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TMI Blog2021 (3) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... e clearly shows that it is the drawer of the cheque who is deemed to have committed the offence under the section. It follows therefore that the offence if at all, in the case on hand can be said to have been committed only by the company. If the company is deemed to have committed the offence, necessarily, going by Section 141 of the Negotiable Instruments Act, the company should have been made a party to the proceedings and it is only on finding that the company has committed the offence, that the Managing Director could have been made liable for the offence. The appellant is not entitled to contend that the offence has been committed by the Managing Director. Admittedly, the cheque is not drawn on a personal account maintained by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was returned dishonored with an endorsement insufficient funds . It is thereafter that the complaint under Section 138 of the Negotiable Instruments Act has been filed. 3. The 1st respondent denied the transaction complained of. The Court below after considering the evidence on record found that, the cheque in question has been issued from the account of M/s. Gramy Rubbers India Limited (hereinafter referred to as the company) and that it has been signed for and on behalf of the company by its Managing Director, P. Muhammed Alavi who is the 1st respondent. A contention is advanced by the appellant that the loan that was advanced was a personal loan to Mr.Muhammed Alavi and it was not a transaction between the complainant and the Compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... honour of cheque for insufficiency, etc., of funds in the account.--Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an arrangement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may be extended to two years, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o is deemed to have committed the offence under the section. It follows therefore that the offence if at all, in the case on hand can be said to have been committed only by the company. In CRL.A.No.774 OF 2006 Mainuddin Abdul Sattar Shaikh v. Vijay D.Salvi, reported in (2015) 9 SCC 622, the apex Court in paragraph 9 held that for maintaining a complaint under Section 138 of the Negotiable Instruments Act, it is necessary that that the person who is to be made liable should be the drawer of the cheque and he should have drawn the cheque on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for discharge in whole or part, of any debt or other liability. If the company is de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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