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IN THE HIGH COURT OF ORISSA AT CUTTACK
SANJEEB K.PANIGRAHI
Nigam Institute of Engineering and Technology – Appellant
Versus
Sadhu Charan Palei – Respondent
| Table of Content |
|---|
| 1. judicial procedure under section 482 and facts of the case (Para 1 , 2) |
| 2. petitioner's challenge to cognizance (Para 3 , 4) |
| 3. court's analysis on cheque liability (Para 5 , 6 , 8) |
| 4. essential requirements under section 138 (Para 7 , 9 , 10 , 12) |
| 5. vicarious liability principles (Para 11 , 14 , 15 , 17 , 18) |
| 6. quashing of proceedings due to non-impleadment (Para 21 , 23) |
| 7. legal impossibility of individual liability (Para 22 , 24) |
| 8. conclusion and order of quashing (Para 25 , 26 , 27) |
JUDGMENT :
Sanjeeb K. Panigrahi, J.
1. The same Petitioner in both the CRLMCs has instituted the present Criminal Miscellaneous Case under Section 482 of the Code of Criminal Procedure, 1973/ Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023, invoking the inherent jurisdiction of this Court. The present application has been filed challenging the order of cognizance dated 06.12.2025 passed by the learned Nayadhikari, Gram Nayalaya, Puri in ICC Case No. 16/2025 and 17/2025, whereby cognizance has been taken for the alleged offences under Section 138 of Negotiable Instrument Act.
I. FACTUAL MATRIX OF THE CASE
2. The brief facts of the case are as follows:
(i) The case of the Petitione
Liability under Section 138 of the Negotiable Instruments Act primarily rests on the drawer of the cheque, which in this case is the institution, not the individual signatory, thus prosecution agains....
Vicarious liability under Section 141 of the N.I. Act arises only when the company or firm commits the offense as the primary offender, and the accused must be the drawer of the cheque to be held lia....
(1) Dishonour of cheque – Offence by company – It is drawer Company which must be first held to be principal offender under Section 138 of NI Act before culpability can be extended, through a deeming....
Authorized signatory of company cheque from company account is not 'drawer' under Section 138 NI Act; company is drawer and must be impleaded with notice served; non-impleadment fatal, proceedings qu....
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 person who is not a signatory to the cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for the offence of dishonour of cheque for insufficiency of funds.
For maintaining a prosecution under Section 138 of the Negotiable Instruments Act, arraigning of the company as an accused is imperative. The person in charge of the company cannot be held liable if ....
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.
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