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SANDEEP N. BHATT
V. S. Sumtjetocs Through Proprietor Umashankar 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.
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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 proprietorship firm and the proprietor is one Umashankar Agarwal; that the applicant-M/s V.S.Synthetics has neither initiated ECS from an account maintained by it nor is the signatory of ECS mandate
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 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.
The main legal point established in the judgment is the requirement for specific averments to establish vicarious liability of partners in a partnership firm under Section 138 of the NI Act and the n....
The main legal point established in the judgment is that disputed questions of facts and alleged financial fraud require a full-fledged trial and cannot be decided at the stage of quashing the compla....
Liability under Section 141 of the NI Act requires being in charge and responsible for the company's affairs. The court's decision was influenced by the interpretation of this legal provision.
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