NATIONAL SMALL INDUSTRIES CORPORATION LTD Vs. HARMEET SINGH PAINTALAND OTHERS
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Head Note
The Negotiable Instruments Act, 1881 - Section 138 , Section 141
- Dishonour of cheque - Averments in the complaint - Liability arises from being in-charge of and responsible for the conduct of the business of the company at the relevant time - Not on the basis of merely holding a designation or office in a company - Complaint should spell out as to how and in what manner Director was in-charge of or was responsible to the accused company for the conduct of its business - Primary responsibility is on the complainant to make specific averments so as to make the accused vicariously liable - Appeals dismissed.
The Negotiable Instruments Act, 1881 - Section 138 , Section 141
Complaint u/s. 138 - Dishonour of cheque - Liability of Director of company - Magistrate summoned the accused persons - Application by respondent/director of company for dropping of proceedings dismissed - Petition u/s. 482, CrPC - HC quashing the summoning orders passed against respondent - Absence of specific averment as to the role of the respondents - Materials that at the relevant time respondents were in no way connected with the affairs of the company - Appeals dismissed.
The Negotiable Instruments Act, 1881 - Section 138 , Section 141
Dishonour of cheque - Vicarious liability - Averments in petition - Vicarious liability on the part of a person must be pleaded and proved and not inferred - Vicarious liability can be inferred against a company only if the specific averments are made to make accused vicariously liable for offence committed by company - If accused is a Director or an Officer of a company who signed the cheques on behalf of the company then also it is not necessary to make specific averment in complaint - Appeals dismissed.
Topic(s)-Dishonour of Cheque , Liability of Director of Company , Vicarious Liability
Important Decision(s)- Vicarious liability on the part of a person must be pleaded and proved and not inferred.