Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2021 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 117 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - Amicable settlement - Section 138 read with Section 141 of the Negotiable Instruments Act - HELD THAT:- The prosecution under Section 138 of the Negotiable Instruments Act is against persons who have issued the cheque, which is later dishonored. Mere assurance of payment or selection of jewellery cannot be the basis to rope in the petitioners. It is vaguely stated in the complaint that the petitioners are directors and responsible for the day-to-day affairs of the A1 company. But in the given facts and circumstances of the case and particularly the uncontroverted claim of the petitioners that they are household ladies, this Court is of the opinion that vague and omnibus against the petitioners/directors as being responsible for the day-to-day affairs of A1 company is not sufficient. Mere verbatim reproduction of the words contained in Section 141 of the Negotiable Instruments Act without any specific role attributed to each of the petitioners in the A1 company, cannot be the basis to prosecute the petitioners, as the same would unjust and result in abuse of process of law. In POOJA RAVINDER DEVIDASANI's case [2014 (12) TMI 1070 - SUPREME COURT], the Supreme Court allowed the quash petition not only on the ground that there is no specific role attributed to the appellant but also on the ground that the appellant has resigned as Director much prior to issuance of the cheque. The criminal petition is allowed.
|