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2018 (10) TMI 408 - HC - Indian LawsDishonor of cheque due to insufficiency of funds - Vicarious Liability u/s 138 of NI Act - Whether the averments made in the complaint that the applicants are ''Karta Dharta'' and authorized signatories of the Company, is sufficient to make them vicariously liable for offence under Section 138 of the NI Act or not? Held that:- Although in the present case, the words used ''Karta Dharta'' in paragraph 1 of complaint cannot be said to be happily-worded complaint but if the meaning of words ''Karta Dharta'' is considered, then it would mean that the applicants along with other co-accused persons are managing the day-to-day business of the Company, as general meaning of ''Karta Dharta'' is the person who is enjoying all the powers. Whether the allegations that the persons, who have been arrayed as accused in a complaint under Section 138 of the NI Act, are really responsible for the day-to-day business of the Company or not, cannot be adjudicated by the Trial Court at the time of taking cognizance. The basic averment is necessary and there is no reason to disbelieve the basic averment to the effect that the persons who have been arrayed as accused, are responsible/ in charge of the day-to-day business of the Company. This Court is of the considered opinion that the trial Court after considering the allegations made against the applicants in paragraphs 1 and 2 of the complaint, did not commit any mistake in taking cognizance against the applicants and issuing summons to the applicants. Petition dismissed.
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