Back
N. SATHISH KUMAR
R. Meharaj – Appellant
Versus
Selvakumar Spinners, Rep. by Executive Director P. Praveen, Erode – Respondent
JUDGMENT
(Prayer: Criminal Original Petition filed under Section 482 of Cr.P.C., seeking to call for the records in S.T.C.No.2 of 2022 on the file of the Learned Judicial Magistrate, FTC-II, Erode and to quash the same.
Prayer: Criminal Original Petition filed under Section 482 of Cr.P.C., seeking to call for the records in S.T.C.No.2 of 2022 on the file of the learned Judicial Magistrate, FTC-II, Erode and to quash the same.)
Common Order
1. The petitioners, who are arrayed as A1 to A3, have filed the above criminal original petitions seeking to quash the proceedings in S.T.C.No.2 of 2022, on the file of the learned Judicial Magistrate, FTC-II, Erode, for the offence punishable under Sections 138, 141 and 142 of the Negotiable Instruments Act, 1881 (hereinafter referred to as "the N.I. Act").
2. Since the issues involved in both the criminal original petitions are one and the same and between the same parties, both the Criminal Original Petitions are heard together and disposed of by means of this Common Order.
3. The brief facts leading to the filing of these quash petitions, are as follows:
(i) The petitioners in Crl.O.P.No.14301 of 2022 are the accused 1 and 2 and the petition
The necessity of specific averments to fasten vicarious liability on a director under Section 141 of the N.I. Act, and the inability to quash the prosecution based on lack of specific averments in th....
The court emphasized that N.I.Act proceedings cannot be used as a means to recover outstanding amounts when no other recovery proceedings have been initiated, and that the offer made by the petitione....
An individual in a company cannot be vicariously liable for criminal offenses under the NI Act unless they are responsible for the company's conduct at the time of the offense.
Liability of directors under Section 138 of the Negotiable Instruments Act depends on their active role and responsibility for the company's business conduct, not merely their directorship.
The main legal point established in the judgment is the necessity of specific averments in the complaint to fulfill the requirements of Section 141 of the Negotiable Instruments Act and the vicarious....
The court quashed proceedings against a former director for cheque dishonor, ruling that allegations did not establish an offense post-resignation, emphasizing the need to prevent abuse of legal proc....
Specific averments are necessary to establish the liability of a Director under Section 141 of the Negotiable Instruments Act; mere designation is insufficient.
Liability under Section 141 of the NI Act requires being in charge and responsible for the company's affairs. The court's decision was influenced by the interpretation of this legal provision.
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
