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2018 (4) TMI 419 - HC - Indian LawsMis-utilization of cheques issued - sub-contract - the proceeding has been challenged here on the ground that prima-facie there is no material to take cognizance against the petitioners with regard to commission of aforesaid offences - it is contended that this is purely a civil dispute - Held that: - the substance of the grievance is that the cheque book was given after signature with a specific direction to use with regard to payment if required for implementation of contract relating to construction of road but the cheque was used for other purposes than that and efforts were made to encash it and after getting the cheque dishonored, the petitioners’ company filed complaint under Section 138 of the N.I. Act against the respondent no. 2 /complainant. It is also evident that the complaint under Section 138 of the N.I. Act has been filed by M/s. BVSR Construction Company, therefore, the beneficiary under the alleged act is the company and the petitioners have merely worked on behalf of the company. Prima-facie it appears that it is a dispute with regard to account having nature of civil dispute and the complainant /respondent no 2 without taking recourse to resolve the matter in civil side simultaneously has made efforts to implicate them by setting criminal case into motion. The Apex court in the case of Sharad Kumar Sanghi Versus Sangita Rane [2015 (2) TMI 1117 - SUPREME COURT], has held that when the act is done on behalf of the company and the company has not been arrayed as an accused, no criminal proceedings can be initiated against the representatives / employees of the company unless they are personally responsible for the act. This court is of the considered view that the proceedings against the petitioners on the complaint filed by the respondent no 2 / complainant deserves to be set aside - petition allowed.
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