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2019 (3) TMI 294 - SC - Indian LawsDishonor of Cheque - insufficiency of funds - repayment of borrowed amount - Section 138 of the Negotiable Instruments Act, 1881 - In the present case, the record before the Court indicates that the cheque was drawn by the appellant for Lakshmi Cement and Ceramics Industries Ltd., as its Director - A notice of demand was served only on the appellant. The complaint was lodged only against the appellant without arraigning the company as an accused - Held that:- The provisions of Section 141 postulate that if the person committing an offence under Section 138 is a company, every person, who at the time when the offence was committed was in charge of or was responsible to the company for the 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. In the absence of the company being arraigned as an accused, a complaint against the appellant was therefore not maintainable. The appellant had signed the cheque as a Director of the company and for and on its behalf. Moreover, in the absence of a notice of demand being served on the company and without compliance with the proviso to Section 138, the High Court was in error in holding that the company could now be arraigned as an accused. The High Court was in error in rejecting the petition under Section 482 of the CrPC - appeal allowed.
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