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2010 Supreme(SC) 158

Supreme Court of India
THE HONOURABLE MR. JUSTICE P. SATHASIVAM & THE HONOURABLE MR. JUSTICE H.L. DATTU
National Small Industries Corp. Ltd.
Versus
Harmeet Singh Paintal & Another
CRIMINAL APPEAL NO. 320-336 OF 2010 (Arising out of S.L.P. (Crl.) Nos. 445-461 of 2008) WITH CRIMINAL APPEAL NO. 337 OF 2010 (Arising out of S.L.P. (Crl.) No. 1079 of 2008)
Decided on : 15-02-2010

Advocates appeared:
For the Appellants:Sanat Kumar, Sanjay Sharma and Sanjay Sharawat, Advocates.
For the Respondents:P.P. Malhotra, ASG, Vikas Bansal, Ms. Sadhna Sandhu, Mrs. Anil Katiyar, Vikash Mehta, Narhari Singh and Rohit Bhat, Advocate.

Headnote:A) CRIMINAL PROCEDURE CODE : S.482 NEGOTIABLE INSTRUMENTS ACT : S.138, S.141:- In order to fix the vicarious liability on behalf of the companies in a prosecution for the offence under Section 138 of N.I. Act, Section 141 stipulates the conditions that the complaint shall specifically state as to how the accused are in charge of the day to day conduct of the business of the company. There is no inference automatically that every person named as director of the company is so liable vicariously under this section and it is matter to be pleaded and proved by the complainant. In the present case no such material is shown and in fact on the date on which cheques in question are issued, he was not the Director at all, order of the High Court quashing the complaint against the accused respondent is upheld.

       

       

Judgment :

P. Sathasivam, J.

1) Leave granted in all the above special leave petitions.

2) The appeals arising out of S.L.P. (Criminal) Nos. 445-461 of 2008 have been filed by the appellant-National Small Industries Corporation Limited against the common judgment and order dated 24.10.2007 passed by the High Court of Delhi at New Delhi in a batch of cases whereby the High Court quashed the summoning orders passed by the trial Court against respondent No.1 -Harmeet Singh Paintal, under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881 (for short "the Act")

3) The connected criminal appeal arising out of S.L.P. Crl. No. 1079 of 2008 is filed against the judgment and order dated 24.05.2007 passed by the High Court of Delhi in Criminal Revision Petition No. 163 of 2005, whereby the High Court quashed the summoning order passed by the trial Court against respondent No.1 - Dev Sarin under Section 138 read with Section 141 of the Act.

4) Since all these appeals are identical and same legal issues arise, they are being disposed of by this common judgment.

5) The appellant - National Small Industries Corporation Ltd. had filed 12 criminal complaints under Section 138 read with Sections 141 and 142 of the Act against M/s Jay Rapid Roller Limited, a Company incorporated under the Companies Act, its Managing Director - Shri Sukhbir Singh Paintal, and its Director -Shri Harmeet Singh Paintal. It is the claim of the appellant that so as to make the Managing Director and Director of the Company liable to be prosecuted under the provisions of the Act, they had specifically averred in the complaint that all the accused persons approached it for financing of bill integrated market support programme. It was also stated that the accused persons had issued cheques which were dishonoured on presentation against which the appellant had filed criminal complaints under the provisions of the Act against all the respondents herein. It is their further case that all the accused persons accepted their liability and delivered various cheques, which are the subject matter of the present appeals.

6) In the connected appeal, the appellant -DCM Financial Services Ltd., entered into a hire purchase agreement on 25.02.1996 with M/s International Agro Allied Products Ltd. At the time of entering into contract, the Company handed over post-dated cheques to the appellant towards payment of monthly hire/rental charges. Respondent No.1 -Dev Sarin was one of the Directors of the said Company. The cheque issued by International Agro and Allied Products Ltd. in favour of the appellant was duly presented for payment on 28.10.1998 and the same was returned unpaid for the reason that the Company had issued instructions to the bankers stopping payment of the cheque. The appellant issued a legal notice on 05.12.1998 to the Company, Respondent No.1 and other Directors under Section 138 of the Act informing them about the dis-honouring of the cheque in question. Despite the service of the notice, the Company did not make the payment to the appellant. The appellant, on 11.01.1999, filed a complaint before the Metropolitan Magistrate, New Delhi against respondent No.1 and others under Section 138 read with Section 141 of the Act. By order dated 04.02.1999, the Metropolitan Magistrate, New Delhi, after recording evidence summoned the accused persons including respondent No.1 herein. Respondent No.1 filed an application before the Additional Sessions Judge, Delhi for dropping of proceedings against him. By order dated 08.09.2004, the Metropolitan Magistrate dismissed the said application. Aggrieved by the said order, the respondent filed a petition under Section 482 of the Criminal Procedure Code before the High Court for quashing of the complaint. The High Court, after finding that the averments against respondent No.1 are unspecific and general and no particular role is assigned to the appellant, quashed the summoning order insofar as it concerned to him.



































































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