TMI Blog1991 (9) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... Area, Banmore, District Morena (MP). This company has also its office at Gwalior. Shri T.P.S. Kalra is another director of this company. The petitioner-company had business dealings with Messrs. Star Wire India Ltd. In Criminal Miscellaneous No. 3703-M, the complainant-company had supplied some goods and Shri T.P.S. Kalra, director of the accused company, issued a cheque for ₹ 1,27,648.26 on May 15, 1989. The complainant company handed over this cheque to its banker, the Bank of Maharashtra, Faridabad, for collecting the amount. The bank sent this cheque to the Central Bank of India but it was returned with the remarks refer to drawer . The complainant-company received intimation on August 2, 1989, of the dishonouring of the cheque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ground that he was not in charge of the business of the company and that his prosecution is bad due to non-issue of notice required under Section 138 of the Act. The provisions of this section read as under : 138. Dishonour of cheques for insufficiency, etc., of funds in the account--Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be dishonoured by the bank on the ground of lack of sufficient funds or on the ground that it exceeds the amount arranged to be paid from that account by an agreement made with that bank. (iii) that the cheque is presented within six months from the date of its issue or within the period of its validity. (iv) the payee or holder in due course of the cheque makes a demand for the payment of the said amount or money by giving notice in writing to the drawer of the cheque within 15 days of the receipt of information from the bank regarding its dishonour. (v) the drawer of the cheque fails to make the payment to the payee or the holder of the cheque within 15 days of the receipt of the said notice. 6. Thus, in the present case, adm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 offence was committed without his knowledge, or that he had exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in Sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to, any neglect on the part of, any director, manager, secretary or other officer of the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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