Directors can be held vicariously liable for offenses committed during their tenure, even if they resign before legal proceedings commence.

JUDGMENT /COMMON ORDER :

The instant petitions under Section 482 of Code of Criminal Procedure, 1973 (for short 'Cr.P.C.'), have been filed by the petitioner/accused No.6, seeking to quash the proceedings against him in CC Nos.2892, 1691 and 2893 of 2020 on the file of the Courts of V Additional Judicial Magistrate of First Class, Nellore, VIII Additional Judicial Magistrate of First Class, Nellore and V Additional Judicial Magistrate of First Class, Nellore respectively, which were registered for the offence punishable under Sections 138 and 142 of the Negotiable Instruments Act, 1881 (for short 'Cr.P.C.').

2. The facts that led to filing of the above criminal cases, in brief, are as follows:

(a) Accused Nos.2 to 6 are the Directors of accused No.1 Company - Bilwa Infrastructure Limited. Complainant is M/s. NMR Prefabs, represented by its Proprietor Sri Mettukuri Siva Reddy does no business of supply and erection of Prefab works on credit and cash basis. Accused Nos.2 to 6 being the Directors and responsible for the day-to-day affairs of A1-Company, gave work/purchase order to the complainant company on 09.02.2018 for Rs.34,00,000/- and the same was revised on 04.06.2018 for Rs.35,16,430/-.

(b) That being so, out of the total due amount of Rs.35,16,430/- the accused made part payments and also returned the material on different spells. On deducting the same, the remaining amount due to the complainant by the accused is Rs.27,67,472/-.

(c) After repeated demands by the complainant, in discharge of the legally enforceable debt, on 15.04.2019, the accused had issued six post dated Cheques Bearing Nos.000194 dated 20.04.2019, 000195 dated 27.04.2019 000196 dated 05.05.2019, 000197 dated 12.05.2019, 000198 dated 19.05.2019 and 000199 dated 26.05.2019 for Rs.5,00,000/- each drawn on HDFC Bank, P.T. Colony, Kharkhana Road, Secunderabad duly signed by accused No.2, in favour of the complainant towards part payment.

(d) On presentation of the above cheques by the complainant in Indian Bank, Vedayapalem, Nellore, the same were returned due to insufficient funds. Inspite of receipt of legal notice dated 03.07.2019 got issued by the complainant, the accused neither sent any reply nor paid any amount to the complainant. As such, the complainant filed three private complaints which above mentioned cases, against accused Nos.1 to 6.

(e) Being aggrieved by the registration of the cases, petitioner/accused No.6 filed the present petitions seeking quashment of the said cases against him.

Arguments Advanced at the Bar

3. Heard Sri Sivalenka Ramachandra Rao, learned Counsel for the petitioner and Sri Mangena Sree Ramarao, learned Counsel for respondent No.1.

4. Learned Counsel for the petitioner/accused No.6 petitioner is innocent of the offence alleged implicated in the said cases. Petitioner would submit that the against him and he was falsely is nothing to do with the day-to-day affairs its business. Learned to be the Director of A. 1-resignation was also accepted It is submitted that the and the allegations made in alleged offence against the proceedings against the petitioner in the Counsel has placed reliance on the judgments of the Hon'ble Apex Court in Sunita Palita and others v. Panchami Stone Quarry, (2022) 10 SCC 152; Siby Thomas v. Somany Ceramics Ltd., AIR 2023 SC 4929 and National Small Industries Corporation Limited v. Harmeet Singh Paintal and another , (2010) 3 SCC 330 and Katta Sujatha v. Fertilizers and Chemicals Travancore Limited and another , (2002) 7 SCC 655 .

5. Contrasting the same, learned Counsel for respondent No.1 would submit that petitioner is one of the Directors o