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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
HARPREET SINGH BRAR
Kuljinder Singh – Appellant
Versus
Bhatana alloys pvt. Ltd. – Respondent
JUDGMENT :
Harpreet Singh Brar, J.
1. This common order shall dispose of all the abovementioned petitions as they arise from similar factual matrix. However, for the sake of brevity, the facts are taken from CRM-M-27027-2016.
2. The present petition has been preferred under Section 482 , Code of Criminal Procedure, 1973 (hereinafter 'Cr.P.C.') seeking quashing of complaint No.9117 dated 11.12.2014 under Sections 138 , 141 read with 142 of the Negotiable Instruments Act , 1881 (hereinafter 'NI Act') as well as summoning order dated 21.03.2015 (Annexure P-3) passed by the learned Judicial Magistrate Ist Class, Chandigarh.
3. Briefly, the facts, as alleged, are that petitioner, namely Kuljinder Singh and Ajit Singh are promoters and in charge of M/s Aakar India Developer Pvt. Ltd. The said company was in the business of iron and steel goods with the respondent. In order to settle the outstanding amount of Rs.17,04,157/-, a post dated cheque bearing no.161702 dated 15.04.2014 for Rs.14,00,000/- was issued in favour of the respondent. The said cheque was signed by the petitioner-Kuljinder Singh, being its Director/authorised signatory. On presentation for encashment, the same was dishonoure
A director's liability for dishonored cheques under the Negotiable Instruments Act is contingent upon their active management role at the time of issuance.
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....
The main legal point established in the judgment is the application of vicarious liability principles in determining the liability of officers of a company in respect of dishonour of a cheque.
Liability under Section 141 of the Negotiable Instruments Act depends on the role played by a person in the affairs of the company at the time of the offence, not just on designation.
Vicarious liability under Section 141 NI Act requires the accused person to be in charge and responsible for the conduct of the business of the accused company at the time of the offense. Execution o....
Specific averments are essential in a complaint to establish vicarious liability under Section 141 of the Negotiable Instruments Act; mere assertions are insufficient.
A director's liability under the N.I. Act is contingent on their status at the time of the cheque's issuance.
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