G D NATARAJ BABU Vs. BHARAT TRADERS

JUDGEMENT

(1.) The petitioner who is the 5th accused and who faces prosecution for offence under Sections 138 and 141 of the Negotiable Instruments Act (hereinafter referred as Act) in C.C.No.7179 of 2002 on the file of the VII Metropolitan Magistrate, George Town, Chennai has preferred this petition to quash proceedings against him.

(2.) In the complaint case, there are five accused. The 1st accused being a company, the 2nd accused being the Chairman, the 3rd accused, the Managing Director and the accused 4 and 5, the directors thereof. On the dishonour of a cheque issued by the 1st accused company in a sum of Rs. 2,23,209/- which was presented for payment on 16.10.2002, the respondent/complainant had followed the procedure envisaged under Section 138 of the Act and preferred the complaint before the lower Court. It is also seen from the complaint that the petitioner was the signatory of the cheque which gave rise to the complaint case.

(3.) The learned counsel for the petitioner submits that the petitioner/5th accused herein who was a Director of the 1st accused company had resigned from such capacity as early as on 24.08.2000 and has produced for perusal of this Court the certified copy of Form-32 filed with the Registrar of Companies in support of such contention. The contention is that when the petitioner has resigned much prior to the issue of the cheque, he cannot by any stretch of reasoning be held to be responsible to the 1st accused company in the conduct of its affairs and as such he could not be arrayed as an accused through recourse to the provisions of Section 141 of the Act.