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2019 (2) TMI 1930 - HC - Indian LawsDishonor of cheque - petitioners herein were the nominee Directors - in-charge of the affairs of the company or not - HELD THAT:- Undisputedly, the cheques in question were issued by accused No. 1-Company in discharge of the debt alleged to have been due by the company and said cheques have been dishonoured, which has given rise to initiation of the action for the offence under Section 138 of the Act. In the complaint filed under Section 200 of Cr.P.C., the respondent/complainant has specifically averred that the cheques in question were issued by accused No. 1-Company and the same was signed by accused No. 5, who was Deputy General Manager and the authorized signatory of accused No. 1-Company. The issue no more res-integra in view of the specific provisions contained in Section 141 of the Act and the law laid down in catena of judgments of the Apex Court including the decision referred to by the learned counsel for the petitioners. Section 141 of the Act provides that, when an offence is committed by the company, the officer in-charge, who was responsible to the company for conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. In the instant case, the petitioners herein are sought to be prosecuted solely in their capacity as the Directors of the Company. There is absolutely nothing in the entire complaint to indicate that the petitioners herein were in the management of the affairs of the company either at the time of issuance of cheques or at the time of its dishonour - the prosecution of the petitioners for the alleged offence is contrary to provisions of Section 141 of the Act and is liable to be quashed. Petition allowed.
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