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Issues involved: Interpretation of Section 141 of the Negotiable Instruments Act, 1881 in relation to the liability of individuals in a company for issuing cheques.
Summary: 1. The petition under Section 482 of the Code of Criminal Procedure challenged the summoning order of the petitioner as accused No. 3 in a case involving cheques issued by Gin Company Ltd. The petitioner, not being an employee or having authority to issue cheques on behalf of the company, argued against being roped in under Section 141 of the Negotiable Instruments Act, 1881, which pertains to company offenses. The court found that the petitioner, not being a director, manager, or officer of the company, was not responsible for the company's business conduct, and thus set aside the summoning order for the petitioner. 2. The complainant contended that the petitioner acted as the company's agent in India and conducted business on their behalf, falling within the scope of Section 141 of the Act. However, the court clarified that Section 141 imposes liability on individuals in juristic persons like companies, such as directors, managers, secretaries, or officers. Since the petitioner did not hold such a position and was not responsible for the company's business conduct, the summoning order against the petitioner was quashed.
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