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KULDEEP TIWARI
Jaskirat Singh – Appellant
Versus
AB Motions Pvt. Ltd. – Respondent
JUDGMENT
Kuldeep Tiwari, J. (Oral)
Both these petitions are taken up together for disposal by a common order, as the law point(s) involved therein, is similar in nature. For brevity, the facts are being extracted from CRM-M-33437 of 2018.
2. The respondent-company, which is the owner of M/s The Wave (Westend) Malls, Ferozepur Road, Ludhiana, leases out space(s) in the said Mall for hoardings to different parties.
3. The respondent-company, provided some space in its Mall to one M/s Ultimate Signages for consideration on credit basis. To discharge its liability, M/s Ultimate Signages issued a cheque bearing No. 697305 dated 7.12.2016 amounting to Rs.2,50,000/-, drawn at erstwhile State Bank of Patiala (now State Bank of India), Model Town, Ludhiana, however, upon its being presented for encashment, it was dishonoured and returned with the remarks "Funds Insufficient" vide memo dated 9.12.2016. Hence, the present complaint (Annexure P-1) under section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the NI Act') has been filed against the petitioner, being proprietor of M/s Ultimate Signages.
4. Consequent upon filing of the present complaint (Annexure P-1), th
A proprietor of a proprietary concern cannot be prosecuted under Section 141 of the Negotiable Instruments Act if they are not the authorized signatory or proprietor of the firm.
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 ....
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....
Vicarious liability of company directors under Section 141 of the NI Act is established if directors were in charge of the business, regardless of the signatory's involvement and claims of internal f....
A sole proprietorship cannot be prosecuted under Section 141 of the N.I. Act unless the proprietor is named in the complaint; the complaint was also quashed for being premature.
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