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SANDEEP MOUDGIL
Lokesh Kasat – Appellant
Versus
Sabsons Fastners P. Ltd. – Respondent
JUDGMENT
Sandeep Moudgil, J.
This order shall dispose of CRM-M-28353-2022, CRM-M- 28802-2022, CRM-M-28808-2022, CRM-M-28876-2022, CRM-M-28900- 2022, CRM-M-28916-2022, CRM-M-28931-2022 as common issues are involved. For the purpose of order, CRM-M-28353-2022 is treated as the lead case.
2. The petitioners seek quashing of the criminal complaint No.NACT/642 of 2020 dated 17.08.2020 pending in the Court of JMIC, Panchkula as well as for quashing of the summoning order dated 18.03.2021 (Annexure P2) whereby the petitioners have been summoned to face trial for offence under section 138 of Negotiable Instruments Act, along with all subsequent proceedings.
3. Learned counsel for the petitioners submits that in total 7 complaints under section 138 of the Negotiable Instruments Act (in short, 'the NI Act') were filed by the respondent-company against the petitioner with similar allegations relating to different cheques which were allegedly dishonoured.
4. It is further averred that the petitioner is in the business of manufacturing of auto industry parts including lighting, headlamps etc. The petitioners were appointed as independent directors and were not related to monetary affairs of the c
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 complaint under Section 138 must contain specific averments to establish vicarious liability; mere title or position is insufficient for liability. Absence of allegations against an accused leads t....
For vicarious liability under Section 141 of the Negotiable Instruments Act, specific averments regarding a director's involvement in company affairs are essential; mere directorship is insufficient.
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.
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....
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.
Dishonour of cheque – Offence by company – It may not be proper to split while reading complaint so as to come to a conclusion that allegations as a whole are not sufficient to fulfil requirement of ....
The company must be summoned as an accused in Section 138 N.I. Act cases for proceedings against its Directors to be valid.
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