A corporate entity and its directors are vicariously liable for dishonored cheques under the Negotiable Instruments Act, with the presumption of liability shifting to the accused to prove otherwise.

JUDGMENT

1. By means of this criminal revision, petitioner has challenged the impugned judgment dated 28.08.2019 passed by the Additional Sessions Judge, Court No.4, Agartala in Criminal Appeal No.17 of 2018 affirming the judgment and order of conviction and sentence dated 18.09.2018 passed by the learned Additional Chief Judicial Magistrate, West Tripura, Agartala in case No.NI 132 of 2012 whereby each of the three accused were convicted under section 138 of the Negotiable Instruments Act, 1881 and sentenced to a fine of Rs.50,000/- with default stipulation.

2. The factual context of the case is as under:

Subal Chandra Das lodged a complaint in the court of the Chief Judicial Magistrate at Agartala on 19th day of October, 2012 alleging, inter alia, that by way of publishing advertisement in a local daily, the accused company namely, Tripura Real Estate Constructions Limited offered land for sale at Agartala. Pursuant to the said advertisement, the complainant who was a Government employee at that time approached accused No.2 Bankim Chowdhury, Chief Managing Director of the accused company and entered into an unregistered agreement for purchasing a plot of land measuring 0308 acres at Agartala in plot No.324/2994 at Agartala Mouja recorded in Khatian No.940. Price of the land was settled at Rs.7,00,000/- and under the said agreement, complainant paid a sum of Rs.1,00,000/- in advance to accused No.2 Bankim Chowdhury. Accused No.2 assured on behalf of the accused company that a registered sale deed would be executed in favour of the complainant within 75 days. Even after the expiry of the period stipulated in the agreement, no sale deed was executed on behalf of the company in favour of the complainant. Rather, accused Bankim Chowdhury being the Chief Managing Director of the said company had issued a cheque vide cheque No.723424 dated 30.06.2012 of a sum of Rs.1,00,000/- in favour of the complainant towards refund of the advance taken from him. The said cheque was drawn on Indusind Bank at its Mantri Bari Road branch, Agartala. The cheque was signed by said Bankim Chowdhury, Chief Managing Director and Smt. Ratna Debnath who was the Accounts Director of the said real estate construction company. On 02.07.2012, the complainant presented the cheque at the Teliamura Branch of the United Bank of India where he had an account. From UBI, the cheque was sent to the IndusInd Bank for encashment. But it was returned to the bank of the complainant with an endorsement dated 07.07.2012 to the effect that the said cheque was dishonoured due to insufficiency of fund in the account of the accused company. Complainant informed accused Bankim Chowdhury about the dishonor of the cheque who assured that sufficient fund would be made available in the account of the company and asked the complainant to resubmit the cheque. Following such assurance, complainant again presented the cheque at his bank on 27.07.2012. The said cheque was again returned to his banker with an endorsement that it was dishonoured for insufficient fund in the account of the drawer of the cheque. Complainant then issued a demand notice to accused Bankim Chowdhury demanding refund of Rs.1,00,000/- within 15 days from the date of the receipt of the demand notice. The notice was sent to the accused by post registered with AD. Since, there was no response from the side of the accused, complainant lodged the complaint in the court of the Chief Judicial Magistrate impleading the com