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2021 (10) TMI 140 - HC - Indian LawsDishonor of Cheque - vicarious liability of a person who is responsible to the company for the conduct of business of the company - offences punishable under Section 138 read with Section 141 of the Negotiable Instruments Act - HELD THAT:- The averments are not to the effect that petitioner no.11 was ‘in charge’ of, but to the effect that, he was looking after and responsible for the day-to-day affairs, conduct and management of accused no.1Company. Expression ‘in charge’ and ‘looking after’ the affairs, conduct of respondent company, are distinct. Section 141 uses the words “was in-charge of, and was responsible to the company for the conduct of the business of the company”. In absence of averments in the complaint, that petitioner no.1 is also “in charge” of the business of the company, the case could not fall under Section 141(1) of the Act. This takes to find out whether, petitioner no.11 being Officer of the Company could be made liable under subsection 2 of Section 141. When verified, the averments in the complaint, are vague and general in nature and do not particularize the role of the petitioner in regard to facility agreement dated 28th March, 2010 executed by the Company with the complainant; nor the complaint discloses that the alleged offence was committed by the Company in connivance or was a result of the negligence of the petitioner no.11. As a consequence, petitioner cannot be made liable under sub-section (2) of Section 141 of the Act. Petition allowed.
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