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SANDEEP N. BHATT
Umashankar Shyamlal Agarwal – Appellant
Versus
Reliance Capital Ltd. – Respondent
ORDER :
1. This application is filed under Section 482 of the Code of Criminal Procedure, 1973 (`the Code’ for short) for quashing and setting aside the complaints being Criminal Case No.29338 of 2017 qua the applicant, pending before the learned Metropolitan Magistrate, Court No.29, Ahmedabad filed under Section 25 of The Payment and Settlement Systems Act, 2007 (`the Act of 2007’ for short).
2. The facts as stated in the application are such that it is alleged by respondent no.1 in the complaint that one M/s V.S.Texmills Pvt.Ltd. had availed finance/loan from it and had opted for Electronic Clearing Service (ECS) for repayment of finance/loan. As the ECS initiated by M/s V.S.Texmills Pvt.Ltd., got dishonoured, the complaint is filed. The applicant is one of the director in the accused company M/s VS Texmills Pvt.Ltd.
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4. Heard learned advocate Mr.Gupta for the applicant and learned APP Mr.Joshi for respondent no.2-state. Learned advocate for the respondent no.1-complainant was not present.
4.1. Learned advocate for the applicant submitted that the applicant is a director in the accused company; that there is no deemed liability on the director of the company and it is necessary
The judgment establishes the legal principle that the complainant has a duty to make specific averments to establish the accused's liability, emphasizes vicarious liability, and highlights the limita....
The main legal point established in the judgment is the requirement for specific averments and unimpeachable evidence to establish vicarious liability of directors in cases of cheque bounce under Sec....
Vicarious liability under Section 141(1) of the NI Act must be strictly construed, and the complaint should provide specific averments to establish the accused's responsibility for the company's cond....
Specific averments are necessary to establish the liability of a Director under Section 141 of the Negotiable Instruments Act; mere designation is insufficient.
The court emphasized the need for uncontrovertible material to support contentions raised in applications and held that the complaints should not be quashed at this stage.
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