Independent director, who is not a signatory shall not be liable for cheque bounce in case of general complaint : Delhi HC
FEMA, BANKING & INSURANCE/COMPANY LAW : Vicarious prosecution of independent director for cheque bounce by co. to be quashed when he was not signatory of cheque & only general allegations made in complaint.
• Where only general allegations have been made against all the directors of the accused company that they were in charge of managing the day to day affairs of the Company and at the helm of the affairs of the company and there were no specific averments or allegations carving out a specific role attributable to petitioner in relation to conduct of business of accused company, the petitioner-director cannot be made vicariously liable criminally for dishonour of cheque of company not signed by him and there being material on record to show that he was an independent director in the company.
• Such mere general allegation or bald assertion may be sufficient to implicate the Managing directors as well as those who are signatories to cheque, but not the other directors or persons, especially independent or non-executive directors .In absence of any specific averments or allegations carving out a specific role attributable to petitioner in relation to conduct of business of accused company, merely making bald statements that all the accused persons/directors were incharge and responsible for the day to day affairs of the company, does not suffice to make the petitioner herein vicariously liable for dishonouring of the cheques not signed by him and there being material on record to show that he was an independent director in the company.
• In view thereof, the impugned order dated 28.11.2018 passed by the learned MM-04, Patiala House Courts, New Delhi in CC No.16201/2017 is thus, quashed to the extent of issuing of summons to the present petitioner for alleged commission of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881.
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HIGH COURT OF DELHI
Prakash Chand
v.
State
MS. SWARANA KANTA SHARMA, J.
CRL.M.C. NO. 307 OF 2020
DECEMBER 19, 2022
Sanjay Relan and Ms. Smitee Relan, Advs. for the Petitioner. Satish Kumar and Devashish Bhadauriya, Advs. for the Respondent.
**ADV MEGHA** ALL RIGHTS RESERVED.
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