cheque and the company
queryking
(Querist) 04 January 2010
This query is : Resolved
cheque is issued on behalf of the firm,
only its managing partner arrayed as accused, he was shown as managing partner in the cause title of the complaint, there was no allegation in the complaint how he is responsible for the conduct of the business.
but the court convicted the managing partner,
is there any judgments infavour of the managing director
J.D.Sharma
(Expert) 04 January 2010
Negotiable Instruments Act, 1881, S.138 - Dishonour of cheque - Company - Chairman or Director - Pleading - There must be an averment that the person who is vicariously liable for commission of the offence of the Company both was incharge of and was responsible for the conduct of the business of the Company - Such requirement must be read conjointly and not disjunctively. (Everest Advertising Pvt.Ltd. Vs State, Govt. of NCT of Delhi & Ors.) 2007(2) Apex Court Judgments 191 (S.C.) : 2007(2) Civil Court Cases 708 (S.C.) : 2007(2) Criminal Court Cases 791 (S.C.)
queryking
(Querist) 04 January 2010
at the time of arguments on merits the above judgments were quoted by the accused even though the firm is not made as accused, the court convicted the managing partner stating that 'the firm is not a necessary party and as the managing partner is the responsible for the conduct of the business as as the managing partner is arrayed as accused hence the complaint is maintainable', its assumption. the trail court has not followed the judgments of the supreme court
Arvind Singh Chauhan
(Expert) 04 January 2010
Sir I am attaching the latest judgment of SC on such point, in which 12 other judgments are quoted. Hope it may be beneficial to you.
Find the attachment.
Arvind Singh Chauhan
(Expert) 04 January 2010
Sir I am attaching the latest judgment of SC on such point, in which 12 other judgments of SC are quoted. Hope it may be beneficial to you. Find the attachment.
Arvind Singh Chauhan
(Expert) 04 January 2010
Sorry Sir, for wrong clicking on "submit" box in place of "attach file" Find Now.
Sukhija
(Expert) 04 January 2010
is ur client responsible for the company? any evidence has come before the court during cross of complainant showing his involvement in the transaction? Is he signatory of the cheque?
u can file an appeal against conviction if u want to challenge the judgement of lower court.
queryking
(Querist) 04 January 2010
Thank you very much Arvind ji,
The Managing director is responsible for the company but the neither the complainant nor the accused stated this, no evidence to show that the is responsible for the transaction, cheque is signed by the managing director but it was on behalf of the firm, with the firm seal
Ajay Bansal
(Expert) 04 January 2010
Answer of Mr. J.D.Sharma is correct of this question.
Raj Kumar Makkad
(Expert) 04 January 2010
If managing director has signed the cheque then there is no need to implead the company/firm or to specifically mention therein that the accused was the responsible authority. His managing the firm/partnership is sufficient to establish his guilt and in the given case the referred citation is not applicable and no hope remains even in appeal.
