TMI Blog2018 (6) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... again, it has been asserted by the Hon'ble Supreme Court that only those persons who were in charge of and responsible for the conduct of the business of the Company at the time of Commission of an offence, will be liable for criminal action. A director, who was not in charge of and was not responsible for the conduct of the business of the Company at the relevant time, will not be liable for an offence under Section 141 of the Negotiable Instruments Act. The complaint filed against the present petitioner cannot be sustained and therefore, is liable to be quashed under Section 482 of Cr.P.C. However, the trial should go as far as the other accused are concerned. Since the complaint has been filed during the year 2012, the learned Judici ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a sum of ₹ 1,25,000/- by way of demand draft dated 31.03.2011 and promised to pay the balance amount within a period of five months. 4. Since no amount was forthcoming the respondent/complainant approached the accused and demanded them to pay the balance amount for which the accused issued a cheque bearing No.318380 dated 30.05.2012 for a sum of ₹ 7,00,000/- drawn on Central Bank of India, Chennai main Branch, Chennai. When the respondent/complainant had presented the said cheque through his banker Viz., Axis Bank Ltd., Saibaba Colony Branch, Coimbatore, on 01.06.2012 the said cheque was returned for the reason funds insufficient . Therefore, the respondent/complainant issued a legal notice dated 15.06.2012 to the accused a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that it operates in cases where an offence under Section 138 of the Negotiable Instruments Act, is committed by a Company. It is relevant to extract Section 141 of the Negotiable Instruments Act, which reads as follows:- 141. Offences by companies:- (1) If the person committing an offence under Section 138 is a company, every person who, at the time of offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. Provided that nothing contained in this sub-section shall render any person liable to punishment if he proves that the of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... struments Act, should be, at the time of the offence, in charge of and responsible for the Company and for the conduct of the business of the Company. Therefore, every person connected with the Company shall not fall within the ambit of the provision and it is only those persons who were in charge of and responsible for the conduct of business of the Company at the time of Commission of an offence, will be liable for criminal action. It follows from this that if a Director of a Company who was not in charge of and was not responsible for the conduct of the business of the Company at the relevant time, will not be liable under the provision. 9. The question of what should be the averment in a criminal complaint has come up for considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t him. This will enable him to meet the case at the trial. 10. As far as the second ground is concerned, the petitioner is able to show that he was not a director on the date of the issuance of the cheque. Apart from that, the respondent/complainant has not averred in his complaint as to the role played by the petitioner/4th accused in the first accused Company. Absolutely, there are no averments to the effect that the petitioner was responsible for the conduct of the business of the Company on the date of the alleged transaction. 11. The cheque in question was issued on 30.05.2012 and admittedly, the cheque was not issued by the present petitioner. Though, it is contended by the respondent/complainant that the petitioner/4th accuse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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