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TMI Blog2022 (1) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... itional Chief Metropolitan Magistrate, Secunderabad, stating that he was in the business of trading and supplying of medical equipments. A1 to A3, the Management of the Indus Hospitals, ordered one Siemens G-50 Color Doppler machine through one Mr. K. Chakravarthy, who was a freelancer as well as an Executive. The cost of the machine was Rs. 4,00,000/-, with tax of 5%, totalling Rs. 4,20,000/-. The said machine was ordered by A1 to A3 on 15.04.2013 and it was delivered and installed on 16.04.2013. A1 gave a cheque for Rs. 3.00 lakhs dated 01.05.2013 on 17.04.2013, stating that he was giving his personal cheque, as the account was not yet opened in the name of Indus Hospitals in Bank of India. On 01.05.2013, A1 to A3 asked the complainant no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see that no action would be taken. However, the complainant chose to take action against the accused instead of Chakravarthy. The accused did not know who was the complainant, and they neither contacted him nor dealt with him at any point of time. The petitioners were not the drawers of the cheque and they never issued the same. As the complaint did not disclose about the alleged vicarious liability of the accused in the absence of details in the complaint that the accused was a Company or Corporation or a Legal Entity and that the other accused were accordingly concerned with the business of such Legal Entity, the provisions under Section 141 and 142 of the NI Act could not be invoked. A1 had absolutely no connection whatsoever in the affa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at when a person which is a company commits an offence, then certain categories of persons in charge, as well as the company would be deemed to be liable for the offence under Section 138. Thus, the statutory intendment is absolutely plain. The provision makes the functionaries and the companies to be liable and that is by deeming fiction. A deeming fiction has its own signification. 53. It is to be borne in mind that Section 141 of the Act is concerned with the offences by the company. It makes the other persons vicariously liable for commission of an offence on the part of the company. As has been stated by us earlier, the vicarious liability gets attracted when the condition precedent laid down in Section 141 of the Act stands satisfie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose that it was issued by Sri M. Madhusudhan Reddy, who was shown as A2, on behalf of Indus Hospitals. This petition is filed by only Accused Nos.1 and 3, who are not signatories to the said cheques which are returned / dishonoured. As per Section 138 of the NI Act, the emphasis has been laid on the fact that the cheque has to be drawn by a person on the account maintained by him. He must have issued the cheque in discharge of any debt or other liability. As the petitioners are not the persons, who had drawn the cheque and they were not shown as the persons who were maintaining the account in the bank and that they had issued the subject cheques in discharge of their liability, continuation of the proceedings against them is considered as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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