Home Case Index All Cases Companies Law Companies Law + SC Companies Law - 2014 (1) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (1) TMI 580 - SC - Companies LawQuashing of proceeding u/s 482 Cr.P.C. - Proceedings initiated u/s 138 of the Negotiable instruments Act - Absence of basic ingredients of offence punishable under Sections 138 - High Court refused to quash proceeding - whether an authorised signatory of a company would be liable for prosecution under Section 138 of the Negotiable Instruments Act, 1881 without the company being arraigned as an accused - Held that:- words “as well as the company” appearing in the Section make it absolutely unmistakably clear that when the company can be prosecuted, then only the persons mentioned in the other categories could be vicariously liable for the offence subject to the averments in the petition and proof thereof - for maintaining the prosecution under Section 141 of the Act, arraigning of a company as an accused is imperative. The other categories of offenders can only be brought in the dragnet on the touchstone of vicarious liability as the same has been stipulated in the provision itself. Cheque has been issued on behalf of M/s. Som Distilleries & Breweries Limited and the appellants are Managing Director and Directors of another company, namely, M/s. Som Distilleries Limited, having no connection with the company issued the cheque - Decided in favour of appellant.
|