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Issues Involved:
The judgment involves issues related to criminal complaint u/s 138 of the Negotiable Instruments Act, 1881, and the liability of directors and officers of a company u/s 141 of the same Act. Issue 1: Criminal Complaint u/s 138 of the Negotiable Instruments Act, 1881 The complainant, a public limited company, engaged in business with the accused-company for purchasing Caprolactam used for manufacturing Nylon Filament Yarn. The accused-company issued post-dated cheques worth a significant amount, which were dishonored upon deposit due to stopped payment. The complaint alleged mischievous and deliberate intentions by the accused to cheat the complainant, leading to the filing of the complaint in January 1996. Issue 2: Liability of Directors and Officers u/s 141 of the Negotiable Instruments Act, 1881 The applicant, a director of the accused-company, sought quashing of the complaint, arguing that as a non-executive director, he was not responsible for the business affairs and did not sign the cheques in question. The applicant referred to legal precedents to support his defense. However, the court emphasized that the liability of directors and officers under section 141 is determined by their roles and responsibilities within the company, as outlined in the complaint. Conclusion: The court rejected the application to quash the complaint, stating that the applicant, as a director, was responsible for the business affairs of the company based on the averments in the complaint. The court highlighted that the case should be decided based on the facts and circumstances presented, emphasizing that each case is unique. The court also directed that all pending cases under the Negotiable Instruments Act should be disposed of within six months to avoid delays.
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