P.D.GUPTA Vs. ECE INDUSTRIES LTD

JUDGEMENT

(1.) By virtue of these two Petitions, the Petitioners who have been prosecuted for an offence punishable under Section 138 of the Negotiable Instruments Act, 1882 (the Act) invokes inherent powers of the Court under Section 482 of the Code of Criminal Procedure (Cr.P.C.) for quashing of the complaint dated 23.06.2011 mainly on the premise that they had ceased to be Directors of M/s. Twilight Litaka Pharma Limited, who according to the Respondent was guilty of committing an offence under Section 138 of the Act and the Petitioners were vicariously liable as Directors thereof being and in charge of and responsible for the conduct of its business to the company.

(2.) The Petitioners' plea is that since they ceased to be the Directors much before the issuance of the cheques, which according to the complainant were dishonoured, they cannot be fastened with the liability as Directors of the company.

(3.) As per the averments made in the complaint an inter corporate loan of Rs. 2,25,00,000/- was granted in favour of M/s. Twilight Litaka Pharma Limited. A cheque bearing No.191060 dated 21.04.2011 for Rs. 1 crore and another cheque No.191062 dated 28.04.2011 for Rs, 1.25 crores both drawn on the State Bank of India, Empire House Branch, Fort Mumbai were issued by the said M/s.Twilight Litaka Pharma Limited towards discharge of the liability. In addition, two cheques towards payment of interest were also given which were admittedly honoured on presentation.