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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
V. R. K. KRUPA SAGAR
Divakar Atluri – Appellant
Versus
State Of Andhra Pradesh – Respondent
ORDER :
(V.R.K. Krupa Sagar, J.)
1. Summoning order of a learned Magistrate is under challenge in this criminal revision case.
2. M/s. Andhra Pradesh State Financial Corporation (APSFC) filed a complaint under section 200 CrPC alleging offence under section 138 read with section 142 of the Negotiable Instruments Act, 1881 (for short “the NI Act, 1881). A1 to A6 are arraigned in the complaint. On 21.06.2023, after verifying the complaint and sworn statements of the complainant, the learned Magistrate passed the following order:
3. Learned Magistrate registered the case as C.C.No.375 of 2023. The said case is pending before learned IV Ad
Directors of a company cannot be summoned under Section 138 of the NI Act without specific allegations of their individual responsibility for the company's conduct.
A signatory of a cheque can be held liable under Section 138 of the N.I. Act, and the dismissal of a complaint for want of prosecution does not bar the revisional court from correcting such orders.
The company must be summoned as an accused in Section 138 N.I. Act cases for proceedings against its Directors to be valid.
Summoning order not interlocutory, revision maintainable even by third party invoking suo motu power; barred if beyond 90-day limitation from issuance, challenge to consequential warrants ineffective....
For maintaining a prosecution under Section 138 of the Negotiable Instruments Act, arraigning of the company as an accused is imperative. The person in charge of the company cannot be held liable if ....
Directors can only be held liable under the N.I. Act if the complaint explicitly states their role in the company's affairs at the time of the offence.
A director's personal endorsement of a cheque can implicate a company in liability under the NI Act, reinforcing the scrutiny necessary in summoning orders.
Point of Law : On face of the record, participation of applicants is not found in the day to day functioning of Company, hence, on basis of the version that defence would be seen at the time of evide....
The main legal point established in the judgment is that compliance with legal provisions, including the conduct of an inquiry as required under Section 202(1) Cr.P.C., and the applicability of Secti....
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