National Housing Bank Act, 1987
Sections 29A read with Section 50—Quashing of complaint by High Court—Appeal—Complaint alleging commission of offence of violating provisions in Section 29A of the National Housing Bank Act—Magistrate gook cognizance of complaint for offence under Section 29A(1) read with Section 50 and punishable under Section 49(2A) of the 1987 Act—First accused is a company, second accused was described as the Managing Director of the first accused company and other five accused were described as the directors—Unless assertions, as required by sub-section (1) of Section 50 of the National Housing Bank Act, are made, vicarious liability of the directors of the first accused company is not attracted—In the absence of averments as contemplated by sub-section (1) of the Section 50 of the Act in the complaint, the trial court could not have taken cognizance of offence against the third to seventh accused, who are allegedly the directors of the first accused company—However, second accused being the Managing Director, would be in charge of the company and responsible to the company for its business—Therefore, there was no justification for quashing the complaint against second accused—First respondent is a company—No reasons have been assigned to quash the complaint against first accused—Impugned order modified to extent that complaint stand quashed as against third to seventh accused, however, complaint shall proceed according to the law against the first and second accused—Appeals are partly allowed.
[Paras 6 to 8]