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K. NATARAJAN
Kaningat Rajan – Appellant
Versus
Ample Technologies Private Limited – Respondent
JUDGMENT/ORDER
1. This petition is filed by the petitioner-accused No.3 under Sec. 482 of Cr.P.C. for quashing the criminal proceedings in C.C.No.4639/2020, pending on the file of XXVIII ACMM, Bengaluru, arising out of PCR No.636/2020.
2. Heard the arguments of learned counsel for the petitioner and learned counsel for the respondent for respondent No.1.
3. The case of the petitioner is that the respondent has filed a private complaint under Sec. 200 of Cr.P.C. read with Sec. 138 of the Negotiable Instrument Act, 1881 (for short ' N.I. Act '), alleging that the cheque was issued by the company-accused No.1 and accused No.2 and 3 are the Directors of the company. The cheque was dishonored. Hence, the complaint came to be filed. The trial Court took the cognizance against accused Nos.1 to 3 and issued summons. Accused No.3-the present petitioner is challenging the criminal proceedings against him.
4. The learned counsel for the petitioner has contended that accused No.2 is the Managing Director of accused No.1-company. On behalf of accused No.1, accused No.2 has issued the cheque which was signed by accused No.2, therefore, the proceedings against accused No.3 is not sustainable. Ther
The necessity of specific averments in the complaint to establish the liability of the accused and the burden of proof on the accused to show lack of responsibility for the company's affairs.
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.
Specific averments are necessary to establish the liability of a Director under Section 141 of the Negotiable Instruments Act; mere designation is insufficient.
Specific averments showing a Director's responsibility for the conduct of the company's business are necessary to establish liability under Section 141 of the Negotiable Instruments Act, 1881.
Directors cannot be held vicariously liable for a company's dishonoured cheque without specific allegations of their involvement in the company's operations, as required under Section 141 of the N.I.....
Dishonour of cheque – Offence by company – For maintaining prosecution under Section 141 of NI Act, arraigning of company as an accused is imperative and non-impleadment of company would be fatal for....
Specific averments showing the director's responsibility for the conduct of the company's business are necessary to establish liability under Section 141 of the Negotiable Instruments Act.
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