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IN THE HIGH COURT OF DELHI AT NEW DELHI
SWARANA KANTA SHARMA
Ram Kumar Pathak – Appellant
Versus
Shashi Devi – Respondent
JUDGMENT :
SWARANA KANTA SHARMA, J
1. The present petition has been filed seeking setting aside of the order dated 28.01.2019, passed by the learned ASJ-03, Karkardooma Courts, North-East District, Delhi [hereafter 'Sessions Court'] in Crl. Revision No. 63/2018 as well as the summoning order dated 26.05.2018 passed by the learned MM, North-East District, Delhi [hereafter 'Magistrate'] in the complaint filed by the respondent no. 1-complainant i.e. CC No. 749/2018, for offence under Section 138 of the Negotiable Instruments Act, 1881 [hereafter 'NI Act'].
FACTUAL BACKGROUND
2. Brief facts of the case, as emerging from the complaint filed under Section 138 of the NI Act, are that the complainant, respondent no. 1 herein, Shashi Devi, had filed the complaint against accused no. 1 (respondent no. 2 herein) M/s Forcia Commodity Solutions OPC Pvt. Ltd., a One Person Company, accused no. 2 (respondent no. 3 herein) Ratna Sharma, stated to be the Director and person in control of accused no. 1, and accused no. 3 (petitioner herein) Ram Kumar Pathak, who is alleged to be involved in the day-to-day business affairs of accused no. 1 and acting under the instructions of accused no. 2. It is th
Vicarious liability under Section 141 of the Negotiable Instruments Act requires specific allegations showing a person's responsibility for conduct of a company's affairs; mere involvement is insuffi....
Specific averments regarding a director's role and responsibility are essential for vicarious liability under Section 141 of the N.I. Act; mere designation is insufficient.
The main legal point established in the judgment is the necessity of arraigning the company as an accused for maintaining the prosecution under Section 141 of the NI Act, and the requirement of speci....
Directors and company secretary can be held liable under Section 138 and 141 of the NI Act if they are responsible for the day-to-day affairs of the company or if their negligence, connivance, or con....
Dishonour of cheque – Offence by company – For maintaining prosecution under Section 141 of NI Act, arraigning of company as an accused is imperative and non-impleadment of company would be fatal for....
(1) Dishonour of cheque – Offence by company – For fastening criminal liability, there is no legal requirement for complainant to show that accused partner of firm was aware about each and every tran....
Vicarious liability under the Negotiable Instruments Act requires proof of a director's active involvement and responsibility in the company's operations, not merely their title.
Merely holding the designation of director does not establish liability under the Negotiable Instruments Act; specific allegations of involvement and responsibility in the company's affairs at the ti....
Point of Law : Where there is not even an averment against the Managing Director or joint Managing Director of the Company therein. [Para 11]
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