Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2018 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (6) TMI 1788 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - absence of any allegations in the complaint with details as to how the petitioner is authorized in day-to-day affairs of the company - vicarious liability u/s 141 of NI Act - HELD THAT:- Though the petitioner is one of the Directors of the company, merely because he has transferred a sum of ₹ 1,00,000/- from his account to the account of the complainant, it is difficult to hold that the petitioner is actively participating in day-to-day affairs of the business of company. Mere payment by the petitioner being one of the Directors is not sufficient to fasten liability under Section 141 of the Act - While dealing with the vicarious liability of the Directors of the company, the Apex Court in SUNIL BHARTI MITTAL VERSUS CENTRAL BUREAU OF INVESTIGATION [2015 (9) TMI 1339 - SUPREME COURT] is of the view that the principle which is laid down is to the effect that the criminal intent of the "alter ego" of the company, that is the personal group of persons that guide the business of the company, would be imputed to the company/corporation. The averments made in paragraph No.5 of the complaint are not sufficient to fasten the liability against the petitioner and in the absence of such details, the complaint against the petitioner, who is arrayed as A2, for the offence under Section 138 of the Act and under Section 420 IPC is not maintainable and consequently, the proceedings against the petitioner are liable to be quashed - Petition allowed.
|