PARESH P. RAJDA versus STATE OF MAHARASHTRA & ANR.

PARESH P. RAJDA versus STATE OF MAHARASHTRA & ANR.

Since the complaint specifically avers that the appellant and co-accused were responsible for the conduct of company affairs, and such responsibility has not been seriously challenged, it is inappropriate to quash proceedings at the threshold and the matter should go to trial.

Parties
Appellant: Paresh P. Rajda; Respondents: State of Maharashtra & Anr.
Jurisdiction
India
Judgment Date
16 May 2008
Procedural Posture
Criminal Appeal / Appeal From High Court Order on Quashing Application
Outcome
Appeal dismissed
Legal Topics
Offences Under Negotiable Instruments Act, Liability of Company Directors for Dishonour of Cheques, Quashing of Criminal Proceedings
Criminal Law Banking Law Offences Under Negotiable Instruments Act Liability of Company Directors for Dishonour of Cheques Quashing of Criminal Proceedings

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Parties

Paresh P. Rajda

Appellant

State of Maharashtra & Anr.

Respondents

Procedural Posture

Criminal Appeal / Appeal From High Court Order on Quashing Application

Legal Issues

  1. 1 Whether specific allegations in the complaint against the accused are sufficient to proceed under Sections 138 and 141 of the Negotiable Instruments Act without trial having commenced.
  2. 2 Whether the Chairman/Directors can be summoned solely based on their designation without specific averments as to their role and responsibility in the conduct of the company's business.

Ratio Decidendi

Since the complaint specifically avers that the appellant and co-accused were responsible for the conduct of company affairs, and such responsibility has not been seriously challenged, it is inappropriate to quash proceedings at the threshold and the matter should go to trial.

Court Disposition

Appeal dismissed

Orders

  • No merit found in appeals; proceedings not quashed; trial to proceed against the accused