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2022 (11) TMI 431 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - vicarious liability of directors - Section 141 of NI Act - HELD THAT:- It is an admitted case of the petitioner that Letter of Credit Facility was availed on 26.12.2014. The impugned cheque issued in discharge of liability dated 16.06.2015. Further, the print out taken from the website of Ministry of Corporate Affairs, it is seen that the petitioner had resigned from the post of Director on 24.01.2012. Added to it, except for the said reference in Paragraphs 5 and 8 made about the petitioner, there is nothing more. In the case of S.M.S. Pharmaceuticals Limited vs. Neeta Bhalla and another [2007 (2) TMI 311 - SUPREME COURT].], it has been held that a person, who is arrayed as an accused invoking Section 141 of the Negotiable Instruments Act amounts to vigorous liability, which cannot be automatic. There is no specific averments in the complaint to show that the petitioner was in-charge and responsible for the conduct of the business of the company. Further, the two requirements in Section 141 of the Act has to be read conjointly and not disjointly. Liability of directors to be determined on the date on which they resigned. In the present case the petitioner resigned in the year 2012. Dishonored cheque issued in the year, 2015 - The dismissal of the quash petitions filed by A2, A4 and A5 would no way affect the case of the petitioner, since in that case the ground taken was that the cheque was issued as security, which is not the case herein. Petition allowed.
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