K.K. Chug Vs. State and ors.

K.K. Chug vs State and ors.

Disposition Petition allowed Court Delhi Decided Apr 22, 1999

~2 min read

https://sooperkanoon.com/case/700416

For advocates & juniors · 7-day free trial

Brief this judgment before chambers

Stop skimming 50 pages - get an 18-section AI Brief on this case, ask scoped follow-ups, and find related precedents with Semantic Search. Full trial, no card required.

18-section brief - facts, issues, ratio, relief
Ask this case - answers cite the judgment
Semantic search - find precedents by meaning
Research drawer - sections, cites, related cases

Citation: sooperkanoon.com/700416
Court: Delhi High Court
Judge: S.N. Kapoor, J.
Decided On: Apr 22, 1999
Case Number: Crl. M.(M) No. 2610 of 1998
Subject: Commercial
Disposition: Petition allowed

Case Summary

AI-generated summary - not the official court judgment text.

Negotiable Instruments Act, 1881 - Section 138 & 141(1)--Dishonour of cheque--No allegation against Directors for that offence made by a company--Liability cannot be made--Cannot be prosecuted for that offence. - - In such circumstances, it is evident that since requirements of Section 141 of the Act as mentio...

Key legal issue: Commercial
Outcome / disposition: Petition allowed
Acts & sections: Negotiable Instruments Act, 1881 - Sections 134, 141 and 141(1)

Parties & Advocates

Appellant / Petitioner

K.K. Chug

Advocate J.L. Kalra, Adv

Respondent

State and ors.

Advocate V.P. Dalmia, Adv.

Legal References

Acts: Negotiable Instruments Act, 1881 - Sections 134, 141 and 141(1)
Cases Referred: and Prakash Industries Ltd. and Ors. v. Bajaj Auto Finance Ltd.
Reported In: 84(2000)DLT563; 2000(56)DRJ135

Excerpt

negotiable instruments act, 1881 - section 138 & 141(1)--dishonour of cheque--no allegation against directors for that offence made by a company--liability cannot be made--cannot be prosecuted for that offence. - - in such circumstances, it is evident that since requirements of section 141 of the act as mentioned earlier have not been satisfied, the petitioner could not be prosecuted for offence under section 138 read with section 141 of the act. 1998 (2) jcc 284. not only this court but other high courts have also taken the view that it is for the complainant to allege as well as prove that the concerned director of the company or a partner of the partnership firm was in charge and was responsible to the company for the conduct of its business at the relevant time......of rs. two lacs for a period of three months and accordingly a cheque drawn on oriental bank of commerce, darya ganj, delhi for rs. 2 lacs was issued by the complainant which was duly received and encased by the accused persons.'3. the entire complaint does not indicate anywhere that the petitioner being director at the time of commission of offence was in-charge and responsible to the company for the conduct of the business of the company. it is also not the case of the complainant that the petitioner has signed the loan documents. it is again not the case of the complainant that he has signed the cheques. in such circumstances, it is evident that since requirements of section 141 of the act as mentioned earlier have not been satisfied, the petitioner could not be prosecuted for offence under section 138 read with section 141 of the act. similar view has been taken in mahendra pratap singh ratra and anr. v. n.k. metals and anr. : 75(1998)dlt155 and prakash industries ltd. and ors. v. bajaj auto finance ltd. 1998 (2) jcc 284. not only this court but other high courts have also taken the view that it is for the complainant to allege as well as prove that the concerned director of the company or a partner of the partnership firm was in charge and was responsible to the company for the conduct of its business at the relevant time. so long it is not alleged, the liability of under section141(1) of the act cannot be made applicable to the petitioner. for the foregoing reasons i feel that the petition has to be allowed and it is allowed accordingly.

Full Judgment

S.N. Kapoor, J.

1. Heard. In this case, only one short question arises for consideration: 'Whether the petitioner, Sh. K.K. Chug, simply being Director of M/s. K.K. Overseas (Pvt.) Ltd. could be prosecuted?'

2. The allegations made in para-2 of the complaint for offence under Section 138 of the Negotiable Instruments Act (hereinafter called the 'Act' for short) read as under:

'2. That the accused persons were in need of money in the month of July, 1995 and requested the complainant for a friendly loan of Rs. two Lacs for a period of three months and accordingly a cheque drawn on Oriental Bank of Commerce, Darya Ganj, Delhi for Rs. 2 lacs was issued by the complainant which was duly received and encased by the accused persons.'

3. The entire complaint does not indicate anywhere that the petitioner being Director at the time of commission of offence was in-charge and responsible to the company for the conduct of the business of the company. It is also not the case of the complainant that the petitioner has signed the loan documents. It is again not the case of the complainant that he has signed the cheques. In such circumstances, it is evident that since requirements of Section 141 of the Act as mentioned earlier have not been satisfied, the petitioner could not be prosecuted for offence under Section 138 read with Section 141 of the Act. Similar view has been taken in Mahendra Pratap Singh Ratra and Anr. v. N.K. Metals and Anr. : 75(1998)DLT155 and Prakash Industries Ltd. and Ors. v. Bajaj Auto Finance Ltd. 1998 (2) JCC 284. Not only this Court but other High Courts have also taken the view that it is for the complainant to allege as well as prove that the concerned Director of the company or a partner of the partnership firm was in charge and was responsible to the company for the conduct of its business at the relevant time. So long it is not alleged, the liability of under Section141(1) of the Act cannot be made applicable to the petitioner. For the foregoing reasons I feel that the petition has to be allowed and it is allowed accordingly.

Same Court & Year Delhi · 1999 Same Parties K.K. Chug vs State and ors. Same Subject Commercial Same Judge S.N. Kapoor, J. Acts & Sections Negotiable Instruments Act, 1881 - Sections 134, 141 and 141(1)

Commercial