order. The court, however, clarified that trial would continue against the remaining accused persons. PTI MNR....
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