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SANDEEP N. BHATT
SANGEETHA GOPALKRISHNAN NAIR – Appellant
Versus
STATE OF GUJARAT – Respondent
| Table of Content |
|---|
| 1. filing of application for quashing fir under ni act (Para 1 , 2) |
| 2. arguments presented regarding additional directors' liability. (Para 3) |
| 3. arguments on the liability of additional directors for dishonour of cheque (Para 4 , 5 , 6 , 7) |
| 4. court's observations on sufficiency of allegations and responsibilities of directors. (Para 8 , 14) |
| 5. clarification of legal provisions related to dishonor of cheques. (Para 9) |
| 6. court's interpretation of vicarious liability under ni act (Para 10 , 11 , 12 , 13) |
| 7. quashing of application due to lack of sufficient legal grounds (Para 15) |
| 8. final order quashing the process against applicants (Para 16) |
JUDGMENT :
SANDEEP N. BHATT, J.
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 process issued by the learned Metropolitan Magistrate (NI Act), Court No. 36 at Ahmedabad in Criminal Case No. 6635 of 2019 qua the present applicants filed under the provisions of the Negotiable Instruments Act (‘the NI Act’ for short).
2. The brief facts leading to filing of this application are such the impugned complaint is filed by the respondent no. 2 allegi
Additional directors are not vicariously liable under the Negotiable Instruments Act without specific allegations of their direct involvement in the company's conduct, as general claims of responsibi....
(1) Dishonour of cheque – Impleadment of all Directors of Accused Company on the basis of a statement that they are in charge of and responsible for conduct of business of company, without anything m....
Non-Executive Directors cannot be held liable under Section 141 of the Negotiable Instruments Act without specific averments demonstrating their involvement in the company's day-to-day affairs.
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.
Specific averments are necessary to establish the liability of a Director under Section 141 of the Negotiable Instruments Act; mere designation is insufficient.
Directors can only be held vicariously liable under Section 141 of the Negotiable Instruments Act if specific averments are made in the complaint regarding their responsibility for the company's cond....
A director who has resigned prior to the issuance of a cheque cannot be held vicariously liable for its dishonor under Section 138 of the N.I. Act.
Dishonour of cheque – Contents of notice, reply given by noticee and contents of complaint would form an important part of arraigning accused into proceedings under Section 138 of NI Act.
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