TMI Blog2022 (3) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... exercised except to make necessary order to give effect to an order under the Code of Criminal Procedure or to prevent abuse of the process of any Court or otherwise to secure the ends of justice - The petitioners in the case on hand have not made out such circumstances to exercise the said special power, which should be sparingly and cautiously exercised. The Criminal Petition is dismissed. - CRIMINAL PETITION No.4831 of 2015 - - - Dated:- 24-1-2022 - HON BLE DR. JUSTICE CHILLAKUR SUMALATHA Petitioner Advocate : S. Viplav Simha Reddy Respondent Advocate : Public Prosecutor TG ORDER: Heard the submission of learned counsel for the petitioners as well as learned counsel appearing for the 2nd respondent. 2. Gave anxious consideration to the contents of the decisions relied upon by the learned counsel for the petitioners. 3. This criminal petition is filed seeking to quash the proceedings in C.C.No.118 of 2014 which stood pending on the file of the Court of Judicial Magistrate of First Class at Huzurnagar, Nalgonda District. The petitioners who are arrayed as Accused Nos.1 3 in the said Calendar Case have approached this Court. 4. A perusa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e loss and indeed there were series of transactions between the petitioners firm and the 2nd respondent and during the business transactions, for the goods purchased, the petitioners firm issued several cheques, but most of them got returned due to insufficiency of funds, thereby causing loss to the business of the 2nd respondent and as all these years as stay is in force, the proceedings could not be taken up and the real culprits could not be punished and therefore justice has to be done. 8. To come to a just conclusion and to decide whether petitioners are entitled to the relief sought for, the relevant details with regard to the case as projected by the 2nd respondent/complainant are essential. 9. The version of the 2nd respondent complainant as could be seen through the complaint is that the 2nd respondent is doing business under the name and style of M/s.Sri Murali Krishna Iron Stores at Huzurnagar, and the petitioners are running business under the name and style of M/s.Well Erectors of New Engineering and during the course of business, the petitioners/Accused No.1 3 and the Accused No.2 (the petitioners herein and the Accused No.2 would be herein be referred to as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the Directors liable for the offence. The criminal liability can be fastened only on those who, at the time of the commission of the offence, were in charge of and were responsible for the conduct of the business of the company. (iii) Vicarious liability can be inferred against a company registered or incorporated under the Companies Act, 1956 only if the requisite statements, which are required to be averred in the complaint/petition, are made so as to make the accused therein vicariously liable for offence committed by the company along with averments in the petition containing that the accused were in charge of and responsible for the business of the company and by virtue of their position they are liable to be proceeded with. (iv) Vicarious liability on the part of a person must be pleaded and proved and not inferred. (v) If the accused is a Managing Director or a Joint Managing Director then it is not necessary to make specific averment in the complaint and by virtue of their position they are liable to be proceeded with. (vi) If the accused is a Director or an officer of a company who signed the cheques on behalf of the company then also it is not nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the offence punishable under Section 138 of N.I.Act is committed by a company. Section 141 of N.I.Act reads as under : 141 Offences by companies. - (1) (1) If the person committing an offence under section 138 is a company, every person who, at the time the 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 subsection 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: Provided further that where a person is nominated as a Director of a company by virtue of his holding any office or employment in the Central Government or State Government or a financial corporation owned or controlled by the Central Government or the State Government, as the case may be, he shall not be liable for prosecution under this Chapter. (2)(2)(Notwithstanding anything contained in sub-section (1), wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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