HARSHENDRA KUMAR D. versus REBATILATA KOLEY ETC.

HARSHENDRA KUMAR D. versus REBATILATA KOLEY ETC.

A director whose resignation has been duly accepted and notified to the Registrar of Companies cannot be made criminally liable for offences committed by the company after such resignation; if uncontested documents show the director was not associated at the relevant time, proceedings against him should be quashed to prevent abuse of process.

Parties
Appellant: Harshendra Kumar D.; Respondent: Rebatilata Koley Etc.
Jurisdiction
India
Judgment Date
08 February 2011
Procedural Posture
Criminal Appeal / Appeal From High Court Judgment and Order Dismissing Revision Applications Against Issuance of Summons by Metropolitan Magistrate
Outcome
Appeals allowed; complaints against the appellant quashed.
Legal Topics
Vicarious Liability, Directors' Criminal Liability, Quashing of Proceedings, Negotiable Instruments, Dishonour of Cheque
Criminal Law Corporate Law Vicarious Liability Directors' Criminal Liability Quashing of Proceedings Negotiable Instruments Dishonour of Cheque

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Parties

Harshendra Kumar D.

Appellant

Rebatilata Koley Etc.

Respondent

Procedural Posture

Criminal Appeal / Appeal From High Court Judgment and Order Dismissing Revision Applications Against Issuance of Summons by Metropolitan Magistrate

Legal Issues

  1. 1 Whether a director, whose resignation has been accepted and notified to the Registrar of Companies prior to commission of the offence, can be made liable for offences under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881
  2. 2 Whether High Court can quash proceedings against such director at the revisional stage based on uncontroverted documents

Ratio Decidendi

A director whose resignation has been duly accepted and notified to the Registrar of Companies cannot be made criminally liable for offences committed by the company after such resignation; if uncontested documents show the director was not associated at the relevant time, proceedings against him should be quashed to prevent abuse of process.

Court Disposition

Appeals allowed; complaints against the appellant quashed.

Orders

  • Judgment of Calcutta High Court dated September 6, 2007 set aside.
  • Summons issued by Metropolitan Magistrate, Calcutta to appellant set aside.