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C. T. RAVIKUMAR, SANJAY KAROL
Bijay Agarwal – Appellant
Versus
Medilines – Respondent
JUDGMENT :
C.T. RAVIKUMAR, J.
Leave granted.
On the consent of the parties, the matter was finally heard.
1. The captioned appeals by a special leave are directed against the impugned common order dated 09.01.2024 passed by the High Court of Karnataka at Bengaluru in Criminal Petition Nos. 13095 of 2023 and 13153 of 2023 respectively.
2. Heard the learned senior counsel appearing for the appellant and the learned counsel appearing for the respondent.
3. In view of the factual background obtained in these cases, a question of seminal importance arises for consideration viz. “whether the signatory of a cheque authorized by the Company is a drawer and whether such a signatory could be directed to deposit any sum out of the fine or compensation awarded by the trial Court under Section 148 of the Negotiable Instruments Act, 1881 (for short ‘NI Act’)” as a condition for suspending the sentence in an appeal filed against his conviction under Section 138 of the NI Act?
4. The contention of the appellant is that he is only an authorized signatory of the company M/s. Gee Pee Infotech Private Limited, which was held liable to adequately compensate the complainant company by the trial Court. The stat
Dishonour of cheque – As in case of position qua Section 143A, NI Act, merely because an officer of a company concerned is authorised signatory of cheque concerned by itself will not make such an off....
Dishonour of cheque – Liability to pay interim compensation – Signatory of cheque, authorized by “Company”, cannot be directed to pay interim compensation under Section 143A of NI Act.
Directors may be held liable under Section 148 of the NI Act despite company liquidation, but deposit conditions depend on individual case circumstances, considering the definition of 'drawer'.
(1) Dishonour of cheque – Offence by company – Authorized signatory is not a drawer of cheque – Signatory is merely authorized to sign on behalf of company and does not become drawer.(2) Penal provis....
(1) Dishonour of cheque – Offence by company – It is drawer Company which must be first held to be principal offender under Section 138 of NI Act before culpability can be extended, through a deeming....
Interim compensation under Section 143A of the Negotiable Instruments Act can only be ordered after the plea of not guilty is entered, ensuring adherence to the due process in initiating such financi....
The court held that interim compensation under Section 143-A of the NI Act requires a prima facie case evaluation, leading to the quashing of the trial court's order due to existing disputed facts.
Court affirmed that an appellate court may require a deposit under Section 148 of the Negotiable Instrument Act, and petitioners must establish exceptional circumstances to waiver this mandate.
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