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IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
SMT JUSTICE V.SUJATHA, J
Nammi Appalaraju – Appellant
Versus
State of AP – Respondent
ORDER :
V.SUJATHA, J.
This petition, under Section 482 of Cr.P.C., is filed by the petitioners/accused in C.C.No.81 of 2018 on the file of the learned Judicial First Class Magistrate, Kotturu, Srikakulam District, seeking to quash the proceedings against them in the said case.
2. The aforesaid C.C. has been registered against the petitioners/accused for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short, 'the N.I. Act'), on the basis of a private complaint filed by respondent No.2 herein under Section 200 Cr.P.C read with Section 142 of the N.I. Act.
3. The allegations in the complaint filed by respondent No.2/complainant, in brief, are as under:
(i) Accused Nos.1 and 2, who are husband and wife, are known to the complainant as Managing Partner and Partner of Sri N.A.R. Constructions, Visakhapatnam, respectively. On their request, the complainant has lent an amount of Rs.6,00,000/- (Rupees Six Lakhs only) to the accused for business purposes on 20.01.2016 and that the accused have agreed to repay the said amount with interest at the rate of 24% per annum and also executed a promissory note.
(ii) It was further alleged that subsequently, when the c
Prosecution under Section 138 of the N.I. Act is not maintainable against signatories of a cheque unless the firm, as the drawer, is also arraigned as an accused.
Vicarious liability under Section 141 of the N.I. Act arises only when the company or firm commits the offense as the primary offender, and the accused must be the drawer of the cheque to be held lia....
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 ....
A person who is not a signatory to the cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for the offence of dishonour of cheque for insufficiency of funds.
The main legal point established in the judgment is that a complaint filed by a company under Section 138 of the Negotiable Instruments Act must be in the name of the company and can be represented b....
Maintaining prosecution under section 138 of the NI Act requires arraigning the company as an accused, and the vicarious liability of individuals associated with the company is contingent upon the co....
Point of law: Negotiable instruments – Conviction set aside - There can be no vicarious liability unless there is a prosecution against the firm. The vicarious liability gets attracted when the condi....
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.
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