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SANDEEP MOUDGIL
Lokesh Kasat – Appellant
Versus
Sabsons Fastners P. Ltd. – Respondent
| Table of Content |
|---|
| 1. petitioners seek quashing of complaints under ni act. (Para 1 , 2) |
| 2. petitioners claim lack of connection to cheques. (Para 3 , 4 , 5) |
| 3. cited cases emphasize liability depends on cheque signatory. (Para 6 , 10) |
| 4. court supports trial court's summoning based on responsibility. (Para 7 , 8 , 9 , 11) |
| 5. court clarifies no need for detailed reasons in summons. (Para 12 , 14 , 15) |
| 6. directors responsible under ni act for cheque dishonour. (Para 16) |
| 7. petitions dismissed; trial court's order upheld. (Para 17 , 18) |
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 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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