Criminal Prosecution Against Appellant Quashed Due to Res Judicata and Procedural Irregularities Under Section 420 IPC

SC held that the criminal prosecution against the appellant is unsustainable on multiple legal grounds. The proceedings were barred by res judicata as the underlying issues were conclusively determined in prior Negotiable Instruments Act proceedings. The court emphasized that Tyagi cannot maintain a prosecution based on allegations previously used as his own defense. Furthermore, the prosecution without arraigning the company was deemed impermissible, violating established principles of vicarious liability. The court reaffirmed that managerial position alone cannot justify criminal prosecution without specific allegations of direct involvement. Consequently, the SC allowed the appeal and quashed the criminal proceedings under Section 420 IPC, setting aside the summoning order for lack of judicial application of mind. .....

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