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Head Note

The Negotiable Instruments Act, 1881  - Section 138 , The Code of Criminal Procedure, 1973  - Section 378 (4)

Dishonour of Cheque - Offence by Company - Complaint - Acquittal - Leave to appeal - Dismissal by High Court - Respondent has adduced the argument that in the complaint the appellant has not taken the averment that the accused was the person incharge of and responsible for the affairs of the Company - Held that as the respondent was the Managing Director of and sole proprietor of M/s. Salvi Builders and Developers, there is no need of specific averment on the point - Respondent be made liable under Section 138 of the NI Act, even though the Company had not been named in the notice or the complaint - There was no necessity for the appellant to prove that the said respondent was incharge of the affairs of the company, by virtue of the position he held - Respondent is liable for the offence under Section 138 of the NI Act.

Topic(s)-Dishonour of Cheque - Vicarious Liability - Managing Director Liable ,  Conviction