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2022 Supreme(Chh) 120

GOUTAM BHADURI
Charanjeet Singh Saini – Appellant
Versus
Ispat India – Respondent


Advocate Appeared:
For the Petitioners:Mr. K.Rohan, Mr. Manoj Paranjpe & Mr. Rishabh Gupta, Advocates.
For the Respondent:Mr. D.K.Gwalre, Advocate

Judgement Key Points

The final conclusion is that a complaint under Section 138 of the Negotiable Instruments Act is not maintainable if the company involved in the transaction has not been arraigned as an accused. The legal requirement is that the company must be made a necessary party to establish the offence and to hold the directors vicariously liable. Without the company being properly arrayed as an accused, the prosecution against the directors alone is not sustainable, as the commission of the offence by the company is an essential condition for proceeding against its responsible persons (!) (!) .


JUDGMENT :

1. All these petitions are being heard and decided together, as the common questions of law is raised.

2. Different complaints were filed by the respondents under Section 138 of Negotiable Instrument Act as the cheques issued by the petitioners on behalf of M/s. Saini Industries Limited were dishonoured for want of fund in the account. Thereafter, the statutory notice having been served, the repayment of the amount was not made, consequently different complaints under Section 138 of Negotiable Instruments Act were filed.

3. The facts show that initially after filing of the complaint, objections were raised by the petitioners by filing interlocutory applications about maintainability of the petition. The same having been dismissed, revision was preferred and the Sessions Judge dismissed the revision by holding that the Directors cannot be absolved of their criminal liability, despite the fact the company has not been arrayed as an accused. Having aggrieved by the said order, the present petitions.

4. The legal question which arises for consideration that whether the compl

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