Skip to main content

Posts

Showing posts from August 7, 2013

Dis. Cheques - Speculative prosecution of Directors of the Company …

Dis. Cheques – Directors’ Crim. Liab – Injudicious approach so far … In this write up, I intend to deal with an issue which I think is not judiciously dealt with, although there are hundreds of precedents which otherwise have dealt with the issue. Recently I had happened to closely witnessed a case of offence u/s 138 of of Negotiable Instruments Act, 1881, i.e., of dishonoured cheque, wherein in the Complaint, it was barely averred that the “…. are Directors of the Company and are in-charge of the day to day affairs of the business of the accused company”, and the Magistrates Court happily issued processes (Summons) against all those Directors. The Directors therein preferred Revision Application before the Sessions Court, thereby challenging the issuance of said Summons. The said Revision was founded on the grounds that the impugned Order passed by the Ld. Magistrate is in breach of the mandate of Section 204 of