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2022 (4) TMI 922

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..... ru (CCH-1) stands quashed in the same terms as is directed in SRI SUDEEP SRINIVAS (REPRESENTED BY HIS GPA HOLDER SMT. PUSHPALATHA G., SMT. PREETHI RAMAMOHAN (REPRESENTED BY HER GPA HOLDER SMT. SHUBHA RAMMOHAN VERSUS STATE OF KARNATAKA BY THE STATE OF KARNATAKA REPRESENTED BY MALLESHWARAM, POLICE STATION, SATISH KUMAR B.P. [ 2021 (9) TMI 1373 - KARNATAKA HIGH COURT] where it was held that The complaint itself was not maintainable without the corporate entity being made as a party but having brought only the Board of Directors or the officers of the Company as accused. Petition disposed off. - Criminal Petition No. 2750/2022 - - - Dated:- 28-3-2022 - Maheshan Nagaprasanna , J. For the Appellant : C. H. Jadhav, Senior Counsel f .....

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..... r of cheque primarily falls on the drawee (sic drawer) company and is extended to the officers of the company and as there is a specific provision extending the liability to the officers, the conditions incorporated in Section 141 are to be satisfied. ... ... ... ... 50. However, it is noticeable that the Bench thereafter referred to the dictum in Sheoratan Agarwal [ (1984) 4 SCC 352: 1984 SCC (Cri.) 620] and eventually held as follows: (Anil Hada case [ (2000) 1 SCC 1: 2001 SCC (Cri.) 174], SCC p. 10, para 21) 21. We, therefore, hold that even if the prosecution proceedings against the company were not taken or could not be continued, it is no bar for proceeding against the other persons falling within the purview of sub-se .....

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..... nmistakably 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 responsibility. 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 . The said authority has been following by this Court in the case of SANJAY JAIN (supra). 11. A perusal of the complaints show that the petitioner is arraigned as an accused in his individual capacity, although his position as a Direc .....

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..... roceedings taken pursuant thereto also stands quashed. (iii) The respondent-State shall be at liberty to take appropriate action in accordance with law. 2. The said order is followed by this Court in Crl.P. No. 1836/2022 dated 15.03.2022 concerning the other accused. Petitioners are accused Nos. 1 and 2 in the very same Spl.C.C. No. 96/2016, which has been quashed by this Court for the reasons rendered therein. 3. For the very same reasons rendered in Crl.P. Nos. 5230/2018 and 6256/2018 while disposing it on 14.09.2021 and in the light of the facts and the legal issues being identical in the present petition, the petition is allowed and Spl.C.C. No. 96/2016 dated 22.02.2016 passed by the Principal City Civil and Sessions Judge, .....

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