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Issues Involved:
The judgment involves the interpretation of Section 141 of the Negotiable Instruments Act regarding vicarious liability of individuals in a company for offenses under Section 138 of the Act. Details of the Judgment: Issue 1: Vicarious Liability of Company Secretary The petitioner, accused No. 5, sought to quash proceedings under Section 138 of the NI Act, arguing that he had resigned from the company before the cheques were dishonored and was not in charge of the company's affairs. The petitioner's counsel relied on precedents to support the argument that liability arises from being in charge of the business at the relevant time. Issue 2: Interpretation of Section 141 of the Act The court analyzed Section 141 of the Act, emphasizing that every person in charge of the company's business at the time of the offense is deemed guilty. The court highlighted the importance of strict compliance with the provision and the need for specific allegations to hold individuals responsible post-resignation. Conclusion: The court allowed the criminal petition, quashing the proceedings against the petitioner in C.C. No. 750 of 2000, as he was not in charge of the company at the time of the offense and had resigned before the dishonor of the cheques. The judgment reaffirmed that vicarious liability under Section 141 requires individuals to be responsible for the company's affairs at the relevant time of the offense.
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