SANKAR PADAM THAPA versus VIJAYKUMAR DINESHCHANDRA AGARWAL

SANKAR PADAM THAPA versus VIJAYKUMAR DINESHCHANDRA AGARWAL

A Trust is not a juristic person capable of suing or being sued in its own name for the purposes considered; only trustees operate and are liable for acts of the trust, and therefore a complaint under the NI Act is maintainable against the trustee/chairman who signed the cheque without the necessity of making the Trust an accused.

Parties
Appellant: Sankar Padam Thapa; Respondent: Vijaykumar Dineshchandra Agarwal
Jurisdiction
India
Judgment Date
09 October 2025
Procedural Posture
Criminal Appeal / Appeal to Supreme Court Against High Court Judgment Quashing Criminal Complaint Under the Negotiable Instruments Act
Outcome
Appeal allowed; Impugned High Court judgment quashed and set aside
Legal Topics
Maintainability of Complaint Under NI Act Against Trustee, Whether a Trust Is a Juristic Person or Capable of Suing or Being Sued, Vicarious Liability Under Section 141, NI Act, Joinder of Necessary Parties in NI Act Complaint, Liability of Signatory of Dishonoured Cheque
Negotiable Instruments Act, 1881 Trusts Act, 1882 Indian Penal Code, 1860 Code of Criminal Procedure, 1973 Consumer Protection Act, 1986 Maintainability of Complaint Under NI Act Against Trustee Whether a Trust Is a Juristic Person or Capable of Suing or Being Sued Vicarious Liability Under Section 141, NI Act +2 more

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Parties

Sankar Padam Thapa

Appellant

Vijaykumar Dineshchandra Agarwal

Respondent

Procedural Posture

Criminal Appeal / Appeal to Supreme Court Against High Court Judgment Quashing Criminal Complaint Under the Negotiable Instruments Act

Legal Issues

  1. 1 Whether a complaint under the NI Act is maintainable against the chairman/trustee when the trust has not been made an accused
  2. 2 Whether a trust can sue or be sued / is a trust a juristic person for purposes of NI Act

Ratio Decidendi

A Trust is not a juristic person capable of suing or being sued in its own name for the purposes considered; only trustees operate and are liable for acts of the trust, and therefore a complaint under the NI Act is maintainable against the trustee/chairman who signed the cheque without the necessity of making the Trust an accused.

Court Disposition

Appeal allowed; Impugned High Court judgment quashed and set aside

Orders

  • Impugned Judgment dated 21.11.2022 quashed and set aside
  • Criminal Case No.44(S)/2019 restored to the Trial Court file and number to proceed in accordance with law, with directions to take steps with due expedition