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vishal parmar   22 November 2023

the negotiable instrument act 138

if i don't serve statutory notice u/s 138 one director of the company then can i join that director as accused while file criminal case against one of the director which whom i don't serve the notice if the accused is a company


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 3 Replies

T. Kalaiselvan, Advocate (Advocate)     23 November 2023

Section 138 of the Act does not admit of any necessity or scope for reading into it the requirement that the directors of the Company in question must also be issued individual notices under Section 138 of the Act. Such directors who are in charge of affairs of the Company and responsible for the affairs of the Company would be aware of the receipt of notice by the Company under Section 138. Therefore neither on literal construction nor on the touch stone of purposive construction such requirement could or ought to be read into Section 138 of the Act.  The opportunity to the ‘drawer’ Company is considered good enough for those who are in charge of the affairs of such Company. If it is their case that the offence was committed without their knowledge or that they had exercised due diligence to prevent such commission, it would be a matter of defence to be considered at the appropriate stage in the trial and certainly not at the stage of notice under Section 138 of NI Act.

 

Advocate Bhartesh goyal (advocate)     23 November 2023

Notice sent to company will be considered notice to its director so without serving notice to director you can implead director of company in complaint.

Dr. J C Vashista (Advocate )     23 November 2023

The signitory of cheque will have to be served with demand notice


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