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M. K. THAKKER
Ketanbhai Natwarbhai Patel Thro Poa Vinodbhai Manibhai Patel – Appellant
Versus
State of Gujarat – Respondent
JUDGMENT (ORAL)
This appeal is filed by the appellant challenging the judgment and order passed by the learned 3rd Additional Chief Judicial Magistrate, Nadiad dated 19.06.2023 in Criminal Case No.2636 of 2015 acquitting the respondent Nos.2 and 3 from the offence punishable under Section 138 of the Negotiable Instruments Act, 1886 (‘the N.I.Act’ referred hereinafter).
2. The facts of the case are mentioned hereinbelow:
2.1. Present appellant is the original complainant, who has filed the private complaint before the competent court alleging that he is the power of attorney of Ketanbhai Natwarbhai, who had done the financial transactions with one Vinodbhai Patel. The said Ketanbhai had lent the amount of Rs.1.20 Crore cash in the month of March 2014 as a hand loan to the respondents accused. To repay the amount on repeated request, two cheques bearing cheque Nos.612234 and 627728 of ICICI Bank, Petlad Branch, Nadiad was issued for the amount of Rs.60 Lakh each. On depositing the said cheque with the Bank, the same was returned with an endorsement of ‘account closed’. Therefore, after following the procedure prescribed under the act private complaint came to be filed.
2.2. On record
Dishonour of cheque – Offence by company – In absence of company being arraigned as accused, complaint against accused is non-maintainable.
The central legal point established in the judgment is that maintaining the prosecution under Section 141 of the N.I. Act requires the company to be arraigned as an accused, and without fulfilling th....
For partners to incur vicarious liability under the Negotiable Instrument Act, the partnership firm must first be convicted of the offense; absence of firm conviction precludes individual partner lia....
Vicarious liability under Section 138 of the Negotiable Instruments Act requires the company to be named as an accused; absence of the company renders the complaint against the individual not maintai....
Point of law: Negotiable instruments – Conviction set aside - There can be no vicarious liability unless there is a prosecution against the firm. The vicarious liability gets attracted when the condi....
An individual cannot be prosecuted under Section 138 of the NI Act if they did not issue the cheque drawn on their account. Liability regulations do not extend to directors not involved with the cheq....
Vicarious liability under Section 141 of the N.I. Act arises only when the company or firm commits the offense as the primary offender, and the accused must be the drawer of the cheque to be held lia....
Prosecution of company is mandatory condition precedent under Section 141 NI Act for vicarious liability of directors; complaints against directors quashed without impleading company.
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