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JASJIT SINGH BEDI
Swati Dua – Appellant
Versus
Chhabra Yarns – Respondent
| Table of Content |
|---|
| 1. factual background of the complaint and parties involved. (Para 1 , 2 , 3 , 4) |
| 2. arguments of the petitioner and the complainant. (Para 5 , 6) |
| 3. analysis of legal standards under section 138 ni act. (Para 8) |
| 4. judicial precedents clarifying liability under ni act. (Para 9 , 10 , 11 , 12) |
| 5. conclusion quashing the complaint against petitioner. (Para 14) |
JUDGMENT
Jasjit Singh Bedi, J. (Oral)
The prayer in the present petition under Section 482 Cr.P.C. is for quashing of the criminal complaint bearing case CIS No.NACT-2896 of 2018 dated 13.09.2018 titled as M/s Chhabra Yarns v. M/s Ashish Handloom Industries and others (Annexure P-1), summoning order dated 13.09.2018 (Annexure P-2), the order dated 20.08.2022 (Annexure P-4) passed by the Judicial Magistrate Ist Class, Panipat and all the subsequent proceedings arising therefrom.
2. The brief facts of the case are that the respondent filed a criminal complaint under section 138 of the Negotiable Instruments Act against M/s Ashish Handloom Industries, its proprietor Ashish Dua and the present petitioner-Swati Dua who was stated to be the Chief Executive Officer of the said concern. As per the allegations three cheques
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.
The main legal point established in the judgment is that the liability of a company and its director under Section 138 of the Negotiable Instruments Act, 1881 is contingent on the relationship betwee....
Prosecution under Section 138 of the N.I. Act is not maintainable against signatories of a cheque unless the firm, as the drawer, is also arraigned as an accused.
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 ....
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....
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