IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
M. K. Thakker, J.
Nenshi Healthcare Thro Bhanushali Kishorkumar Damjibhai – Applicant
Versus
State of Gujarat & Ors. – Respondents
R/Criminal Misc. Application (For Leave To Appeal) No. 2800 of 2024 In F/Criminal Appeal No. 30674 of 2023
Decided On : 23-04-2024
| Table of Content |
|---|
| 1. acquittal based on non-joinder of company (Para 1 , 2) |
| 2. arguments challenging trial court's acquittal (Para 3) |
| 3. necessity of addressing company as accused (Para 4 , 6) |
| 4. corporate liability under n.i. act section 141 (Para 5) |
| 5. dismissing application and refusing appeal (Para 7 , 8) |
ORDER :
1. This application is filed seeking leave to prefer an appeal by the applicant-original complainant against judgment and order dated 26.04.2023 passed by the learned Chief Judicial Magistrate, Kadi in Criminal Case No. 262 of 2020 whereby, the accused came to be acquitted for the offences punishable under section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as the “N.I.Act”).
2. It is the case of the complainant that complainant is doing business of pharmaceutical raw materials and pharmaceutical finished products and the accused is also connected with health care products therefore, on purchasing the health care products, the cheque was issued for the repayment of the product of Rs.23,41,335/-. On depositing the said cheque, it was dishonoured. Therefore, after following due procedure, private complaint came to be filed before the learned trial court.
2.1. On being summoned respondent-accused appeared and raised the defence that PDC cheques were misused by the complainant and false case is filed
2.2. After considering the arguments and evidence on record, the learned trial court has acquitted the respondent-accused on the ground that the company namely Nayasa Life Science Pvt. Ltd. was not joined as prime accused and therefore, the provisions under section 141 of the N.I. Act were not fulfilled and the complaint is not maintainable which is the subject matter of challenge before this Court.
3. Heard learned advocate Mr.Khambholja for the applicant/ appellant.
3.1. Learned advocate Mr.Khambholja submits that cause title of the complaint reflects that respondent-accused namely Hitendra C. Prajapati was joined in the capacity of authorized person of Nayasa Life Science Pvt. Ltd. and therefore, it was not required to join the company as prime accused. However, learned trial court has acquitted the respondent-accused without any cogent reason.
3.2. Learned advocate Mr.Khambholja submits that though neither the signature on the cheque was disputed by the respondent-accused nor the issuance of the cheque was disputed and even though presumption which is in favour of the complainant under section 188 and 139 of the N.I.Act was not rebutted, learned trial court has acquitted the respondent-accused without any cogent reasons.
3.3. Learned advocate Mr.Khambholja submits that learned trial court has discarded the material evidence on record and passed judgment and order of acquittal and therefore, leave as prayed for is required to be granted.
4. Considering the arguments advanced by the learned advocate Mr.Khambholja and examining the record and proceedings thoroughly, it transpires from the record that complaint is filed by the complainant alleging that cheque which was issued for repayment of debt was dishonoured. The cheque which is produced below Exh.16 appears to have been signed by Hitendra C. Prajapati and issued by Nayasa Life Science Pvt. Ltd. Thereafter, demand notice which was issued below Exh.19 also reflects that the said notice was issued to the respondent-accused namely Hitendra C. Prajapati as authorized person of Nayasa Life Science Pvt. Ltd. Thereafter, complaint came to be filed wherein, the respondent accused was joined as authorized person of Nayasa Life Science Pvt. Ltd.
5. The judgment rendered by the Hon’ble Apex Court in the case of Aneeta Hada Vs Godfather Travels and Tours Pvt. Ltd wherein, the Hon’ble Apex Court has held as under:
For prosecution under Section 141 of the Negotiable Instruments Act, the company must be joined as an accused; its absence renders the complaint non-maintainable.
Section 141 of N.I. Act deals with offences by companies.
The central legal point established in the judgment is that maintaining the prosecution under Section 141 of the N.I. Act requires the company to be arraigned as an accused, and without fulfilling th....
Point of Law : Section 141 of N.I. Act provides that for purpose of this Section, "company" means anybody corporate and includes a firm or other association of Individuals; and "director", in relatio....
Dishonour of cheque – Company is a juristic person and Company can have criminal liability—In case of commission of offence by company, express condition of company being joined is imperative to attr....
Maintaining prosecution under section 138 of the NI Act requires arraigning the company as an accused, and the vicarious liability of individuals associated with the company is contingent upon the co....
The central legal point established in the judgment is the requirement to arraign a company as an accused in a complaint under Section 138 of the Negotiable Instruments Act, as highlighted by the pro....
(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....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.