MADRAS HIGH COURT
T. V. Masilamani, T. Raja, JJ
Raman v. Shasun Chemicals
| Table of Content |
|---|
| 1. question of statutory notice for directors (Para 1 , 2 , 3 , 4) |
| 2. counsel submissions regarding notice (Para 5 , 6 , 7) |
| 3. analysis of sections 138 and 141 (Para 8 , 9 , 10 , 11 , 12 , 14) |
| 4. vicarious liability explained (Para 17 , 20 , 21) |
| 5. conclusion and ruling on mandatory notice (Para 36 , 37 , 39) |
1. The question posed before this Division Bench is as follows :
In the absence of individual notice under S.138(b) of the Negotiable Instruments Act, to be served on the director of a company, can the said director be prosecuted for the offence, committed by the company, under S.138 of the Act ?
2. When this question was posed before a learned single Judge, Justice T. V. Masilamani, as he then was, it was brought to the notice of the learned single Judge, that, in Harish C. Chadda, Director, Nubal (India) Ltd. v. XS Financial Services Ltd., 2001 (2) L.W. (Cri.) 625, Justice D. Murugesan held that the prosecution against the director, who has not been served with a statutory notice, is not maintainable. In another decision, rendered by Justice Malai Subramanian, as he then was, in Sarvaraya Textiles Ltd. v. Integrated Finance Ltd. , 2001 (1) CTC 725 , it is held tha
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