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2019 (1) TMI 1375 - HC - Indian LawsDishonor of Cheque - Vicarious liability u/s 141 of NI Act - prosecution of the parties - Held that:- This court considered more or less similar issues in the context of a batch of similar prosecutions for offence under Section 138 of the Negotiable Instruments Act, 1881 in decision reported as Jwala Devi Enterprises Pvt. Ltd. vs. Fadi El Jaouni, [2018 (7) TMI 1568 - DELHI HIGH COURT]. While construing the penal clause under Section 138 of the N.I.Act, this court observed that The dishonor of a cheque which had been issued by the person (who is sought to be prosecuted) in favour of the complainant must be followed by a notice of demand within the stipulated period. It is the non-payment of the amount of the cheque within the statutory period after service of the notice of demand which constitutes the offence that is punishable under the aforementioned provision of law. Going by the averments in the complaint at hand, it not being a case of the complainant that the petitioners were the signatories to the cheques in question, the order summoning them as accused merely on the allegations that they were “the directors” in the company accused at the relevant point of time is bad in law - petition allowed.
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