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2023 (4) TMI 1009 - CALCUTTA HIGH COURTDishonour of Cheque - directors on the date when cheque was issued or not - vicarious liability of Director - section 141 of NI Act - HELD THAT:- Diamond Shipping Limited has not come forward seeking encashment of the criminal proceeding instituted against it. The petitioners were erstwhile directors of the company who retired from the post of directors of the said company with effect from 10th June, 2014. Therefore, the factual circumstance is similar to the facts and circumstance of HARSHENDRA KUMAR D. VERSUS REBATILATA KOLEY [2011 (2) TMI 1278 - SUPREME COURT] wherein the Hon’ble Supreme Court was pleased to hold that on the date the offence was committed under Section 138 of the N.I Act by the company the appellant was not the director; he had nothing to do with the affairs of the company. Thus, it was held by the Hon’ble Supreme Court that in such view of the matter, if the criminal complaints are alleged to proceed against the appellant, it would result in gross injustice to the appellant and tantamount to an abuse of the process of the court. In the instant case similar is the situation. The petitioners were not directors of the company on the date when the cheques were issued. It is not the case of the opposite party No. 2/complainant that they were the signatories of the cheques. The criminal proceedings against the present petitioners quashed - revision allowed.
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