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2017 (5) TMI 371 - HC - Indian LawsLiability of one of a Director of a Company under Section 141 of N.I. Act for the dishonour of the cheque issued by the original accused on behalf of the company - Held that:- ed. The law so far as the liability of a Director of a Company under Section 141 of the Act is concerned, is no longer res integra. The Supreme Court in the case of National Small Industries Corporation Limited v. Harmeet Singh Paintal and another [2010 (2) TMI 590 - SUPREME COURT OF INDIA ]vwherein held that in the absence of specific averment as to the role of the respondents and particularly in view of the acceptable materials that at the relevant time they were in no way connected with the affairs of the company, we reject all the contentions raised by learned counsel for the appellants. Merely being a director of a company is not sufficient to make the person liable under Section 141 of the Act. A director in a company cannot be deemed to be in charge of and responsible to the company for the conduct of its business. The requirement of Section 141 is that the person sought to be made liable should be in charge of and responsible for the conduct of the business of the company at the relevant time. This has to be averred as a fact as there is no deemed liability of a director in such cases. This application succeeds and is hereby allowed. The proceedings of the Criminal Case pending in the court of the learned Metropolitan Magistrate, Court No.36, Ahmedabad are hereby quashed so far as the applicant is concerned. The case shall now proceed further expeditiously in accordance with law so far as the other co-accused are concerned. Rule is made absolute to the aforesaid extent.
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