2009(1) Bankmann 306 (Del.)
DELHI HIGH COURT
Sunil Gaur, J.
M/s. Free India Concepts
& Ors. —Petitioners
versus
The State and Anr. —Respondents
Crl. M.C. No. 787-78 of 2007
Decided on 19.12.2008
For the Petitioners:Mr. Gurbaksh Singh, Advocate.
For the State: Mr. R.N. Vats, APP.
For the Respondent Nos. 2:Mr. M.V. Kesavan, Ms. Geetha Gangadharan, Mr. Rajeev Mittal, Advocates.
Headnote:Negotiable Instruments Act, 1881—Section 138 and 141—Dishonour of cheque—Prosecution of company and its Chairman and Managing Director and Head of Delhi Region—Petitioner’s plea that third accused in complainant had represented to complainant that he was against the petitioner Co and induced complainant to enter into business and later to refund the amount deposited by complainant issued post dated cheques and it were dishonoured—Cheques did not bear stamp of petitioner company not it revealed that it had been seen issued on behalf of petitioner company—No allegations in complaint that cheques were of petitioner company or that third accused had signed those cheques as representative/agent of petitioner company—No vicarious or constructive liability could be imposed on petitioner—Petitioners could not be prosecuted for offences under Section 138 Negotiable Instruments Act. (Paras 6 & 7)
Result: Petition allowed.
Sunil Gaur, J.—The above titled two petitions i.e. Crl. M.C. No. 787/07 pertains to. Crl. Complaint Case No. 1073/1 titled M.V. Keshawan v. M/s. Free India Concepts and Ors. under Section 138 of Negotiable Instruments Act (hereinafter referred to as NI Act) regarding two cheques of Rs.60,000/- and Rs. 10,000/- respectively and Crl. M.C. No. 788/07 relates to Crl. Complaint Case No. 1072/1 titled Mr. Geetha Gangadharan v. M/s. Free India Concepts and Ors. under Section 138 of NI Act regarding dishonoring of two cheques of Rs. 5500/- each.
2. Both the sides states that these two petitions can be heard and disposed together. Petitioners in both these petitions are M/s. Free India Concepts and its Chairman and Managing Director and the Head of Delhi region of the aforesaid company. Their stand in these two petitions is that one Mr. S.K. Ganguli had represented to respondent No.2 that he was the agent of the M/s. Free India Concepts and had induced respondent No.2 to join the multi level marketing venture by becoming its agent and after respondent No.2 became the agent under the aforesaid venture at the instance of Mr. S.K. Ganguli, who is an accused before the trial court. Respondent No.2 felt cheated and called upon accused Mr. S.K. Ganguli to refund the amount deposited and accordingly aforesaid S.K. Ganguli issued post dated cheques as referred to above which were dishonored with the remarks insufficient funds.
3. In the aforesaid two complaints under Section 138 of the N.I. Act, impugned in these two petitions, petitioners herein have been summoned as accused by the trial court vide impugned order dated 22nd December. 2004.
4. Learned counsel for the petitioners submits that accused S.K. Ganguli is not an agent of the petitioner No.1 company and the cheques in question have dissect not been signed by aforesaid S.K. Ganguli on behalf of the petitioner company. nor the said cheques bear any stamp of the petitioner company and thus, there is nothing on record to connect the petitioner with accused S.K. Ganguli who is facing trial in the two complaints before the trial Court.
5. A bare perusal of the cheques in question, reveals that learned counsel for If the petitioners is right in his submissions as these cheques do not bear the stamp of the petitioner company nor it reveals that it has been issued on behalf of the petitioner the company.
6. Upon reading of the two criminal complaints in question, it is found that there are no allegations to show that the cheques in question were of the petitioner-company or that they were bearing the stamp of the petitioner-company or that accused S.K Ganguli had signed them in the capacity of the representative/agent of the petitioner-company. Learned counsel for the respondent has not been able to show, as to how vicarious or constructive criminal liability can be imposed upon the petitioners in view of the aforesaid factual position.
7. As far as the allegations against the petitioners in the impugned com- plaints are concerned, at best, it can be said that prima facie, they disclose the ingredients of the offence of cheating, but the two criminal complaints in question have not been filed against the present, petitioners for the offence of cheating. In this view of the matter, the petitioners cannot be prosecuted for committing the offences under Section 138/139/142 of the Negotiable Instruments Act simplicitor.
8. Resultantly, both these petitions are allowed and the criminal complaints Nos.1073/1 and 1072/1, qua the petitioners stand quashed. Trial court record be returned back forthwith for being expeditiously proceeded against accused S.K. Ganguli in accordance with the law.
Petition allowed.
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