Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1881 NEGOTIABLE INSTRUMENTS ACT |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Code of Civil Procedure, 1908 (5 of 1908) Negotiable Instruments Act, 1881 (26 of 1881) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | NEGOTIABLE INSTRUMENTS ACT, 1881:ss. 138 and 141(1) -Vicarious liability of Director of a company -Complaints against a Company for dishonour of cheques -Metropolitan Magistrate directing summons to issue to accused -Revision petitions by one of the Directors contending that he had resigned as Director of the Company before issuance of the cheques by it-Held :The words "every person who, at the time of the offence was committed", occurring in s.141 are not without significance, and indicate that criminal liability of a Director must be determined on the date the offence is alleged to have been committed. Director whose resignation has been accepted and notified to Registrar of Companies, cannot be made accountable for the acts of the company committed after his resignation. Complaints against Director concerned quashed. Companies Act, 1956 -s.303 -Code of Criminal Procedure, 1973-ss.397, 401 r/w s. 402.CODE OF CRIMINAL PROCEDURE, 1973: Section 397 r/w ss. 401 and 482 -Revisional jurisdiction of High Court -Complaints filed against a company and its officers for dishonour of cheques issued by the company . Metropolitan Magistrate directing summons to issue. Revision petitions filed by one of the Directors of the company seeking to quash the proceedings against him as he had resigned before the cheques were issued by the company. Dismissed by High Court. Held : High Court fell into grave A error in not taking into consideration tho uncorroborated documents relating to resignation of the Director concerned. On the date the offence was committed by the Company the revision-petitioner was not the Director and he had nothing to do with the affairs of the Company -Therefore, if the criminal proceedings are allowed to proceed against him, it would result in gross-injustice to him and would be tantamount to abuse of process of the court Judgement of the High Court and the order of the Magistrate directing summons to issue to Director concerned are set aside and complaints against him quashed -Negotiable Instruments Act, 1881 -ss. 138 and 141(1) -Administration of Criminal Justice. |
Judge | Honble Mr. Justice R. M. Lodha |
Neutral Citation | 2011 INSC 111 |
Petitioner | Harshendra Kumar D. |
Respondent | Rebatilata Koley Etc. |
SCR | [2011] 2 S.C.R. 670 |
Judgement Date | 2011-02-08 |
Case Number | 360-377 |
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