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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
HARPREET SINGH BRAR
Lalit Mohan Mehta – Appellant
Versus
State of Punjab – Respondent
JUDGMENT :
Harpreet Singh Brar J. (Oral)
1. This common order of mine shall dispose of the above-mentioned petitions as they arise out of the same factual matrix and common question of law is involved. For the sake of brevity, the facts are taken from CRM-M-18840-2020.
The petitioners have approached this Court by filing present petition under Section 482 of the Code of Criminal Procedure(hereinafter 'Cr.P.C.') seeking quashing of summoning order dated 25.11.2019 (Annexure P-4) passed by learned Judicial Magistrate 1st Class, Ludhiana along with the complaint bearing no. COMA/30705 dated 23.11.2019 titled as 'Vivek Gupta v. M/s Housing Development Infrastructure Limited and others' filed under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter 'NI Act')
FACTUAL BACKGROUND
2. The complainant-respondent Vivek Gupta booked Flat No. 1807, D Wing, 18th floor in Majestic Towers, Mumbai vide agreement to sell dated 14.05.2014 with the accused company-M/s Housing Development and Infrastructure Limited (hereinafter 'HDIL'). However, HDIL failed to give possession of the said flat and a settlement was arrived at on 24.07.2019 whereby, the accused agreed to return the principal amoun
Non-executive directors cannot be held liable under the Negotiable Instruments Act without specific allegations of their involvement; general averments are insufficient to summon them for proceeding.
The company must be summoned as an accused in Section 138 N.I. Act cases for proceedings against its Directors to be valid.
The main legal point established in the judgment is that the role of each accused in the commission of the offence can only be determined during the trial and cannot be examined in detail by the cour....
A director's personal endorsement of a cheque can implicate a company in liability under the NI Act, reinforcing the scrutiny necessary in summoning orders.
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 ....
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