CENTRAL BANK OF INDIA versus M/S. ASIAN GLOBAL LTD. & ORS.

CENTRAL BANK OF INDIA versus M/S. ASIAN GLOBAL LTD. & ORS.

A complaint against directors under s.138 r/w s.141 of the Negotiable Instruments Act must contain specific allegations regarding their responsibility and involvement in the conduct of the company's business at the time of the offence; absence thereof justifies quashing and discharge.

Parties
Petitioner: Central Bank of India; Respondent: M/s Asian Global Ltd.; Respondent: Rajiv Jain; Respondent: Sarla Jain; Respondent: Asian Consolidated Industries Ltd.
Jurisdiction
India
Judgment Date
06 July 2010
Procedural Posture
Special Leave Petition (criminal) / Final Disposition
Outcome
petitions dismissed
Legal Topics
Negotiable Instruments Act – Section 138, Vicarious Liability of Directors, Quashing of Complaint
Criminal Law Banking Law Negotiable Instruments Act – Section 138 Vicarious Liability of Directors Quashing of Complaint

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Parties

Central Bank of India

Petitioner

M/s Asian Global Ltd.

Respondent

Rajiv Jain

Respondent

Sarla Jain

Respondent

Asian Consolidated Industries Ltd.

Respondent

Procedural Posture

Special Leave Petition (criminal) / Final Disposition

Legal Issues

  1. 1 Whether mere designation as Director of a company, without specific averment of responsibility, creates vicarious liability under s.141 of the Negotiable Instruments Act, 1881.
  2. 2 Whether a complaint lacking specific allegations against Directors can be sustained under s.138 r/w s.141 of the Negotiable Instruments Act, 1881.

Ratio Decidendi

A complaint against directors under s.138 r/w s.141 of the Negotiable Instruments Act must contain specific allegations regarding their responsibility and involvement in the conduct of the company's business at the time of the offence; absence thereof justifies quashing and discharge.

Court Disposition

petitions dismissed

Orders

  • Complaint quashed and respondents discharged from criminal proceedings.