SHAM SADASHIVA WAGH Vs. MULEY CONSTRUCTIONS PVT LTD

JUDGEMENT

(1.) These are applications filed by these Directors of a Private Company for quashing of proceedings initiated by way of complaint filed by respondent No. 1 and registered as SCC No. 3396/2006 M. Mule Construction Pvt. Ltd. v. Galaxy Laboratories Put. Ltd. And others in commission of offence under section 138 of the Negotiable Instruments Act. They are challenging issuance of process and the proceedings initiated against them.

(2.) Respondent No. 1 filed a private complaint case in the Court of Chief Judicial Magistrate, Aurngabad which is registered as SCC No. 3396/2006. The applicants are said to be Directors of M/s. Galaxi Laboratories Private Limited i.e. accused No. 1 Company. The averments in the complaint would show that the Managing Director who is accused No. 2 Shrikant, issued the cheque in question dated 31st March, 2006. The cheque bounced. The respondent No. 1 issued demand notices. The demand notices were served. Subsequently, since no payment was made within the prescribed period, the complaint for offence under Section 138 of the Negotiable Instruments Act was filed.

(3.) The contentions of the applicants herein stand on different footings. According to applicant Sham Wagh, he resigned as Director of the Company on 1st January, 2006 though subsequently, Form No. 32 was accepted belatedly on 28th June 2006. He was unconcerned with the business of the Company since 2nd January, 2006 and, therefore, cannot be vicariously liable for the financial implications. He alleges that he was not signatory of the cheque nor was concerned with the payment in question and, therefore, is not vicariously liable.