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PRASHANT KUMAR MISHRA, N. V. ANJARIA
Mansi Finance (Chennai) Ltd. – Appellant
Versus
M. Lalitha – Respondent
JUDGMENT :
PRASHANT KUMAR MISHRA, J.
1. Leave granted.
2. The present Appeal lays challenge to the impugned final order dated 28.06.2024 passed by the High Court of Judicature at Madras1 [For short ‘High Court’] in Criminal Original Petition No. 10494 of 2024, whereby the High Court, in exercise of its jurisdiction under Section 482 of the Code of Criminal Procedure, 19732 [For short ‘Cr.P.C.’] quashed the criminal proceedings against respondent Nos. 1 to 4 herein (arrayed as accused nos. 3, 6, 8 and 9) in S.T.C. No. 1980 of 2023, pending on the file of the Court of the learned IV FTC Metropolitan Magistrate, George Town, Chennai, arising out of a private complaint instituted by the appellant under Sections 138 and 141 of the Negotiable Instruments Act, 1881.3 [For short ‘NI Act’]
A. FACTUAL MATRIX
3. The appellant, M/s Mansi Finance (Chennai) Ltd., is a finance company carrying on business at Chennai and has instituted the said complaint through its Manager and Power of Attorney holder, A. Ramesh. On the other hand, the first accused in the complaint is M/s Ravindra Bharathi Educational Society, a society registered under the provisions of the Societies Registration Act, 1860. The seco
(1) Dishonour of cheque – Offence by company – For fastening criminal liability, there is no legal requirement for complainant to show that accused partner of firm was aware about each and every tran....
Specific averments regarding a director's role and responsibility are essential for vicarious liability under Section 141 of the N.I. Act; mere designation is insufficient.
An individual in a company cannot be vicariously liable for criminal offenses under the NI Act unless they are responsible for the company's conduct at the time of the offense.
Vicarious liability under Section 141(1) of the NI Act must be strictly construed, and the complaint should provide specific averments to establish the accused's responsibility for the company's cond....
The main legal point established in the judgment is the necessity of arraigning the company as an accused for maintaining the prosecution under Section 141 of the NI Act, and the requirement of speci....
Specific averments are necessary to establish the liability of a Director under Section 141 of the Negotiable Instruments Act; mere designation is insufficient.
Vicarious liability under Section 141 of the Negotiable Instruments Act requires specific allegations showing a person's responsibility for conduct of a company's affairs; mere involvement is insuffi....
Liability of directors under Section 138 of the Negotiable Instruments Act depends on their active role and responsibility for the company's business conduct, not merely their directorship.
(1) Dishonour of cheque – Impleadment of all Directors of Accused Company on the basis of a statement that they are in charge of and responsible for conduct of business of company, without anything m....
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