Citation Text

Quashing of Criminal Proceedings – Vicarious Liability – Negotiable Instruments Act, 1881 (N.I Act) – Sections 138 and 141 – Code of Criminal Procedure, 1973 – Section 482 – Complaints made against Appellant alleging that when cheque of company stood dishonoured Appellant was in charge of affairs of company – Whether or not Appellant liable for prosecution under Section 138 read with Section 141 of N.I. Act – No, two persons were inducted as Director, Operations of Company by virtue of resolution – Respondent No. 2 well aware of change of Directors in accused Company – In spite of knowing that Appellant was no longer Director of Company and two new Directors were inducted, Respondent No. 2 chosen to array all of them as accused – Parties cannot be permitted to put criminal law into motion in order to settle scores between themselves –Role and manner of conduct of Appellant in the affairs of Company stands unexplained – Factum of Appellant resigning from Board of Directors established – In entire complaint, no specific role attributed to Appellant in commission of offence – Director who was not in charge and not responsible for conduct of business of Company at relevant time will not be liable for an offence under Section 141 of N.I. Act – Criminal proceedings quashed.