NIRANJAN PRASAD SINHA Vs. SHRIDHAR STEELS (P) LTD

JUDGEMENT

(1.) The applicant, who is arrayed as accused in Complaint Case 24311/2017, is seeking quashment of the order dated 07-2-2018 of issuance of process for offence punishable under Section 138 of the Negotiable Instruments Act, 1881.

(2.) Shri Sushil Nimbhar, learned Counsel for the applicant would submit that the complaint lacks the basic averments necessary to clothe the Magistrate with the jurisdiction to issue process for offence punishable under Section 138 of the Negotiable Instruments Act ("Act" for short). The submission is that Section 141 of the Act, by deeming fiction makes a director or partner vicariously liable for the offence committed by the company or firm, provided that the director or partner is responsible to the company or firm for conduct of business. The submission is that the averments in the complaint do not satisfy the test of Section 141 of the Act inasmuch as only bald averments are made without spelling out how and in what manner the applicant is responsible for the conduct of the business of the company. In rebuttal, Shri Masood Sharif, learned Counsel for the non-applicant- complainant would submit that it is not necessary to spell out the specific role of the director qua the transaction and it would suffice if the complaint incorporates the basic averments that the director is responsible to the company for the conduct of its business.

(3.) In the context of the rival submissions, scrutiny of the averments in the complaint is in order. Paragraph 2 of the complaint reads thus :