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IN THE HIGH COURT OF CHHATTISGARH AT BILASPUR
Shri Justice Arvind Kumar Verma, J
Ashutosh Mishra S/o Shri M. N. Mishra – Appellant
Versus
Sky High Media Through Its Partner, Shri Ajay Sharma S/o Shri Satyapal Sharma – Respondent
Order :
(Arvind Kumar Verma, J.)
1. With the consent of the parties, matter is heard finally.
2. The present petition under Section 482 of the Code of Criminal Procedure, 1973 has been preferred by the petitioner for quashment of Criminal Proceedings bearing Case No.4823/2018 which is pending in the Court of Judicial Magistrate First Class, Raipur (Annexure P/2) and the subsequent revision order dated 13.09.2023 passed by the learned 4th ADJ, Raipur (C.G.) (Annexure P/1).
3. Brief facts of the case is that the petitioner was made Director's of Net Ink Technologies Pvt. Ltd. without his knowledge on 31.03.2018 and in a matter of few hours were removed from the post of Director. Two cheques bearing No.000268 and 000269 dated 21.03.2018 and 11.04.2018 were issued by Respondent No. 2 in favour of Respondent No. 1 for an amount of Rs. 17,50,000/- (Rupees Seventeen Lacs Fifty Thousand Only) and Rs. 50,00,000/- (Rupees Fifty Lacs Only) respectively and the same had been dishonoured by drawee Bank on 20.06.2018. At a later stage, Respondent No. 1 (Sky High Media) preferred a complaint u/s 138 of Negotiable Instruments Act, 1881 against Respondent No. 2. (Net Ink Technology) and made many rand
A non-signatory director cannot be held liable under Section 138 of the Negotiable Instruments Act if not responsible for the company's conduct at the time of the offence.
The main legal point established in the judgment is the requirement for specific averments in the complaint to establish vicarious liability and the need for such liability to be pleaded and proved, ....
A director's liability under the N.I. Act is contingent on their status at the time of the cheque's issuance.
Directors who have resigned cannot be held liable for cheques issued after their resignation unless specific allegations of responsibility are made.
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....
A Director who resigns before the issuance of cheques cannot be held liable under Section 141 of the Negotiable Instruments Act, requiring necessary averments in complaints for vicarious liability.
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.
The court quashed proceedings against a former director for cheque dishonor, ruling that allegations did not establish an offense post-resignation, emphasizing the need to prevent abuse of legal proc....
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