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TMI Blog2022 (5) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... Class, Guntur. Petitioners in Criminal Petition No. 11172 of 2015 are A.3 to A.5 respectively, and the petitioners in Criminal Petition No. 3938 of 2016 are A.1, A.2 and A.6 respectively, in the Calendar Case. 2. 2nd respondent herein/complainant filed a private complaint against the petitioners/accused for the offences punishable under Sections 138 of the Negotiable Instruments Act, 1881 (for short, 'the Act, 1881') and 409 and 420 IPC. The allegations, in brief, of the complaint may be stated as follows: Complainant is a limited company registered under the provisions of the Companies Act, 1956. It used to purchase raw cotton/lint and convert the same into yarn in its spinning mill. It used to sell its lint in full pressed bales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fairs of the company. It is further submitted that no specific role has been attributed to each of the accused. The learned counsel relied on a judgment in SMS Pharmaceuticals Limited v. Neeta Bhalla & another. The learned counsel took this Court to various paragraphs of the said judgments and stated that it is essential that specific role has to be attributed in the complaint to each of the accused and merely saying that the accused are incharge of, and responsible to, the day to day affairs of the company would not suffice. 4. Per contra, learned counsel for 2nd respondent contended that there is specific accusation as against the petitioners/accused that they are incharge of, and responsible to, the company for day to day affairs of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.4 is their close friend, philosopher and guide; A.6 used to represent all other accused A.2 to A.5. It is further averred in the complaint that A.2 to A.6 are actively and physically participating in day to day business transactions of A.1 on their joint/collective/joint and several liability and responsibility in respect of all the matters and affairs of A.1 company and obligations, liabilities, responsibilities and third party claims of A.1. 7. The question that arises for consideration is merely stating the basic averments that a Director was incharge of, and responsible to, the conduct of business of the company, would suffice or else a specific accusation showing as to how such Director is responsible for conduct of business of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.-For the purposes of this section, - (a) "company" means anybody corporate and includes a firm or other association of individuals; and (b) "director", in relation to a firm, means a partner in the firm." 9. A perusal of Section 141 of the Act, 1881 i.e. offences by the companies, Section 141 (1) specifically contemplates that if the person committing the offence is a company, every person who at the relevant point of time, was incharge of, and was responsible to, the company for conduct of the business of the company, as well as the company, shall be deemed to be guilty of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 81 where the basic averments would suffice to come to a conclusion that they are responsible for conduct of the business of the company. In respect of these accused, it is not necessary that a specific role has to be attributed as against them in view of the complicity of the accused as prima facie case has been made out going by the accusation that contained in the complaint. 11. As far as A.6 is concerned, this Court feels that a specific role is attributed as against A.6. It is essential that a specific role has to be attributed in the complaint as against A.6 is concerned, for the reason that prima facie he comes within the purview of Section 141 (2) of the Act, 1881. A perusal of the complaint and the additional material papers which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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