Directors can be absolved from criminal liability under the Negotiable Instruments Act if they have resigned from the directorship before the issuance of a dishonored cheque and are not signatories to the cheque.

ORDER :

(Prayer: The Criminal Original Petition is filed under Section 482 of the Code of Criminal Procedure to call for the records culminating in the criminal proceedings pending against the Petitioner in C.C.No.1333 of 2015 on the file of the learned VIII Metropolitan Magistrate, George Town, Chennai and quash the same.)

The Criminal Original Petition has been filed to call for the records culminating in the criminal proceedings pending against the Petitioner in C.C.No.1333 of 2015 on the file of the learned VIII Metropolitan Magistrate, George Town, Chennai and quash the same.

2. The Petitioner herein is the fourth accused in C.C.No.1333 of 2015 on the file of the learned VIII Metropolitan Magistrate, George Town, Chennai. This Petition for quashing C.C.No.1333 of 2015 has been filed on the ground that on the date of issuance of cheque, the Petitioner was not a Director of the Company and was not a signatory to the cheque.

3. The Respondent herein filed a private complaint under Section 200 of Cr.P.C., for the alleged offences under Sections 138 & 142 of Negotiable Instruments Act, on the basis of dishonoured cheque issued on 10.03.2015 and 10.04.2015 and the same was taken on file by the learned VIII Metropolitan Magistrate, George Town, Chennai. Summons also issued to the 4th accused/Petitioner herein. This Petition was filed for quashment of above said complaint in respect of the 4th accused/Petitioner herein alone.

4. The main contention raised by the learned counsel for the Petitioner/4th accused is that he has resigned from the Directorship as early as on 13.06.2014 and filed Form 11 & 12 issued by the Registrar of Companies, regarding resignation of the Petitioner from the first accused company. Hence, as the Petitioner is not signatory to cheque nor Director of the A1 company on the date of cheque in issue, he cannot be mulcted with any criminal liability.

5. In view of the above said factual position, I am inclined to quash C.C.No.1333 of 2015, on the file of the learned VIII Metropolitan Magistrate, George Town, Chennai as against the Petitioner herein alone and accordingly, the Criminal Original Petition is allowed. Consequently, connected Miscellaneous Petition is closed.