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PANKAJ JAIN
Shakti Vig – Appellant
Versus
Raj Kumar Sanjeev Kumar – Respondent
JUDGMENT
Mr. Pankaj Jain, J.
This bunch of petitions filed under Section 482 Cr.P.C. are being taken up together for adjudication as they involve identical question and are at the behest of the same petitioner.
2. Petitioner served as Director of respondent No.2/Company i.e. M/s Shiva Shakti Grains (India) Pvt. Ltd. In all the complaints filed against the said company which are subject matter of these petitions, the petitioner has been summoned to face trial for offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the N.I. Act') being Director of the said company.
3. The issue raised in all these petitions by the petitioner is that he resigned as Director of the company on 2nd of January, 2012 and the cheques pertain to the year 2017 and thus he is not liable for offence punishable under Section 138 of the N.I. Act being Director of the company by invoking Section 141 of the N.I. Act.
4. The following table narrates the dates of the cheque in each of the petition:
| S. No. | Case No. | Date of Resignation | Date of cheque issuance |
| 1 | CRM-M-8340-2018 | 02.01.2012 | 18.08.2017 |
| 2 | CRM-M-8511-2018 | 02.01.2012 | 17.08.2017 |
A Director who resigns before the issuance of cheques cannot be held liable under Section 141 of the Negotiable Instruments Act, requiring necessary averments in complaints for vicarious liability.
Directors who have resigned cannot be held liable for cheques issued after their resignation unless specific allegations of responsibility are made.
Specific averments regarding a director's responsibility for a company's conduct are essential for vicarious liability under Section 141 of the Negotiable Instruments Act.
The court quashed proceedings against a former director for cheque dishonor, ruling that allegations did not establish an offense post-resignation, emphasizing the need to prevent abuse of legal proc....
Directors can only be held vicariously liable under Section 141 of the Negotiable Instruments Act if specific averments are made in the complaint regarding their responsibility for the company's cond....
A director cannot be held vicariously liable for a company's actions after resignation unless specific allegations of involvement are made in the complaint.
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