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IN THE HIGH COURT OF KERALA AT ERNAKULAM
G.GIRISH
Kaduthuruthy Co-Operative Rubber Marketing and Processing Society Limited – Appellant
Versus
Rema J. Momaiya – Respondent
ORDER :
1. The petitioners are the accused Nos. 2 & 3 in C.C. No.1103/2016 on the files of the Judicial First Class Magistrate Court, Mattancherry, a case relating to the commission of offence under Section 138 the Negotiable Instruments Act, 1881 (in short ‘NI Act’). They are arraigned in the complaint in their capacities as the Managing Director and Authorised Signatory respectively, of the first accused Co-opearative Society by name ‘The Kaduthuruthy Co-operative Rubber Marketing and Processing Society Limited No.1397’.
2. The complaint was about the dishonour of a cheque for Rs.1,63,800/- issued to the first respondent by the petitioners for and on behalf of the first accused Society towards payment of the amount due to the proprietary firm represented by the first respondent. Originally the complaint was filed before the Judicial First Class Magistrate Court, Vaikom. Later on it was transferred to the Judicial First Class Magistrate Court, Mattancherry, on jurisdictional grounds.
3. In the present petition, the petitioners would contend that they are not liable to be prosecuted for the dishonour of the cheque issued by the first accused Society, since the dishonour happened due t
To establish liability under Section 138 of the NI Act, the complaint must specifically allege that the accused were in charge of and responsible for the company's conduct at the time of the offence.
Maintaining the prosecution under Sec. 141 of N.I. Act requires the company to be arraigned as the accused.
Specific averments are essential in a complaint to establish vicarious liability under Section 141 of the Negotiable Instruments Act; mere assertions are insufficient.
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....
A complaint under Section 138 must contain specific averments to establish vicarious liability; mere title or position is insufficient for liability. Absence of allegations against an accused leads t....
Independent Directors - In case of Director or an officer of company, who signed cheque on behalf of company, there is no need to make a specific averment that, he was in charge of and was responsibl....
Prosecution under Section 138 of the Negotiable Instruments Act requires the company to be arraigned as an accused to impose vicarious liability on its officers.
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