Negotiable Instruments Act, 1881
Sections 138 & 141(1)—Dishonour of cheque—Vicarious liability of director—Challenge to the order taking cognizance of complaints filed by first respondent—Appellant is not a signatory to the cheque—It is only the signatory of the cheque is liable under Section 138 of the Negotiable Instruments Act, unless the case is brought within the four corners of Section 141 of the Act, no other person can be held liable—There are twin requirements under sub-section (1) of Section 141 of the Act—In the complaint, it must be alleged that the person, who is sought to be held liable by virtue of vicarious liability, at the time when the offence was committed, was in charge of, and was responsible to the company for the conduct of the business of the company—A director who is in charge of the company and a director who was responsible to the company for the conduct of the business, are two different aspects—Requirement of law is that both the ingredients of sub-section (1) of Section 141 of the Act must be incorporated in the complaint—Admittedly, there is no assertion in the complaints that the appellant, at the time of commission of the offence, was in charge of the business of the company—Appellant cannot be prosecuted with the aid of sub-section (1) of Section 141 of the 1881 Act—Impugned order set aside and order taking cognizance of complaints filed by first respondent stands quashed and set aside only as against appellant who is arraigned as third accused—Appeals allowed.
[Para 5]