MAHENDRA PRATAP SINGH RATRA Vs. N K METALS

JUDGEMENT

(1.) In this petition under Section 482 CrPC, the petitioners pray for setting aside of the order passed by the learned Metropolitan Magistrate on 17 August 1996, directing framing of charge against them under Section 138 of the Negotiable Instruments Act,1881 (for short the Act).

(2.) M/s.Mahendra Steel Tubes Limited, accused no.1, issued certain cheques signed by its Chairman-cum- Managing Director, accused no.2, in favour of respondent no.1 for purchasing certain goods from them. The said cheques, on presentation, were received back un-paid with the remark "insufficient funds". Thereupon, a legal notice was issued on behalf of respondent no.1 to the aforenoted company demanding payment and there being no response to the notice, a complaint under the said section was filed against the company, and its three directors, viz. the Chairman-cum-Managing Director and the petitioners, the other two directors of the company. After pre-summoning evidence, all the named accused were summoned and charge under Section 138 of the Act was framed against all of them.

(3.) The present petition has been filed by the two directors (other than Chairman-cum-Managing Director) assailing framing of charge against them on the ground that they never were incharge of the conduct of the business of the accused company and, therefore, cannot be made vicariously liable for an offence committed by it.