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IN THE HIGH COURT OF KARNATAKA AT DHARWAD BENCH
S.VISHWAJITH SHETTY
Agarwal Coal Corporation Pvt. Ltd. – Appellant
Versus
Benaka Sponge Iron Pvt. Ltd. – Respondent
ORDER :
1. Above captioned seven petitions arise between the same parties and therefore they are heard together with the consent of the learned counsel appearing for the parties and disposed of by this common order.
2. Heard the learned counsel appearing for the parties.
3. The petitioner company had initiated seven separate proceedings before the Court of V Addl. Civil Judge & JMFC, Ballari against accused Nos.1 and 2 companies for the offence punishable under Section 138 of N.I. ACT. The allegation against the accused companies is that cheques issued by the said companies towards repayment of the amount due by the companies to the petitioner company for supply of coal were dishonoured and in spite of statutory notices issued to accused Nos.1 and 2 companies, amount covered under cheques in question was not repaid and therefore seven separate criminal cases were filed against accused Nos.1 and 2 companies for the offence punishable under Section 138 of N.I. ACT. In the said seven criminal cases registered before the Court of Magistrate in C.C. No. 1098/2015, C.C. No. 1096/2015, C.C. No. 1099/2015, C.C. No. 1101/2015, C.C. No. 1097/2015, C.C. No. 1100/2015, C.C. No. 1095/2015 separate
Liability for dishonor of a cheque falls on authorized signatories under Section 138 and Section 141 of the N.I. Act, reinforcing that signatories are accountable even without specific allegations ag....
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.
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.....
Liability under Section 138 of the Negotiable Instruments Act primarily rests on the drawer of the cheque, which in this case is the institution, not the individual signatory, thus prosecution agains....
Only the drawer of a cheque can be prosecuted under Section 138 of the NI Act; a joint account holder is not liable unless they signed the cheque.
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