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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Jasjit Singh Bedi, J.
Bhupinder Kaur – Appellant
Versus
M/s Sohan Lal Mohan Lal & Anr. – Respondents
CRM-M No. 26810 of 2021 (O&M)
Decided On : 26-09-2023
Cheque Dishonour - Quashing of Criminal Complaint - Section 138 of the NI Act - [138, 141] - The court quashed the complaint, summoning order, and subsequent proceedings against the petitioner alone, as she had resigned from the directorship of the company before the cheque was issued, and no liability could be affixed upon her. The proceedings were directed to continue against the other co-accused including the company.
Fact of the Case:
The complainant firm supplied paddy/basmati on credit to the accused firm. A cheque issued by the accused firm was dishonoured, leading to a complaint under Section 138 of the NI Act. The petitioner, a former director of the accused firm, sought quashing of the complaint, summoning order, and subsequent proceedings, contending that she had resigned from her post before the cheque was issued and dishonoured.
Finding of the Court:
The court found that the petitioner had resigned from the directorship of the company before the cheque was issued, and no liability could be affixed upon her. The proceedings were quashed against the petitioner alone, but directed to continue against the other co-accused including the company. The Trial Court was directed to conclude the trial expeditiously.
Issues: The main issue was whether the petitioner, as a former director of the accused firm, could be held liable for the dishonoured cheque issued after her resignation.
Ratio Decidendi: The court held that as the petitioner had resigned from the directorship of the company before the cheque was issued, no liability could be affixed upon her. The court also emphasized the importance of unimpeachable evidence in establishing liability and the need for specific averments in the complaint to make the accused vicariously liable.
Final Decision: The court quashed the complaint, summoning order, and subsequent proceedings against the petitioner alone, but directed the proceedings to continue against the other co-accused including the company. The Trial Court was directed to conclude the trial expeditiously.
JUDGMENT
Jasjit Singh Bedi, J. -
CRM-40469-2023
The present application has been filed by the applicant-petitioner for placing on record the Annual Report of the company dated 30.09.2015 as Annexure A-1.
For the reasons mentioned in the application, the same is allowed and the Annual Report of the company dated 30.09.2015 as Annexure A-1 is taken on record.
CRM-M-26810-2021
1. The prayer in the present petition under Section 482 Cr.P.C. is for quashing of Criminal Complaint No.NACT/845/2018 dated 16.07.2018 (Annexure P-1), the summoning order dated 15.09.2018 under Section 138 of the NI Act (Annexure P-3), the order dated 01.03.2021 (Annexure P-4) whereby the application along with the revision petition filed by the petitioner stands dismissed and subsequent proceedings arising therefrom.
2. The brief facts of the case as emanating from the pleadings are that the complainant firm (M/s Sohan Lal Mohan Lal, Commission Agents, Talwandi Bhai Tehsiland District Ferozpur through its partner Sh.Vijay Kumar son of Mohan Lal) had been supplying paddy/basmati on credit to the accused firm of which accused No.1 (Bhupinder Kaur, Director of Golden Agrarian Pvt. Ltd. Sadik Road, Faridkot, Tehsil and District Faridkot) and accused No.2 (Sukhveer Singh Samra, Director of Golden Agrarian Pvt. Ltd. Sadik Road, Faridkot, Tehsil and District Faridkot) were the Directors and accused No.5 (Harinder Singh Samra, Authorised Signatory of Golden Agrarian Pvt. Ltd. Sadik Road, Faridkot, Tehsil and District Faridkot) was an authorised signatory in the banks of the accused company. Over a period of time, an amount of Rs.58,08,350.95/- became due on the part of the accused Firm. In partial discharge of their liability, the accused issued a Cheque No.379540 dated 28.02.2018 for an amount of Rs.3,00,000/-favouring the Complainant firm from their Companys Account No.0978002100359107 at the Punjab National Bank, Main Bazar Faridkot with the assurance that the said cheque would be honoured. However, the cheque in question was dishonoured with the remarks Funds Insufficient. A legal notice was sent to the accused making a demand of the payment of the cheque amount. However, no reply was furnished to the said legal notice.
3. Thereafter, the complaint under Section 138 read with Section 142 of the Banking Public Financial Institutions and Negotiable Instruments Act, 1881 came to be instituted at the instance of the complainant No.1/respondent No.1-firm M/s Sohan Lal Mohan Lal, Commission Agents, Talwandi through its partner Vijay Kumar (complainant No.2/respondent No.2) against Bhupinder Kaur, Director of Golden Agrarian Pvt. Ltd. (petitioner) Sadik Road, Faridkot, Tehsil and District Faridkot, Sukhveer Singh Samra, Director of Golden Agrarian Pvt. Ltd. Sadik Road, Faridkot, Tehsil and District Faridkot, Golden Agrarian Pvt. Ltd. Sadik Road, Faridkot, Tehsil and District Faridkot through its Director Bhupinder Kaur, Golden Agrarian Pvt. Ltd. Sadik Road, Faridkot, Tehsil and District Faridkot through its Director Sukhveer Singh Samra and Harinder Singh Samra, Authorised Signatory of Golden Agrarian Pvt. Ltd. Sadik Road, Faridkot, Tehsil and District Faridkot. The copy of the complaint dated 16.07.2018 is attached as Annexure P-1 to the petition.
4. Based on the aforementioned complaint dated 16.07.2018 (Annexure P-1), the summoning order was passed on 15.09.2018 under Section 138 of the NI Act. A copy of the said order is attached as Annexure P3 to the petition.
5. Against the aforementioned summoning order, a revision petition was preferred which came to be dismissed. A copy of the order dated 01.03.2021 passed by the Additional Sessions Judge, Ferozepur is attached as Annexure P-4 to the petition.
6. The instant petition has been preferred against the complaint dated 16.07.2018 (Annexure P-1), the summoning order dated 15.09.2018 (Annexure P-3) and the revision petition dated 01.03.2021 (Annexure P-4).
7. The learned counsel for the petitioner contends that the petitioner
A director who resigns before the cheque issuance cannot be held liable under Sections 138 and 141 of the NI Act, evidenced by credible documents demonstrating resignation.
Directors who have resigned cannot be held liable for cheques issued after their resignation unless specific allegations of responsibility are made.
Sufficient averments in a complaint against a director fulfill requirements of Section 141 of the NI Act for vicarious liability. Failure to respond to statutory notices under Section 138 infers liab....
Directors who had resigned prior to the issuance of a dishonored cheque cannot be held liable under Sections 138 and 141 of the Negotiable Instruments Act, and specific averments are required to esta....
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