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IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA
GBL Chemicals Limited – Appellant
Versus
State of NCT of Delhi – Respondent
JUDGMENT :
NEENA BANSAL KRISHNA, J.
1. By way of the aforesaid two Petitions under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (hereinafter referred to as “ BNSS ”) read with Section 482 of the Code of Criminal Procedure, 1973 (hereinafter referred to as “Cr.P.C”) The Petitioners seek the quashing of the Summoning Orders dated 04.01.2025 passed by the Learned Judicial Magistrate, New Delhi (hereinafter referred to as the “Ld. Trial Court”) in Complaint Case No. 5688/2024 titled M/s Progfin Private Limited vs. GBL Chemicals Ltd. & Ors. and Complaint Case No. 6285/2024 titled M/s Progfin Private Limited vs. Ganesh Benzoplast Ltd & Ors. respectively under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881.
2. Briefly stated, the case Respondent No. 2/M/s Progfin Private Limited (hereinafter referred to as the "Complainant"), a Non-Banking Financial Company ("NBFC"), extended a credit facility to Petitioner No. 1 in Crl. M.C. 2155/2025, GBL Chemical Limited (hereinafter referred to as the "Borrower").
3. In Crl. M.C. 2156/2025, Petitioner No. 1 Ganesh Benzoplast Limited (hereinafter referred to as the "Corporate Guarantor"), being the holding Company,
Vicarious liability of company directors under Section 141 of the NI Act is established if directors were in charge of the business, regardless of the signatory's involvement and claims of internal f....
The company must be summoned as an accused in Section 138 N.I. Act cases for proceedings against its Directors to be valid.
Point of Law : On face of the record, participation of applicants is not found in the day to day functioning of Company, hence, on basis of the version that defence would be seen at the time of evide....
For maintaining a prosecution under Section 138 of the Negotiable Instruments Act, arraigning of the company as an accused is imperative. The person in charge of the company cannot be held liable if ....
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....
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.
The main legal point established in the judgment is that the role of each accused in the commission of the offence can only be determined during the trial and cannot be examined in detail by the cour....
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