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AJOY KUMAR MUKHERJEE
Chandi Prasad Poddar – Appellant
Versus
Virgo merchants Pvt. Ltd. – Respondent
JUDGMENT :
Ajoy Kumar Mukherjee, J.
1. The petitioner herein has been arraigned as an accused in a proceeding initiated under section 138 read with section 141 of the Negotiable Instrument Act (In short N.I. Act) being CS/27105/2021. Ld. Court below issued process against the petitioner and five other accused persons vide its order dated 23rd August, 2021.
2. Being aggrieved by the said criminal proceeding the petitioner approached before this Court for quashing the same mainly on two broad grounds
(b) The role played by the petitioner has not been averred in the petition of complaint by making specific averments to that effect, specially when the petitioner in reply to opposite party’s demand notice had clearly answered that he resigned prior to the issuance of the cheque. In the above context it was necessary for the opposite party to make specific averment in the plaint as to how a
A director cannot be held vicariously liable for a company's actions after resignation unless specific allegations of involvement are made in the complaint.
Directors who have resigned cannot be held liable for cheques issued after their resignation unless specific allegations of responsibility are made.
Liability under Section 141 of the Negotiable Instruments Act depends on the role played by a person in the affairs of the company at the time of the offence, not just on designation.
A director who resigns before the cheque issuance cannot be held liable under Sections 138 and 141 of the NI Act, evidenced by credible documents demonstrating resignation.
A director who resigns before a cheque is issued cannot be held liable for its dishonour, supported by public documents proving resignation.
A director who has resigned prior to the issuance of a cheque cannot be held vicariously liable for its dishonor under Section 138 of the N.I. Act.
Dishonour of cheque – Offence by company – If person responsible to company for conduct of business of company, was not in charge of conduct of business of company, then he can be made liable only if....
Directors can be held liable for offenses under the Negotiable Instruments Act if they are in charge of the company's affairs at the time of the offense, regardless of their resignation, unless they ....
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