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2023 (9) TMI 1247

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..... re against the impugned judgment and order dated 25.04.2023 passed by the learned Additional Judicial Magistrate First Class, Mehsana in Criminal Case No.11068 of 2016. By the said judgment and order, the learned Magistrate has recorded the acquittal of the present respondent nos. 1 to 7- original accused for the alleged offence punishable under Section 138 of the Negotiable instruments Act. 3. The case of the original complainant as contended in the original complaint is that the applicant is the manufacturer and suppliers of Mirror Glass Beads to the market and respondent - original accused has purchased Mirror Glass Beads from the applicant. It is contended in the complaint that in the year 2013 the respondent - original accused had com .....

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..... ts Act by issuing legal notice upon the respondent no.1 on 1.7.2014, which was denied and returned on 7.7.2014. Thereafter, another legal notice was sent upon the respondent nos. 2, 3, 5 and 6 on 5.7.2014 and 09.07.2014. The said notice was duly served upon the respondents-accused. Thereafter, another legal notice was sent upon the respondent no.4 and same was returned with an endorsement owner not available. That thereafter another legal notice was sent upon the respondent no.7 on 10.07.2014, which was denied and returned. The complainant had, therefore, approached the Court of learned Judicial Magistrate First Class, Danta by lodging complaint under Section 138 of the Negotiable Instruments Act. The said complaint was registered as Crimin .....

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..... as party respondent - original accused in the original complaint which has resulted into the dismissal of complaint in view of the mandatory provision of Section 141 of the Negotiable Instruments Act. Learned advocate has invited attention of this Court to the reasons assigned by the learned Magistrate while recording impugned order of acquittal. He has further placed reliance upon the grounds raised in the present appeal. The attention of this Court was also invited to the nature of transaction. He has urged this Court to grant leave to appeal and had urged to re-examine the issue at the final hearing stage of the appeal. 6. Having noticed the case of the complainant and having perused the impugned order, the only question which falls fo .....

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..... 141 of the Negotiable Instruments Act. Section 141 of the Negotiable Instruments Act reads as under: "Section 141: Offences by companies. - (1) If the person committing an offence under section 138 is a company, every person who, at the time the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any person liable to punishment if he proves that the offence was committed without his knowledge, or that he had exercised all due diligence to prevent the commission .....

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..... our aforesaid analysis, we arrive at the irresistible conclusion that for maintaining the prosecution under Section 141 of the Act, arraigning of a company as an accused is imperative. The other categories of offenders can only be brought in the dragnet on the touchstone of vicarious liability as the same has been stipulated in the provision itself. We say so on the basis of the ratio laid down in C.V. Parekh (supra) which is a three-Judge Bench decision. Thus, the view expressed in Sheoratan Agarwal (supra) does not correctly lay down the law and, accordingly, is hereby overruled. The decision in Anil Hada (supra) is overruled with the qualifier as stated in paragraph 51. The decision in Modi Distilleries (supra) has to be treated to b .....

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