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2020 (3) TMI 993 - HC - Indian LawsDishonor of Cheque - Proceedings against the Director of the company - No averments against the director in the complaint - offence under Section 141(2) of the Negotiable Instruments Act - HELD THAT:- The complaint in question is wanting on material particulars. The requirement of law in respect of creating vicarious liability must be strictly construed. Since it is a penal provision, creating vicarious liability, therefore, it is not sufficient to make bald and cursory statement in the complaint that Director is incharge and responsible to the company for the conduct of the business of the company without anything more. Rather in the instant case, no such averments have been made in respect of the petitioner being Director is also incharge and responsible to the company for the conduct of the business. The complaint must contain as to how and in what manner, the Director was incharge or was responsible to the company in conduct of its business. This should be in consonance with strict interpretation of penal statutes, especially, where such statute creates vicarious liability. In NATIONAL SMALL INDUSTRIES CORPN. LTD. VERSUS HARMEET SINGH PAINTAL [2010 (2) TMI 590 - SUPREME COURT] the Hon'ble Apex Court has interpreted on the aforesaid lines that requirement in terms of pleading has to be construed not only to the extent of mentioning the Director to be incharge of and responsible to the company for doing its business, but strictly spell out as to how and in what manner, he was incharge and responsible for the conduct of its business. The provisions of Section 141 of the Negotiable Instruments Act are pari materia with the provisions of Insecticide Act. In the absence of specific averments in the complaint, no Director can be proceeded against. No Director is required to prove his innocence by leading evidence in the trial, once the averments to this effect are not incorporated in the complaint. The averments made in the present complaint are fell short of statutory requirement. The prosecution against Director cannot be held sustainable in the absence of mandatory requirement in the pleadings. Petition allowed.
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