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TMI Blog2017 (11) TMI 1996X X X X Extracts X X X X X X X X Extracts X X X X ..... of the respondents. However, in the present case, the allegation is that the firm along with its partners is responsible. Here there is no allegation that the applicants are in charge and responsible for day to day business of the firm. The basic allegation required for prosecuting the applicants is missing in the complaint and the applicants cannot be prosecuted merely because they are the partners in the firm - the complaint filed against the applicants under Section 138 of Negotiable Instruments Act is liable to be dismissed as it lacks basic allegation against the applicants. Application allowed. - M.Cr.C. No. 1758/2015 - - - Dated:- 14-11-2017 - G.S. Ahluwalia, Judge Shri Rahul Diwakar, Counsel for the applicants. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15. After so stating, the Court adverted to the complaint filed under Section 138 of the Act and opined that the complaint should make out a case for issue of process. As far as the officers responsible for conducting the affairs of the company are concerned, the Court referred to various provisions of the Companies Act, 1956 and analysed Section 141 of the Act to lay down as follows: (S.M.S. Pharma I case, SCC pp. 98-99, para 10) 10. What is required is that the persons who are sought to be made criminally liable under Section 141 should be, at the time the offence was committed, in charge of and responsible to the company for the conduct of the business of the company. Every person connected with the company shall not fall within t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... jected to action. 16. After so stating, the Court in S.M.S. Pharma case placed reliance on sub-section (2) of Section 141 of the Act for getting support of the aforesaid reasoning as the said sub-section envisages direct involvement of any Director, Manager, Secretary or other officer of a company in the commission of an offence. The Court proceeded to observe that the said provision operates when in a trial it is proved that the offence has been committed with the consent or connivance or is attributable to neglect on the part of any of the holders of the offices in a company. It has also been observed that provision has been made for Directors, Managers, Secretaries and other officers of a company to cover them in cases of their prove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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