Gujarat Oleo Chem Ltd. & Ors. v. State & Anr.

Delhi High Court · 29 May 2013 · 2013 DHC 6621
Kailash Gambhir
CRL.M.C.2213/2013 & CRL.M.A. No. 8559/2013
2013:DHC:6621
criminal appeal_allowed Significant

AI Summary

The Delhi High Court held that prosecution under Sections 138 and 141 of the Negotiable Instruments Act can only be initiated against a company if it is the drawer of the cheque, and quashed summons against Gujarat Oleo Chem Ltd. when cheques were signed by an individual director in his personal capacity.

Full Text
Translation output
$ $-33, L4to 19 HIGH COURT OF DELHI CRL.M.C.221312013 & Crl.M.A. No. 855912013
GUJARAT OLEO CHEM LTD. & ORS. ..... Petitioners
Through Mr. Abinash K. Mishra, Adv.
VERSUS
STATE & ANR. ..... Respondents
Through Mr. Navin Sharma, APP for the State.
#J;i3X?ll'fi ;U*f,J;:'ii* <t for R-2.
AND
CRL.M.C.333/2010 & Crl.M.A. Nos. 1186/10, 785512013
GUJARAT OLEO CHEM LTD & ORS..... Petitioners
VERSUS
STATE & ANR.r... Respondent Mr. Jayant K. Sood, Mr. Vishal Dabas and Mr. Ujas KUmar, Advs. for R-2.
AND
CRL.M.C.33412010 & Crl.M.A. Nos. 785712013. 1188/10
GUJARAT OLEO CHEM LTD & ORS 2013:DHC:6621 \q \\
VETSUS
STATE & ORS
Through Mr. Navin Sharma, App f;; tl*espondent for R-2.
AND
CRL.M.C.35312011 & Crl.M.A. Nos. 7856/2013, 1387/20t1
GUJARAT OLEO CHEM LTD. & ORS.
VERSUS
STATE & ANR.
Through Mr. Navin sharma, App f;;;:tr1n"?lo*' for R-2.
AND
CRL.M.C. 4034/2011 & Crl.MA Nos. 18852/2011 and 7858/2013
VCTSUS
4' STATE & ANR..... Respondent for R-2.
AND
CRL.M.C. 4035/2011 & Crl.M.A. Nos. 7860/2013. 18855/2011
Throueh Mr. Abinash K. Mishra. Adv.
VERSUS
STATE & ANR..... Responcient for R-2.
AND
CRL.M.C. 403612011 & Cr1.M.A. Nos. 786112013.1885712011
Guranar oLEo cHEM LTD & oRS..... Petitioners
VERSUS
STATE & ANR..... Respondent Yo for R-2.
CORAM:
HON'BLE MR. JUSTICE KAILASH GAMBHIR
29.05.20t3 . By this order I propose to dispose of these petitions filed by the petitioners against the respondents. Mr. Abinash K. Mishra, counsel appearing for the petitioners submits that the controversy raised in these petitions is squareiy covered by the
ORDER
of this Court passed in the case of Manish Kant Aggarwal vs National Agricultural Cooperative
Marketing Federation of India Ltd. NAFED) & Anr. Reported in 156

(2009) DLT 415 and another judgment of this Court passed in Crl.M.C. NO. 3781/2009 on 16th December,zX[g.Counsel also submits that the judgment of this Court passed in Crl.M.C. No. 378112009 was between the same parties and the said order was never challenged by the respondents. Counsel for the petitioners further submits that after the said decision of this Court, respondent No.2 had filed various other complaint cases and.in those t- { t' complaint cases respondent No.2 has not impleaded the petitioners. Counsel for the petitioners has drawn attention of this Court to the details of all such, cases, enumerated in para (vii) of the grounds of these petitions. Based on the above submissions, counsel for the petitioners submits that the pelitioners have no objection if the respondent No. 2 may continue with these complaint cases against Mr. Santosh Dheeraj pathak, ' who has signed the cheques in question in his individual capacity. Mr. Jayant K. sood, counsel appearing for respondent No.2 seeks time to file reply. Counsel also submits that so far the case of Manish Kant Aggarwal is concemed, aggrieved party had already filed sl-p bearing No. 1 8720/200gin the Hon'ble Supreme court. I have heard learned counsel for the parties. Indisputably, the cheques in question were signed by Mr. Santosh Dheeraj Pathak, who happens to be the chairman a'd Managing Director of \4/s Gujarat oreo chem Limited. on a perusar of the photocopy of the cheques piaced on record, it is quite manifest that these cheques have not been signed on behalf of the said company. This court in the case of Manish Kant Aggarwal vs N.A.G.M.F. of India, has already taken a view that the combined reading of Section 138 and Seition 141 of Negotrabie,rf t\,y/ Instpments Act, 1881 would clearly show that a drawer for such complaints based on the dishonoured cheques necessarily has to be a company itself and thereafter, the other question would arise as to which of the directors and other functionaries of the company were responsible for the conduct and affairs of the business of the company. It was also held that the prosecution against the Directors and other beneficiaries of the company would arise only when the company itself is the drawer of such dishonoured cheques and only then vicarious liability of the company would shift on such directors and other functionaries of the company and not otherwise. The said view taken by this Court has already been reiterated by the coordinate Bench of this Court in Crl. M.C. No. 3781/2009. ' In the background of the said legal position, this Court cannot take any different view as has earlier been taken by this Court in the said two judgments. The Cjourt is also not oblivious of the fact that the said order dated 16th December,2009 was not challenged by the respondent and rather thereafter, respondent No. 2 had filed various complaints only against Mr. Santosh Dheeraj Pathak in his individual capacity without irnpleading itr. petitioners herein. In the light of the above, these present petitions are allowed. r- {A The order of 'summoning dated 15.12.2008, 2r.7.200g, 16.10.2007, 26.9.2008,22.10.2009,7.r.2010 and 3.8.2009, passed against the petitioners are quashed. However, complaints filed by the respondents shall continue qua Santosh Dheeraj Pathak.

KAILASH GAMBHIR. J MAY 29,2013 rkr {