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AMIT MAHAJAN
Sandip Vinodkumar Patel – Appellant
Versus
STCI Finance Ltd. – Respondent
JUDGMENT
Amit Mahajan, J.—The present petitions are filed seeking quashing of the summoning orders dated 18.01.2024 in CC No. 163318/2023, 07.02.2024 in CC No. 7054/2023 and 07.02.2024 in CC No. 10565/2023. The petitioners are also seeking the consequential relief of quashing of the aforesaid complaint cases filed under Section 138 of the Negotiable Instruments Act, 1881 (‘NI Act’) read with Sections 141/142 of the NI Act.
2. The complaints were filed alleging that the management of Sadbhav, along with the petitioners herein, approached the respondent company/STCI for availing corporate loan to the tune of Rs.50 crores. It is alleged that on 30.03.2021, the loan facility agreements were executed and the amount of Rs.50 crores was disbursed to Sadbhav on 31.03.2021. Post-dated cheques were thereafter handed to the complainant towards payment of interest and re-payment of the principal loan amount.
3. It is alleged that on presentation for clearance, all the cheques were returned with the remark – “Funds insufficient”. Separate complaints were filed by the complainant for dishonour of cheques under the respective Loan Agreements.
4. It is not disputed that the petitioners were the ind
Dishonour of cheque – A person cannot be made vicariously liable under provisions of Section 141 of NI Act, merely by stating that he was in-charge and responsible for day-to-day-conduct of accused c....
The central legal point established in the judgment is the necessity of specific allegations in the complaint reflecting the role of the accused to establish vicarious liability under Section 141 of ....
Mere designation as a director does not establish liability under Section 138 NI Act; specific allegations of involvement are necessary for vicarious liability.
Vicarious liability under Section 141 of the Negotiable Instruments Act requires specific allegations showing a person's responsibility for conduct of a company's affairs; mere involvement is insuffi....
Vicarious liability under the Negotiable Instruments Act requires proof of a director's active involvement and responsibility in the company's operations, not merely their title.
Specific averments regarding a director's role and responsibility are essential for vicarious liability under Section 141 of the N.I. Act; mere designation is insufficient.
(1) Dishonour of cheque – Impleadment of all Directors of Accused Company on the basis of a statement that they are in charge of and responsible for conduct of business of company, without anything m....
Non-Executive Directors cannot be held liable under Section 141 of the Negotiable Instruments Act without specific averments demonstrating their involvement in the company's day-to-day affairs.
A Company Secretary, who is not involved in the day-to-day affairs of the company and is not responsible for the conduct of its business, cannot be held criminally liable for a dishonored cheque issu....
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