SIBY THOMAS versus M/S. SOMANY CERAMICS LTD

SIBY THOMAS versus M/S. SOMANY CERAMICS LTD

The complaint did not contain specific averments that the appellant was 'in charge of, and was responsible to' the firm for conduct of its business at the time the offence was committed as required by Section 141(1) NI Act; therefore the averments were insufficient to attract vicarious liability and the complaint against accused No.4 was liable to be quashed under Section 482 Cr.P.C.

Parties
Appellant: Siby Thomas; Respondent: M/s. Somany Ceramics Ltd.
Jurisdiction
India
Judgment Date
10 October 2023
Procedural Posture
Criminal Appeal / Judgment
Outcome
Appeal allowed
Legal Topics
Section 138 NI Act, Section 141 NI Act, Section 482 Cr.p.c., Quashing of Complaint, Vicarious Liability, Specific Averments in Complaint
Negotiable Instruments Act, 1881 Code of Criminal Procedure, 1973 Section 138 NI Act Section 141 NI Act Section 482 Cr.p.c. Quashing of Complaint Vicarious Liability Specific Averments in Complaint

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Parties

Siby Thomas

Appellant

M/s. Somany Ceramics Ltd.

Respondent

Procedural Posture

Criminal Appeal / Judgment

Legal Issues

  1. 1 Whether the complaint under Section 138 read with Section 141 of the Negotiable Instruments Act could be quashed against accused No.4 for lack of mandatory averments under Section 141(1)
  2. 2 Whether the appellant’s alleged retirement from the partnership prior to issuance of the cheque precludes prosecution and is a matter for evidence or for quashing at initial stage under Section 482 Cr.P.C.

Ratio Decidendi

The complaint did not contain specific averments that the appellant was 'in charge of, and was responsible to' the firm for conduct of its business at the time the offence was committed as required by Section 141(1) NI Act; therefore the averments were insufficient to attract vicarious liability and the complaint against accused No.4 was liable to be quashed under Section 482 Cr.P.C.

Court Disposition

Appeal allowed

Orders

  • Impugned High Court order dated 06.12.2019 set aside insofar as appellant (accused No.4) is concerned
  • Criminal complaint titled M/s. Somany Ceramics v. M/s. Tile Store etc. COMA-321-2015 quashed only in respect of accused No.4 (appellant)