TMI Blog2022 (4) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... Negotiable Instruments Act is not sustainable. Added to it, on perusal of the notice and the complaint, it is seen that there is no specific averments against the petitioners who had taken part in the dayto- day affairs of the Company. Hence, it is imperative to array the company as an accused and thereafter, proceed against the Directors and others. Thus, looking from any angle the accused cannot be prosecuted and hence, the complaint against the petitioners is not sustainable. Petition allowed. - Crl.O.P.No.15223 of 2018 and Crl.MP.No.7720 of 2018 - - - Dated:- 17-3-2022 - THE HONOURABLE MR.JUSTICE M.NIRMAL KUMAR For the Petitioners : Ms.S.Sweda for Mr.Arun Anbumani For the Respondent : Mr.D.Chandrasekar ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was issued on 15.01.2018. The petitioners issued a reply notice on 02.02.2018. Since the reply was not proper and was issued for the purpose of evading payment, the respondent lodged a complaint before the learned Judicial Magistrate No.1, Panruti and the same was taken on file in C.C.No.37 of 2018. Hence, the petitioners approached this Court by filing this petition to quash the same. 3.The contention of the petitioners is that the first petitioner was previously a Director in Himaalayaa Agro Tech Limited, a Company incorporated in the year 2011, one Mr.Nagaiah was the Chairman of the Company and few others were working. Due to certain reasons, the Company did not perform well as planned, thereafter the first petitioner stayed away from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioners cannot be proceeded with. It is further submitted that the petitioners are arrayed as accused fastening vicarious liability for the Company invoking Section 141 of the Negotiable Instruments Act. Further the complaint lack basic averments required to invoke Section 141 of the Negotiable Instruments Act. It is further submitted that the first petitioner hails from a respectable family, now not gainfully employed finding it difficult to make the ends meet. The second and third petitioners are homemakers, the second petitioner got several health issues, the third petitioner is under medical treatment and she is living separately with her family after marriage. Further, the copy of the cheque produced wherein it is seen that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther, the points raised by the petitioners are factual in nature which are to be decided during trial and not in a quash petition. It is further submitted that the Apex Court in the case of Sheoratan Agarwal and another vs. State of Madhya Pradesh reported in 1984 AIR 1824, wherein it was held that there is no statutory compulsion that the person-in-charge or an officer of the Company may not be prosecuted unless he be ranged alongwith the Company itself. When the complainant is able to show that Directors independently acted at the time of committing the offence, was in-charge and responsible for the conduct of the business of the Company and with whose consent or connivance or neglect attributed for committing the offence, they can be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of offence by the company is an express condition precedent to attract the vicarious liability of others. Thus, the words as well as the company appearing in the Section make it absolutely unmistakably clear that when the company can be prosecuted, then only the persons mentioned in the other categories could be vicariously liable for the offence subject to the averments in the petition and proof thereof. One cannot be oblivious of the fact that the company is a juristic person and it has its own respectability. If a finding is recorded against it, it would create a concavity in its reputation. There can be situations when the corporate reputation is affected when a director is indicted. 59.In view of our aforesaid analysis, we ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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