Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Code of Criminal Procedure 1973 |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Code of Criminal Procedure, 1973: s. 482 – Quashing of proceedings – Dishonour of cheque – Account Payee Cheque signed by accused no. 2, who was M.D. of the Company in favour of respondent in discharge of liability – On dishonour of cheque, respondent filed complaint u/s.138 r/w s. 141 of NI Act – In the complaint, appellants who were independent/non-executive director were impleaded as accused no. 3 to 5 – Appellants unsuccessfully filed application in High Court u/s. 482 praying that the proceeding be quashed – Hence instant appeal – Held: Jurisdiction u/s. 482 must be exercised if the interest of justice so requires – High Court failed to appreciate that none of these appellants were Managing Director or Joint Managing Director of the Accused Company – Nor were they signatories of the cheque which was dishonoured – A Director of a company who was not in charge or responsible for the conduct of the business of the company at the relevant time, will not be liable u/s. 139 r/w. 141 of NI Act – The materials on record clearly show that these appellants were independent, non-executive Directors of the company – High Court adopted a hyper technical approach in rejecting the application u/s. 482 – High Court erred in law in not exercising its jurisdiction u/s. 482 in the facts and circumstances of this case to grant relief to the appellants – Companies Act, 2013 – ss. 2(47), 149 and 150 – Negotiable Instrument Act, 1881 – ss. 139,141. |
Judge | Hon'ble Ms. Justice Indira Banerjee |
Neutral Citation | 2022 INSC 775 |
Petitioner | Sunita Palita & Others |
Respondent | M/s Panchami Stone Quarry |
SCR | [2022] 14 S.C.R. 458 |
Judgement Date | 2022-08-01 |
Case Number | 1105 |
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