S.SELVAKUMARI PERULMAL Vs. KAUSHAL REALTORS PVT. LTD.

JUDGEMENT

(1.) The Court of Metropolitan Magistrate, 43rd Court, Borivali, Mumbai as per judgment dtd. 5/2/2019 has acquitted Accused No.2 - Director of Accused No.1 for the offence under Sec. 138 of Negotiable Instruments Act, 1881. The complaint was filed against Kaushal Realtors Pvt. Ltd. - Respondent No.1 being the Company and Rajendra M. Rajan - Respondent No.2 being its Director. Though in the judgment and more specifically in paragraph 10, the learned Magistrate had given few reasonings about lapses of the complainant while writing down the final decision by way of operative order, he has not said anything about outcome of the case against Respondent No.1 - Company. This judgment of acquittal is challenged by the complainant.

(2.) Leave was granted and the Appeal was admitted on 2/12/2019. Issues involved in this appeal are :--

(3.) There is a reason to believe that there is some misunderstanding in the mind of the learned Judge about the provisions of the Companies Act. Though learned Judge was aware that the Company is managed by the Directors, in the first paragraph of the judgment and the operative order, he has made certain references which indicates the learned Judge was dealing with only against Accused No.2 (as a director)and has not dealt with Accused No.1 - Company. It is a settled law that any company is an artificial entity in the eyes of law and its business is managed and run by natural persons. Even as per Explanation (a) to Sec. 141 of the Negotiable Instruments Act, 1881, the meaning of the word "Company" is given as "any body corporate and includes a firm or other association of individuals".