SATHYANARAYAN SRIRAM Vs. M/S. STCL LTD. 166/2, 13TH MAIN ROAD VASANTH NAGAR BANGALORE - 560052 REP. BY MR. N. DEVARAJE GOWDA GENERAL MANAGER - [FINANCE AND ADMIN] K.L. ANAND SAI GENERAL MANAGER- [MARKETING]

JUDGEMENT

(1.) HEARD the Learned counsel for petitioner.

(2.) THE petitioners have sought for quashing the proceedings interalia contending that they had ceased to be the Directors of M/s. Future Metal Pvt. Ltd., when the cheques were issued by the Managing Director of said company.

(3.) I have gone through the averments of complaint. In Para 14 and 15 of the complaint, it is stated thus: 14. The complainant submits that accused No. 2 to 8 herein arc the Directors of accused No. 1 as on 31.12.2008 and hence are arrayed as accused No. 2 to 8 in these proceedings. The complainant submits that as the accused No. 2 to 8 being the Directors of M/s. Future Metals Pvt. Ltd., had entered into Back to Back Contract for Merchandising Trade Contract, and had also provided the Deed of Personal and Corporate Guarantee to the complainant and are responsible for the debt/liability. The complainant submits that consequently accused No. 2 to 8 persons herein as Directors of accused No. 1 company have become liable for the amount due and payable to the complainant arising pursuance to the contracts (Documents No. 3 to 5) and amounts due pursuance to the Letters of Credit (Document No. 9 to 11) established and devolved. 15. The complainant submits that accused No. 2 to 8 being Directors of accused No. 1 company and having authorized the execution of Back to Back Contract for Merchandising Trade with complainant and further having also authorized the execution and providing the complainant with Deed of Personal and Corporate Guarantee being persons who at the time the offence was committed to be incharge of and responsible to the accused No. 1 company and for the conduct of the business of accused No. 1 company are liable to be proceeded against under Section 141 of the N.I. Act.