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IN THE HIGH COURT OF KARNATAKA AT DHARWAD
S.VISHWAJITH SHETTY
Shrinivasareddy, S/o. Pothala Byyareddy – Appellant
Versus
Basavaraj, S/o. Kallappa Godachikonda – Respondent
ORDER :
S. VISHWAJITH SHETTY, J.
1. The petitioner is before this Court with a prayer to quash the entire proceedings as against him in C.C. No.1020/2021 pending before the Court of the Senior Civil Judge and JMFC, Hirekerur, for the offence punishable under Section 138 of the N.I. Act.
2. Learned counsel for the petitioner submits that the cheque in question was issued on the account of the Company, which is not arraigned as an accused before the trial Court. He submits that in the absence of the Company being arraigned as an accused, the petitioner who is the Managing Director of the Company cannot be prosecuted. Under similar circumstances, this Court has quashed the proceedings as against accused No.2, who is the wife of the petitioner herein. Accordingly, he prays to allow the petition.
3. Per contra, learned counsel for the respondent who has opposed the petition submits that the complainant may be given the liberty to initiate fresh proceedings as against the accused after impleading the Company as a party to the proceedings.
4. Accused Nos.1 and 2 in the impugned proceedings are the Managing Director and the Director of the Company known as Arunodaya Seeds Private Limited. The c
A company must be arraigned as an accused for vicarious liability to apply under Section 138 of the N.I. Act; thus, prosecution of directors is invalid without this requirement.
Maintaining the prosecution under Sec. 141 of N.I. Act requires the company to be arraigned as the accused.
(1) Principle of res judicata is equally applicable in criminal matters.(2) Dishonour of cheque – A person cannot be vicariously prosecuted, especially for offences under IPC, merely on account of fa....
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....
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.
Prosecution of company is mandatory condition precedent under Section 141 NI Act for vicarious liability of directors; complaints against directors quashed without impleading company.
Directors cannot be prosecuted under Section 138 of the NI Act without the company being joined as an accused, as vicarious liability requires the company to be a party to the proceedings.
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