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G. JAYACHANDRAN
S. Ramaiah – Appellant
Versus
ICICI Bank Ltd, Chennai – Respondent
JUDGMENT
(Prayer: Criminal Original Petition has been filed under Section 482 of Criminal Procedure Code to call for the records and quash the complaint filed under Section 138 of Negotiable Instruments Act, 1881 in C.C.No.78/2019, pending on the file of the Fast Track Court Magistrate Level, Ambattur.)
1. This Criminal Original Petition is filed to quash the private complaint initiated under Section 138 of Negotiable Instruments Act.
2. The specific ground raised in this petition is that the petitioners, who were arrayed as A3 to A5, are not concerned with the day to day affairs of the Trust and by resolution of the Trust dated 13.12.1991 and 21.01.2011. The Managing Trustee of the “Tamil Thai Charitable Trust”, Dr.S.Ramaiah was authorized to deal with the finance of the Trust properties, particularly regarding the loan availed with ICICI bank. While so, the cheque drawn by the Palanivelammal, one of the Trustees for a sum of Rs.1,70,00,000/- was bounced for “Insufficient Funds”. Instead of prosecuting the Trust and the signatory of the cheque, the complainant bank has arrayed the other non executive Trustees also as accused and therefore, the case against them has to be quashed.
3 Th
Active participation in the affairs of a trust, including authorization of a trustee to interact with a bank for a loan, can make non-executive trustees liable under Section 141 of the Negotiable Ins....
Trustees can only be prosecuted under Section 138 of the Negotiable Instruments Act if there are specific averments of their involvement in the day-to-day affairs of the Trust.
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 legal provisions of the Negotiable Instruments Act, 1881 and the Indian Penal Code were interpreted to emphasize the need for detailed investigation in cases involving multiple concerns operating....
Existence of legally enforceable debt under Section 138 NI Act is a trial issue, not for quashing proceedings.
Omission of specific phrases in a complaint does not nullify proceedings under the Negotiable Instruments Act if the essence of responsibility is conveyed.
A disputed defense regarding the misuse of a cheque in a Section 138 NI Act case constitutes a factual dispute requiring evidence and is not a valid ground for quashing criminal proceedings under S.5....
Only the drawer of the cheque can be made an accused under Section 138 of the Negotiable Instruments Act, with the exception of directors/partners being vicariously liable for the debt/liability of t....
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