N. RANGACHARI versus BHARAT SANCHAR NIGAM LTD.

N. RANGACHARI versus BHARAT SANCHAR NIGAM LTD.

Where the complaint specifically alleges that the accused directors were in charge of and responsible for conduct of business at relevant time, and no defence can be established without trial, it is not proper to quash the complaint under Section 482 CrPC; the burden is on such accused to prove any restriction or exculpatory circumstance at trial.

Parties
Appellant: N. Rangachari; Respondent: Bharat Sanchar Nigam Ltd.
Jurisdiction
India
Judgment Date
19 April 2007
Procedural Posture
Criminal Appeal / Appeal Against Dismissal of Petition for Quashing Complaint by High Court
Outcome
Appeal dismissed
Legal Topics
Dishonour of Cheque, Vicarious Liability, Company Directors' Responsibility, Quashing of Complaint
Criminal Law Corporate Law Dishonour of Cheque Vicarious Liability Company Directors' Responsibility Quashing of Complaint

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Parties

N. Rangachari

Appellant

Bharat Sanchar Nigam Ltd.

Respondent

Procedural Posture

Criminal Appeal / Appeal Against Dismissal of Petition for Quashing Complaint by High Court

Legal Issues

  1. 1 Whether the complaint against a company director under Sections 138 and 141 of the Negotiable Instruments Act is liable to be quashed in absence of explicit averments of responsibility.
  2. 2 What is the burden of proof for directors to establish non-liability for company offences under s.141 of the Negotiable Instruments Act?

Ratio Decidendi

Where the complaint specifically alleges that the accused directors were in charge of and responsible for conduct of business at relevant time, and no defence can be established without trial, it is not proper to quash the complaint under Section 482 CrPC; the burden is on such accused to prove any restriction or exculpatory circumstance at trial.

Court Disposition

Appeal dismissed

Orders

  • The decision of the High Court refusing to quash the complaint is affirmed.
  • Case is to be tried and disposed of in accordance with law on basis of evidence adduced.