Back
CHEEKATI MANAVENDRANATH ROY
Nava Education Trust Thro Shambhubhai Valjibhai Patel – Appellant
Versus
Prakashbhai Dhulabhai Patel – Respondent
JUDGMENT :
1. This application under Section 482 of the Code of Criminal Procedure, 1973 is filed to quash the complaint filed under Sections 138 and 141 of the Negotiable Instruments Act, 1881 (for short “the NI Act”) and the criminal prosecution launched thereon against the applicant.
2. Heard learned advocate for the applicant and learned advocate for the respondent no.1.
3. Concise statement of facts leading to list in this case may be stated as follows:-
3.1 It is the case of the complainant that Nava Education Trust through its Trustee borrowed a sum of Rs.2,00,000/- from the complainant on 08.03.2012. Thereafter, the authorized signatory of the said Trust by name Shri Shambhubhai Valjibhai Patel, who is the accused in the said complaint, issued a cheque on 30.05.2019 for Rs.2,00,000/- towards repayment of the said loan and towards discharge of legally enforceable debt. The complainant has presented the said cheque in Dena Bank, Himmatnagar to encash the same. But the said cheque was dishonoured and it was returned with endorsement “payment stopped by drawer”. Thereafter, the complainant has issued a legal notice to the accused informing him about the dishonour of cheque and dema
Specific averments are required to establish vicarious liability, and vicarious liability arises only when the company or firm commits the offense as the primary offender.
Trustees of an accused Trust are liable for cheque dishonor under NI Act, with notice served on the Trust meeting legal requirements.
(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....
(1) Dishonour of cheque – A person might have been jointly liable to pay debt, but if such a person who might have been liable to pay debt jointly, cannot be prosecuted unless bank account is jointly....
Maintaining the prosecution under Sec. 141 of N.I. Act requires the company to be arraigned as the accused.
Trustees can only be prosecuted under Section 138 of the Negotiable Instruments Act if there are specific averments of their involvement in the day-to-day affairs of the Trust.
An individual cannot be prosecuted under Section 138 of the NI Act if they did not issue the cheque drawn on their account. Liability regulations do not extend to directors not involved with the cheq....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
