Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2017 (6) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 25 - HC - Indian LawsOffence punishable under Section 138 of the Negotiable Instruments Act - Dishonour of cheque for insufficiency, etc., of funds in the account - liability of director - Held that:- The petitioner was not a director in the company on the date the cheque was presented for encashment. No notice in terms of Section 138 of the Negotiable Instruments Act was issued to or served on him. Having resigned from the position of the director, there was no occasion for him to be privy to the service of notice of demand on the company. Since he was no longer responsible for the conduct of the business of the company, and had no occasion to be aware of the dishonor of the cheque or the notice of demand served in its wake, it cannot be said by any stretch of reasoning that he had knowledge or could have exercised due diligence to prevent the commission of the offence or is guilty of connivance or neglect, there being no material shown to impute consent. For the foregoing reasons, the continuance of the criminal proceedings against the petitioner is found to be an abuse of the judicial process. This court is duty bound to secure the ends of justice by taking measures to prevent such abuse of judicial process. Thus, the petition is allowed.
|