The supreme court today ruled that directors of a company cannot be prosecuted in cheque bounce cases unless it is proved that the person was directly responsible or was"in charge"of the firm 's operation at the time os issuing the cheque.
"evry person connected with the company shall not fall within the ambit of provision.only those persons who were in-charge of and resposible for the conduct of the business of the company at the time of commission of an offence will be liable for criminal action.
"It follows from the fact that if a director of a company who was not in-charge of and was not responsible for the conduct of the business of the company at the relevant time will not be liable for criminal offence under the provisions" a bench of justices P sathasivam and HL dattu said in an judgement .
the apex court passed the judgement while dismisissing the appeals filled by two companies challenging the delhi high court's decision to quash the summons issued against harmeet singh paintal and dev sarin, ex drictors of the jay rapid roller limited and the international agro allied products ltd in two separate cases.
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