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2006 Supreme(UK) 147

2007 N.C.C. 123
SUPREME COURT OF INDIA
Hon’ble Mr. Justice S.B. Sinha and Hon’ble Mr. Justice Markandey Katju
RAGHU LAKSHMINARAYANAN – Appellant
Versus
M/S. FINE TUBES – Respondent
Criminal Appeal No. 485 of 2007 (Arising out of S.L.P. (Crl.) No. 4211 of 2006)
Decided on : 05.04.2006

For the Appellant :Mr. G. Sivabalamurugan, Mr. Y. Arvnagiri and Mr. L.K. Pandey, Advocates
For the Respondent: Ms. Tatini Basu (for Mr. Sudhir Nandrajog), Adv.

Headnote:Negotiable Instrument Act, 1881 - Sec. 138 & 141 — In complaint accused No. 1 was described as a "business concern" — It was not described as a company or a partnership firm or an Association of Person — Concept of vicarious liability was introduced in penal statutes like N.I. Act to make directors, partners or other persons incharge of and control of business of company or otherwise responsible for its affairs — The Company itself being a juristic person — The description of the accused in the complaint is absolutely vague — A juristic person can be a company within the meaning of the provisions of the Companies Act, 1956 — Or a partnership within the meaning of the provisions of the Indian Partnership Act, 1932 — Or an association of person which ordinarily would mean a body of person which is not incorporated under any status — Complaint must contain requisite averments to bring about a case within purview of Sec. 141 N.I. Act — So as to make some person liable other than company vicariously liable therefore — For the reason aforementioned the complaint case against the appellant quashed. (Paras 7, 8, 9, 10, 16, 17)

        ijkdE; fyf[kr vf/kfu;e] 1881 & /kkjk 138 ,oa 141 & ifjokn esa vfHk;qDr la[;k 1 dks ,d ßO;kikfjd izfr"BkuÞ ds :i esa of.kZr fd;k x;k gS & bldks u rks ,d dEiuh ds :i esa ;k ,d lk>hnkjh QeZ ds :i esa ;k O;fDr;ksa ds laxe ds :i esa nf'kZr fd;k x;k gS & izfrfuf/kd nkf;Ro dh /kkj.kk nkf.Md dkuwu ds :i esa ijkdE; fyf[kr vf/kfu;e ls lEof"V dh x;h gS tks funsZ'kd ;k lk>hnkj ;k vU; O;fDr tks dEiuh ds O;olk; ds fu/kkZj.k dk Hkkjlk/kd vf/kdkjh gS ;k vU;Fkk mlds dk;ks± ds fy, mRrjnk;h gS dks nk;h cukrh gS & dEiuh Lo;a vius vki esa Hkh ,d fof/kd O;fDr gS & ifjokn esa vfHk;qDr dk o.kZu iw.kZ :i ls Li"V ugha gS & dEiuh vf/kfu;e 1956 ds vFkZ ,oa izko/kkuksa ds vUrxZr dEiuh ,d fof/kd O;fDr gks ldrh gS] Hkkjrh; lk>hnkjh vf/kfu;e 1932 ds vFkZ ,oa izko/kkuksa ds vUrxZr lk>hnkjh ,d fof/kd O;fDr gks ldrh gS & vkSj O;fDr;ksa dk laxe ftldk lk/kkj.kr;k vFkZ O;fDr;ksa dk laxBu gS tks fd fdlh dkuwu ds vUrxZr lek;ksftr ugha gS & ifjokn dks /kkjk 141 ijkdE; fyf[kr vf/kfu;e ds izko/kkuksa esa ykus ds fy;s ;g ,d vko';d vis{k.kh; izFkeu gS & rHkh fdlh O;fDr dks dEiuh ds dk;Z ds fy;s izfrfuf/kd nkf;Ro ds vUrxZr nk;h Bgjk;k tk ldrk gS & mijksDr of.kZr dkj.kksa ds vk/kkj ij vihykFkhZ ds fo#) ifjokn vfHk[kf.Mr fd;k tkrk gSA ¼izLrj 7] 8] 9] 10] 16] 17½

JUDGMENT

S.B. Sinha, J. — Leave granted.

2. Appellant before us was arrayed as accused No. 3 in the Complaint Petition filed by the first respondent herein, before the Chief Metropolitan Magistrate, Delhi which was registered as a Complaint Case No. 379/1/2003. The said complaint petition was filed for trying the accused persons named therein for commission of an offence under Section 138 of the Negotiable Instruments Act alleging that a cheque dated 15.8.2002 was issued by the accused Nos. 2 to 6 for a sum of Rs. 2 lacs drawn at Canara Bank which on presentation was dishonoured and the accused despite notice, did not pay the said amount.

3. The status of the accused No. 1 was not disclosed in the array of the accused persons.

4. It was sought to be represented through Director(s)/Chairman/Managing Director, Proprietor(s), Incharge(s). Appellant herein was also described in similar capacity viz. “in charge, manager, director of the accused No. 1”. So were the other respondents.

5. In the complaint-petition, however, it was alleged :

“1. The complainant is a partnership duly registered with the Registrar of firms at Delhi, and Mohit Gupta is one of its partner and duly authorized and empowered to file this complaint for and on behalf of the complainant.

2. That the respondent No. 1 is a business concern and the respondent Nos. 2 and 6, alongwith other officer(s) etc., are its disclosed in charges, Managers, Director(s) and partners as they have through out been dealings with the complainant by representing themselves to be so responsible for the dealings and day to day working of the respondent No. 1.”

6. The learned Chief Metropolitan Magistrate issued summons on the other accused persons relying or on the basis of the averments made in the said complaint petition filed by the respondent herein. An application filed by the appellant herein for quashing the summons issued to him in an application filed before the High Court under Section 482 of the Code of Criminal Procedure was dismissed stating;

“...After the pre-summoning evidence was recorded the learned MM found that prima facie case was made out against all the accused persons and, therefore, summoned these accused, challenging these summoning orders accused No. 3 has filed this petition under Section 482 Cr.P.C. it is inter alia, contended that he was never the director of the said accused No. 1: cheque in question was not signed by him and that he was not responsible for the conduct of business of accused No. 1 it is the case of the petitioner that he was an employee of the accused No. 1. In support appointment letter dated 15.7.2000 is enclosed as per which petitioner was appointed as “Director-Production”. In this capacity he was to be responsible for entire production, including machine selection as well as labour, process and material management. Thereafter, vide letter dated 21.10.2001, which is also produced by the petitioner, he was asked to head the marketing department and was given the designation “Director-Marketing”. Prima facie, as Director-Marketing the petitioner was in-charge of the marketing division of the accused No. 1. I find that there are specific averment made in the complaint that the petitioner in that capacity was dealing with the complainant and was handling day-to-day affairs of the accused No. 1. Therefore, what the petitioner contends are the disputed questions of fact and it forms his defence which is to be led before the Trial Court. Such questions cannot be entertained in this petition under Section 482 Cr.P.C....”

7. A bare perusal of the complaint petition would show that the accused no. 1 was described therein as ‘a business concern’. It was not described as a Company or a partnership firm or an Association of Persons.

8. The concept of vicarious liability was introduced in penal statutes like Negotiable Instruments Act to make the Directors, partners or other persons, in charge of and control of the business of the Company or otherwi











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