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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
N.S.SHEKHAWAT
Gaurav Gupta – Appellant
Versus
Sumita Jain – Respondent
JUDGMENT :
N.S.Shekhawat, J. (Oral) -
This order shall dispose off above mentioned 11 petitions, i.e., CRM M-17311-2021, CRM M-39878 of 2021, CRM M-39975 of 2021, CRM M-50868 of 2021, CRM M-40044 of 2021, CRM M-40086 of 2021, CRM M-50866 of 2021, CRM M-6706-2022, CRM M-6725-2022 and CRM M-6696-2022 titled as "Gaurav Gupta Vs. Sumita Jain", and CRM M-21122-2023 titled as "Gaurav Gupta Vs. M/s Mahabir Parsad Lakmi Chand", whereby, the petitioners have prayed for quashing of the complaints filed under Section 138 of the Negotiable Instruments Act 1881 as well as summoning orders passed by the Court of Sub Divisional Judicial Magistrate, Ganaur, Sonepat and all subsequent proceedings arising therefrom. Since, the litigation in all the complaints is between the same parties and common questions of law and facts are involved in all the petitions; consequently, all the petitions are taken up together and are being disposed off simultaneously by way of common judgment. For the facility of reference, the facts have been culled out from the petition, i.e., CRM M-6696 of 2022 titled as "Gaurav Gupta Vs. Sumita Jain".
2. A complaint under Section 138 read with Section 142 of the Negotiable Instru
The main legal point established in the judgment is that the liability of a company and its director under Section 138 of the Negotiable Instruments Act, 1881 is contingent on the relationship betwee....
Vicarious liability under Section 141 of the N.I. Act arises only when the company or firm commits the offense as the primary offender, and the accused must be the drawer of the cheque to be held lia....
A person who is not a signatory to the cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for the offence of dishonour of cheque for insufficiency of funds.
For maintaining a prosecution under Section 138 of the Negotiable Instruments Act, arraigning of the company as an accused is imperative. The person in charge of the company cannot be held liable if ....
Directors of a company can be held vicariously liable under Section 141 of the Negotiable Instruments Act if they were in charge of the company's affairs at the time of the offense.
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