Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Negotiable Instruments Act ss. 138 and I 4 I |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Negotiable Instruments Act; ss. 138 and I 4 I:Dishonour of Cheque-Vicarious liability of director for commission of offences on the part of a Company-Held: Director liable only in the event condition precedent therefor in s. 141 of the Act satisfied-Cheques in question not issued by appellant/director-No averments made in the complaint petition as to the manner, he was responsible for the conduct of business of company-Specific allegation requires to be made against the Director to make him vicariously liable in terms of provisions of law -Allegation/averments in the petition do not disclose any offence as against the appellant, Director-Proceedings against him, therefore, should D have been quashed by High Court-Hence impugned judgment cannot be sustained and set aside.Respondent no. 2, a manufacturer supplied its product to a Company. Allegedly, a sum of Rs. 13,36,923 was due and payable to respondent no.2 by the Company. The Company issued three cheques in favour of the complainant. The cheques were dishonoured. A complaint petition came to be filed by respondent no.2 against the Company, Managing Director and other directors, including the appellant. Cognizance was taken against the appellant and other accused persons. Applications for quashing the orders taking cognizance of the offence in the complaint petitions were filed by the appellant before the High Court, which were dismissed by it. Hence the present appeal.Appellant contended that the averments made in complaint petitions even if given face value and taken to be correct in their entirety they do not constitute an offence as against the appellant in terms of Section 141 of the Negotiable Instruments Act; and that in any event, the appellant having resigned from the directorship of the Company, the complaint petitions as against him were not maintainable.Respondents submitted that the appellant had not disclosed as to when the resignation purported to have been submitted by him was accepted by the Company and in that view of the matter the complaint petitions were maintainable. |
Judge | Hon'ble Mr. Justice S.B. Sinha |
Neutral Citation | 2007 INSC 41 |
Petitioner | Saroj Kumar Poddar |
Respondent | State (nct Of Delhi) & Anr. |
SCR | [2007] 1 S.C.R. 907 |
Judgement Date | 2007-01-16 |
Case Number | 70 |
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