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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
MANJARI NEHRU KAUL
Rahul Sood – Appellant
Versus
State Of Haryana – Respondent
JUDGMENT :
Manjari Nehru Kaul, J. (Oral)
Since these petitions arise from the same set of allegations and involve the same accused, and raise identical questions of law, they are being disposed of by this common order.
2. The instant petition has been filed by the petitioner under Section 482 Cr.P.C. seeking quashing of the complaints filed under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the Act') as well as the summoning orders and all consequential proceedings, including the order declaring him a 'Proclaimed Offender'.
3. The primary contention of the petitioner is that he was merely an Independent, Non-Executive Director of M/s Amira Foods Private Limited (hereinafter referred to as 'the company') and had no role in the day-to-day functioning or financial affairs of the company.
4. It has been contended by the learned counsel for the petitioner that the petitioner was initially engaged by the company in his professional capacity for legal advisory services, since he is an Advocate by profession, and was subsequently appointed as an Independent Director on 30.09.2011. However, the petitioner tendered his resignation on 05.10
Mere designation as a director does not establish liability under Section 138 NI Act; specific allegations of involvement are necessary for vicarious liability.
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.
Non-executive directors cannot be held vicariously liable under Section 141 of the NI Act without specific allegations of their involvement in the company's financial affairs.
Dishonour of cheque – A person cannot be made vicariously liable under provisions of Section 141 of NI Act, merely by stating that he was in-charge and responsible for day-to-day-conduct of accused c....
(1) Dishonour of cheque – Impleadment of all Directors of Accused Company on the basis of a statement that they are in charge of and responsible for conduct of business of company, without anything m....
Liability under Section 141 of NI Act depends on the role in the conduct of the company's affairs, not just the designation, and the burden of proof lies on the accused to establish lack of knowledge....
Independent and non-executive directors cannot be held liable under NI Act unless directly involved in the company's day-to-day operations. (Sections 138, 141)
The central legal point established in the judgment is the necessity of specific allegations in the complaint reflecting the role of the accused to establish vicarious liability under Section 141 of ....
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