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ASHA MENON
Kabita Ghosh And Another – Appellant
Versus
Central Bureau Of Investigation – Respondent
JUDGMENT
asha Menon, J. - This petition has been filed under Section 482 of the Cr.P.C. for quashing of criminal proceedings and summoning order dated 17th January, 2020 passed by the Ld. Special Judge (PC act), CBI, RaCC/New Delhi in CBI case No.412/2019 titled as CBI Versus Chanchal Ghosh and Others under Section 120B IPC read with Sections 420/465/471 IPC and under Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption act, 1988 pending before the Special Judge, CBI.
2. The facts as relevant for the disposal of this case are that various persons were found to have defrauded the Corporation Bank, Vasant Vihar branch, New Delhi. a chargesheet was filed against seven accused persons but the petitioners were shown in column No.12. The learned Special Judge, vide the impugned order dated 17th January, 2020, summoned all the seven accused persons including the petitioners to face trial.
3. Mr. atul Jha, learned counsel for the petitioners submitted that the petitioners were not involved in the day-to-day functioning of the company, M/s Unitrack Logistics Private Limited, of which they were no doubt, the named directors, but in actual fact, they were housewives and, th
The judgment established the requirement for an active role with criminal intent to summon an accused and highlighted the court's inherent powers to quash criminal proceedings.
A director's mere position does not establish criminal liability; there must be evidence of active involvement and intent in the alleged offense for summoning to be justified.
It is trite that court would exercise its power under Section 482 Cr.P.C. only in rarest of rare cases, when there is perversity in orders of courts below or it results in miscarriage of justice.
The company must be summoned as an accused in Section 138 N.I. Act cases for proceedings against its Directors to be valid.
Non-executive directors cannot be held liable under the Negotiable Instruments Act without specific allegations of their involvement; general averments are insufficient to summon them for proceeding.
Vicarious liability cannot be imposed on a company's directors under IPC unless there is specific statutory provision; direct involvement must be established.
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