Negotiable Instruments Act, 1881 – Section 138, 141 – Quashing not allowed – Prima facie case – Complaint of dishonour of cheque – Vicarious liability – The petitioner, an Executive Director of the company, contended that he ceased to be an authorized signatory at the time of issuance of the cheque, thus challenging his liability under Section 138. The Court examined the principles guiding the exercise of jurisdiction under Section 482 of the Code of Criminal Procedure, 1973 (Cr.P.C.), emphasizing the need for sparing and circumspect use of such powers. Citing precedents, the Court highlighted that the threshold for quashing criminal proceedings is high and should only be exercised when no offence is prima facie constituted.
The petitioner relied on documents to establish the absence of authorization at the time of issuance of the cheque. However, the Court held that in proceedings under Section 482, only the complaint and accompanying documents should be considered, prohibiting the introduction of fresh evidence. It further affirmed the liability of signatories under Section 141 of the NI Act, emphasizing their responsibility for the conduct of the company’s business. Thus, the petition for quashing was dismissed. (Para 19)
HIGH COURT OF HIMACHAL PRADESH
2023 STPL(Web) 375 HP
[2023 HHC 13906]
A.K. Aggarwal Vs. Vijender Kumar Jain And Others
Cr. MMO No.1259 of 2022-Decided on 07-12-2023
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