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2020 Supreme(Del) 1515

IN THE HIGH COURT OF DELHI
Jyoti Singh, J.
Dharna Goyal - Appellants
Vs.
Aryan Infratech Pvt. Ltd. - Respondent
Crl. M.C. 708/2020, Crl. M.A. 2910/2020 and 2912/2020
Decided On: 16-10-2020

Advocates Appeared:
For the Appellant :Sahiba Singh, Advocate

Headnote:(A) Negotiable Instruments Act, 1881 - Sections 138, 141, and 142 - Quashing of complaint for dishonoured cheque - The impugned complaint was filed against the petitioner who resigned prior to issuance of the relevant cheque, and no averments were made to show her involvement or responsibility. A complaint under Section 141 requires specific allegations against individuals to establish their liability, which was absent in this case. The court relied on past judgments emphasizing that mere designation is insufficient to impose liability for the actions of a company post-resignation. (Paras 30, 31)

(B) Legal Liability - Vicarious liability - Mere designation as a director or officer does not automatically entail liability under the Negotiable Instruments Act; specific averments linking the accused to the conduct of business during the relevant time are essential for prosecution. (Paras 26, 28)

(C) Absence of Complainant - The court may proceed ex-parte if the complainant elects not to appear despite being served notice, allowing the accused's petition for quashing to be heard on merit. (Paras 9, 8)

Facts of the case:
The complaint arose from a dishonoured cheque issued by a company; the petitioner claimed she resigned before the cheque's issuance and was not involved in its transaction. (Para 10)

Findings of Court:
The complaint was quashed, supporting documents confirmed the petitioner’s resignation prior to the cheque date, negating any claims of liability. (Paras 30, 31)

Issues: The court addressed whether the complaint and summoning could be quashed due to lack of specific allegations against the petitioner, who was no longer associated with the company when the offence occurred. (Paras 6, 30)

Ratio Decidendi: Liability under Sections 138 and 141 necessitates clear allegations linking the accused to the offence at the time of commission; a lack of specific averments precludes liability even with prior directorship. (Paras 24, 31)

Result: The petition was allowed, quashing the complaint and related proceedings against the petitioner.

Table of Content
1. petition filed for quashing complaint and summons. (Para 1 , 2 , 3 , 4 , 5)
2. court observes established precedent for handling ex-parte complaints. (Para 6 , 7 , 8 , 9)
3. argument of resignation and non-liability post-resignation. (Para 10 , 11 , 12 , 14)
4. specific allegations needed for vicarious liability. (Para 15 , 16 , 17)
5. judicial standards affirmed for complaint requirements under nia. (Para 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25)
6. legal observations on vicarious liability under nia. (Para 26 , 27)
7. case specific findings on absence of adequate allegations. (Para 28 , 29)
8. summoning orders quashed based on legal insufficiency. (Para 30 , 31)
9. conclusion allowing the petition and dismissing complaint. (Para 32)

JUDGMENT :

Jyoti Singh, J.

1. Present petition has been filed by the Petitioner for quashing the summoning order dated 28.11.2016 and the complaint bearing CC No. 6573/2017 filed by the Respondent against the Petitioner under Sections 138 /141/142 of the Negotiable Instruments Act (hereinafter referred to as ' NIA ') as well as all further proceedings emanating therefrom including the order dated 04.12.2019 passed by the Special Judge NDPS in Criminal Revision bearing CR No. 114/2019 titled as Dharna Goyal v. M/s. Aryan Infratech Pvt. Ltd.

2. Brief facts shorn of unnecessary details are that a complaint was filed by the Respondent against M/s. Ringing Bells Pvt. Ltd., Accused No. 1 and five other Accused persons including the Petitioner herein under Sections 138 /141/142 of the NIA . It was alleged in the complaint that in discharge of legal liability, Accused No. 1 issued a cheque bearing No. 731759 dated 28.10.2016 for an amount of Rs. 2 crores, duly signed by Accused No. 2, with the consent and knowledge of the other Co-accused including the Petitioner and that the same was dishonoured on presentation. A legal notice of demand dated 02.11.2016 was sent on 04.11.2016 by the complainant but despite the receipt of the notice the Accused persons failed to remit the alleged outstanding amount. On the filing of the complaint, the Trial Court summoned the Accused including the Petitioner. The Petitioner herein has been arrayed as Accused No. 5 in the capacity of CEO of Accused No. 1 Company.

3. As per the Petitioner, she received the summons for the first time on 10.01.2019 and immediately thereafter preferred a Criminal Revision bearing CR No. 114/2019 on 28.02.2019, challenging the summoning order. On 25.03.2019 the Sessions Court issued notice to the Respondent and the Petitioner took repeated steps to effect service on the Respondent through his counsel before the Trial Court. However, none appeared on behalf of the Respondent. Vide order dated 04.12.2019 the Sessions Court dismissed the Revision petition and the Petitioner approached this Court.

4. It needs to be mentioned that vide order dated 08.06.2020 this Court after capturing the controversy involved issued notice to the Respondent, returnable on 06.07.2020. When the petition was listed on 06.07.2020 counsel for the Petitioner submitted that she had served the Respondent through the electronic mode and sought time to place on record an affidavit to that effect. Report of the Registry regarding service on the Respondent through other permissible modes was not on record and the Registry was directed to place the same on record. When the petition was listed on 16.07.2020, the Report of the Registry, placed on record, indicated that the Respondent had been served through e-mail. Counsel for the Petitioner also submitted that the notice sent at the registered e-mail address of the complainant, available in the records of the Ministry of Corporate Affairs, had not bounced back and was therefore deemed to have been received. Although no one appeared for the Respondent, no adverse orders were passed by the Court. Counsel for the Petitioner

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