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IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
ARUN KUMAR SINGH DESHWAL
Lalit Chaprana – Appellant
Versus
State of U.P. – Respondent
JUDGMENT :
Arun Kumar Singh Deshwal, J.
1. Heard Sri Byas Kr. Prasad, Advocate holding brief of Sri Pradeep Kumar Keshri, learned counsel for the applicant, Sri Khwaja Shamshad Ahmad, learned counsel for opposite party No.2 and Sri Pankaj Saxena, learned A.G.A. for the State.
2. The instant application has been filed seeking quashing of the entire proceeding of Complaint Case No. 4501 of 2021 (Parvinder Singh vs. Mahadev Enterprises), under Section 138 N.I. Act, P.S. Hapur Nagar, District Hapur, pending before C.J.M., Hapur as well as the impugned summoning order dated 14.9.2021.
3. The facts giving rise to the present case are that Rs.20,50,000/- was given by opposite party No.2 to the applicant as loan in June, 2020 on persuasion of the applicant and co-accused to obtain contract in the name of the firm Mahadev Enterprises and just to return that amount a cheque of Rs.29,50,000/- dated 6.1.2021 was given by the applicant on behalf of his proprietorship concern (Mahadev Enterprises) to opposite party No.2 but on presenting the same before the bank, the same was dishonoured on 15.1.2021 and it was again presented before the bank on the advice of the applicant on 29.1.2021 but the same
A sole proprietorship cannot be prosecuted under Section 141 of the N.I. Act unless the proprietor is named in the complaint; the complaint was also quashed for being premature.
A proprietor of a proprietary concern can file a complaint as the payee under Section 138 of the N.I Act.
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....
Only the proprietor of a proprietorship firm can be held liable under Section 138 of the NI Act; mere representation does not establish liability.
Point of Law : Dishonoured of Cheque - Quash of Complaint - Offences committed by companies - Cheque has not been signed by petitioner and cheque has been issued with regard to business concern that ....
The proprietor of a sole proprietorship holding liability for a dishonored cheque under Section 138 NI Act does not require the business entity to be arrayed as an accused.
A proprietor of a proprietary concern cannot be prosecuted under Section 141 of the Negotiable Instruments Act if they are not the authorized signatory or proprietor of the firm.
A complaint under Section 138 of the N.I. Act is not maintainable if the company that issued the cheque is not impleaded as an accused, as vicarious liability of the proprietor arises only when the c....
Directors cannot be prosecuted under Section 138 of the NI Act without the company being joined as an accused, as vicarious liability requires the company to be a party to the proceedings.
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