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MANJARI NEHRU KAUL
Veenu Rana – Appellant
Versus
Surindra Milk Chilling Centre Pvt. Ltd. – Respondent
| Table of Content |
|---|
| 1. petitioner seeks to quash a complaint under ni act. (Para 1 , 2) |
| 2. arguments on director's liability under ni act. (Para 3 , 4) |
| 3. court analyzes the requirement for liability under ni act. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16) |
| 4. criminal proceedings against petitioner quashed. (Para 17 , 18) |
JUDGMENT
Manjari Nehru Kaul, J.
The petitioner-accused (hereinafter referred to as 'accused') has invoked the inherent jurisdiction of this Court under section 482 of the Cr.P.C., 1973 for quashing of Complaint No.COMA/1126/2022 dated 11.04.2022 titled as 'Surindra Milk Chilling Centre v. Rana Milk Food' under section 138 of the Negotiable Instruments Act, 1881 (for short, 'the NI Act'), pending in the Court of learned Judicial Magistrate 1st Class, Bathinda along with all consequential proceedings arising therefrom, including the summoning order dated 11.04.2022.
2. The brief facts of the complainant company may be noticed as thus.
The respondent-complainant company (hereinafter referred to as 'complainant') was engaged in the manufacture of desi ghee and other milk products at its own manufacturing units. The accused placed an order with the complainant
Vicarious liability under the Negotiable Instruments Act requires proof of a director's active involvement and responsibility in the company's operations, not merely their title.
Merely holding the designation of director does not establish liability under the Negotiable Instruments Act; specific allegations of involvement and responsibility in the company's affairs at the ti....
Non-Executive Directors cannot be held liable under Section 141 of the Negotiable Instruments Act without specific averments demonstrating their involvement in the company's day-to-day affairs.
Liability under Section 141 of NI Act depends on the role in the conduct of the company's affairs, not just the designation, and the burden of proof lies on the accused to establish lack of knowledge....
Vicarious liability under Section 141 of the Negotiable Instruments Act requires specific allegations showing a person's responsibility for conduct of a company's affairs; mere involvement is insuffi....
(1) Dishonour of cheque – Impleadment of all Directors of Accused Company on the basis of a statement that they are in charge of and responsible for conduct of business of company, without anything m....
Specific averments regarding a director's role and responsibility are essential for vicarious liability under Section 141 of the N.I. Act; mere designation is insufficient.
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