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2007 (9) TMI 717 - HC - Indian Laws
Issues involved: Complaint under Section 138 of Negotiable Instruments Act 1881 against company and its directors. Quashing of complaint and summoning order.
Details of the judgment:
Issue 1: Allegations against the directors of the company
- Respondent No.2 filed a complaint u/s 138 alleging non-payment of dues by accused No.1.
- Accused No.2 to 7 described as managing director and directors of accused No.1.
- Pre-summoning evidence led to summons against all accused.
- Accused No.4, 3, and 6 sought quashing of the complaint and summoning order.
- Directors' liability under Section 141 of the Negotiable Instruments Act 1881 discussed.
- Supreme Court decisions emphasized the need for specific averments against directors.
- Complaint lacked specific allegations against directors, leading to quashing of petitions by accused No.2 to 7.
Issue 2: Existence of complainant company during the transaction
- Accused No.1 issued a cheque to the complainant company.
- Dispute regarding the existence of the complainant company during the transaction.
- Prima facie evidence suggested the complainant existed during the transaction.
- Complaint and summoning order upheld against accused No.1.
- Petitions by accused No.2 to 7 quashed, no costs awarded.