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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.C.DOSHI
Dharmesh Prafulchandra Trivedi – Appellant
Versus
Axis Bank Ltd Through Ashish Vijay Vergiya – Respondent
| Table of Content |
|---|
| 1. application to quash a criminal case. (Para 1 , 3) |
| 2. arguments regarding maintainability of the case. (Para 5 , 6) |
| 3. examination of legal responsibilities of directors. (Para 8 , 10 , 12) |
| 4. insufficient averments in the complaint. (Para 14 , 16 , 18) |
| 5. conclusion on legal requirements for vicarious liability. (Para 20 , 22 , 24) |
| 6. outcome of the petition. (Para 25 , 26) |
ORDER :
J. C. DOSHI, J
1. By way of this application under Section 482 of the Code of Criminal Procedure, 1973 (hereinafter referred to as ”the Code”), the petitioner has prayed to quash and set aside Criminal Case No.5606 of 2016 qua the petitioner, pending before the Ld. Chief Judicial Magistrate, Rajkot.
3. Brief facts of the case are as under:-
3.1 Axis Bank through power of attorney filed private complaint before learned CJM, Rajkot under section 138 of Negotiable Instrument Act read with section 141 of NI Act, which came to be registered as Criminal Case No.5606 of 2016 against Champion Agro. Ltd. and its Directors. The petitioner is arraigned as accused no.4 in the private complaint. Learned CJM, after recording verification issued process against Champion Agro. Ltd. and its Directors. Case of
A director cannot be held vicariously liable under the Negotiable Instruments Act without specific allegations demonstrating their active responsibility in the company's operations.
Specific averments regarding a director's responsibility for a company's conduct are essential for vicarious liability under Section 141 of the Negotiable Instruments Act.
Specific averments regarding a director's role and responsibility are essential for vicarious liability under Section 141 of the N.I. Act; mere designation is insufficient.
A Company Secretary, who is not involved in the day-to-day affairs of the company and is not responsible for the conduct of its business, cannot be held criminally liable for a dishonored cheque issu....
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....
Point of Law : Where there is not even an averment against the Managing Director or joint Managing Director of the Company therein. [Para 11]
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....
Specific averments are necessary to establish the liability of a Director under Section 141 of the Negotiable Instruments Act; mere designation is insufficient.
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