LAWS(MAD)-2009-7-283

S RAJASARAVANAN Vs. E J PROSPER

Decided On July 08, 2009
S. RAJASARAVANAN Appellant
V/S
E.J. PROSPER Respondents

JUDGEMENT

(1.) THIS Criminal Original Petition is filed to quash the proceedings in CC.No.958/2005 on the file of the Judicial Magistrate II, Pondicherry in so far as the petitioner/A2 is concerned.

(2.) THE brief facts, which are necessary for the disposal of this Criminal Original Petition, are as follows:-THE Respondent herein has filed the private complaint against the Petitioner for the offence under Section 138 and 142 of the Negotiable Instruments Act. As per the averments made in the complaint, the Petitioner's brother/A1 had received a sum of Rs.1,00,000/- from the complainant for his business and in consideration of the same, he issued a cheque dated 10.4.2005 drawn on State Bank of Trivancore, Pondicherry. THE complainant presented the cheque for collection on 29.6.2005 and the same was returned on the ground that the account has been closed. THE complainant had issued a statutory notice to the 1st accused through his lawyer on 6.7.2005 and the same had been returned with an endorsement "as refused". Hence, he has filed the present complaint against A1 and the Petitioner, who is arrayed as A2.

(3.) THE question as to whether a Director or Partner of a Company would become vicariously liable was discussed in the decision of the Three-Judges Bench of this Court in the case of S.M.S.Pharmaceuticals Limited Vs. Neeta Bhalla and another (2005-5-CTC-65), wherein upon consideration of a large number of decision in that regard, Apex Court opined:-