• Sign In/Sign Up
  • Menu
  • +Clients Back

    • Get Free Legal Answers
    • Get Fee Estimates
    • Find Lawyers
  • +Lawyers

    • Case Diary & Office Manager
    • Post News & Artilces
    • Post Jobs & Internships
  • +Law Students

    • Campus Ambassadors
    • Find Jobs & Internships
    • Post News & Articles
    • Resource Sharing
  • +Law Schools

    • Post Admissions
    • Post Opportunities
    • Get Law School Rating

  • Home
  • News/Articles
  • HC held that Criminal Proceedings u/s 138 of NI Act not maintainable for Non-Executive Directors of a Company

Latest News

Back

HC held that Criminal Proceedings u/s 138 of NI Act not maintainable for Non-Executive Directors of a Company

Courtesy/By: R. Ashwin  |  07 Mar 2020     Views:1607

The High Court of Delhi held that Independent Non-Executive Directors of a company shall not be maintainable for criminal proceedings under section 138 of Negotiable Instruments Act, 1881 for dishonour of cheque. In re Sunita Patla & Ors V. M/s Kit Marketing Ltd the single bench Justice Manoj Kumar Ohri relied on various judgments given by the hon’ble Supreme Court. The court held that in the matter of Pooja Ravinder Devidasani v. State of Maharashtra & Anr., 2014(14) it must be proved that the directed being accused of must be shown as concern in charge and was responsible for the Company in conduct of its business. The court held that the cheques submitted which was maintained by the Company where the Non-Executive Directors never involve in day to day affairs of the Company. It has been said that the titled directors are not involved in the Managerial aspects of the Company. The court held that “A perusal of the complaint filed under Section 138 r/w Sections 141/142 of NI Act filed by the complainant shows that except for the general allegation stating that the petitioners were responsible for control and management and day to day affairs of the accused company, no specific role has been attributed to the petitioners. To fasten the criminal liability under The Negotiable Instruments Act, 1881, the above generalised averment without any specific details as to how and in what manner, the petitioners were responsible for the control and management of affairs of the company, is not enough.” The court also referred to the most recent verdict of the apex court in re AD Radha Krishnan V. Dasari Deepthi & Ors held that in order to initiate criminal proceedings against the Director in charge, must contain the conduct of the business at the time of commission of the offence. The court referred to Chintalapati Srinivasa Raju v. Securities and Exchange Board of India, (2018) 7 SCC 443 where the judgment given by the SC also upheld the verdict given in Pooja Ravinder Devidasani (supra) that every person connected to the said Company shall not be held liable. The court mentioned that there shall be existence of reasonable justification in order to initiate the criminal proceedings u/s 138 of NI Act against the Director. Thus, the court quashed the petition u/s 482 of Code of Criminal Procedure on the reason of upbringing some unimpeachable evidence to the record. In conclusion, “the Director could never have been in charge of and responsible for the conduct of the business of the company at the relevant time.”  


Courtesy/By: R. Ashwin  |  07 Mar 2020     Views:1607

News Updates

The Legal Framework of Bail Conditions in India: B...
25 Oct 2024     Views:5497
Changing an Arbitrator Mid-Proceeding: Legal Frame...
23 Oct 2024     Views:4931
IMF Retains India's FY25 GDP Growth Forecast at 7%...
22 Oct 2024     Views:4914
The Evolving Landscape of Russian Anti-Suit Injunc...
22 Oct 2024     Views:4705
Hyundai’s IPO vs Competitors: How the Auto Giant...
15 Oct 2024     Views:4731
The Validity of Arbitration Agreements Post Decree...
14 Oct 2024     Views:4386
SEBI Issues Checklist for AIFs, Their Managers, an...
08 Oct 2024     Views:4760
The Siemens v. Russian Railroads Case...
07 Oct 2024     Views:4754
Empowering Minds in Confinement: Bombay HC’s Lan...
03 Oct 2024     Views:4870
The Dynamics of Novation in Contract Law and Its I...
02 Oct 2024     Views:5050
SEBI Establishes Consistent Evaluation Standards f...
01 Oct 2024     Views:4758
Landmark Decision by Austrian Supreme Court on Arb...
30 Sep 2024     Views:4735
Key Considerations for Indian Commercial Claims...
25 Sep 2024     Views:4687
Boom or Bust: Africa’s Oil Giants Face Declining...
23 Sep 2024     Views:4805
The Growing Role of Arbitration in Intellectual Pr...
23 Sep 2024     Views:4765
Supreme Court Greenlights Sub-Classification of SC...
20 Sep 2024     Views:5083
SEBI's Employee Grievances Prompt Formation of Wor...
19 Sep 2024     Views:4915
Environmental Law in India: Challenges and Opportu...
18 Sep 2024     Views:5741
Navigating the New Legal Landscape of Exclusive Ju...
16 Sep 2024     Views:4877
The Anatomy of Joint Venture Breakups in India (an...
31 Jul 2024     Views:5221
The Integration of ESG in India's M&A Landscape...
31 Jul 2024     Views:5122
Future of AI in Legal Systems and Conflict Resolut...
21 Jul 2024     Views:5312
World Health Assembly Revises International Health...
21 Jul 2024     Views:5166
Pokemon GO Fans Concerned Over Restrictive New Ter...
21 Jul 2024     Views:5285
Landmark Judgment on Setting Aside Arbitration Awa...
21 Jul 2024     Views:5068
Understanding the Process of Issuing Summons in In...
11 Jul 2023     Views:8437
Understanding the Unlawful Activities (Prevention)...
10 Jul 2023     Views:6998
Understanding the Mental Health Act in India: A St...
09 Jul 2023     Views:7040
Combating Manual Scavenging in India: A Call for S...
07 Jul 2023     Views:6839
Impleadment in Supreme Court of India: A Comprehen...
05 Jul 2023     Views:7791
Unraveling the Distinction: Culpable Homicide vs. ...
03 Jul 2023     Views:7136
Understanding the Difference between Money Bills a...
02 Jul 2023     Views:5678
Understanding the Civil Procedure Code in India: A...
01 Jul 2023     Views:6452
The Rights of Criminals in India: Upholding Justic...
30 Jun 2023     Views:5717
Exploring the Differences between the US and India...
29 Jun 2023     Views:5722
What to Do If the Police Refuse to Register Your F...
26 Jun 2023     Views:5967
Timeline of Environmental Protocols: A Global Effo...
25 Jun 2023     Views:5669
How to Deal with Cheque Bounce Cases in India...
24 Jun 2023     Views:5649
Pursuing a Lucrative Litigation Career in Indian L...
22 Jun 2023     Views:5701
Understanding the Emergency Provisions of India: S...
21 Jun 2023     Views:5665
Environment Legislation in India: A Comprehensive ...
20 Jun 2023     Views:6020
Understanding the Emergency Powers of the Constitu...
18 Jun 2023     Views:5525
Understanding the Emergency Powers of the Constitu...
17 Jun 2023     Views:5550
Timeline of Same-Sex Laws in India: A Journey Towa...
16 Jun 2023     Views:5995
Sir Creek Dispute and Legal Implications...
15 Jun 2023     Views:6188
Jurisprudence of NDPS Laws in India: A Comprehensi...
14 Jun 2023     Views:5769
Impleadment Proceedings: A Comprehensive Guide to ...
13 Jun 2023     Views:6204
Understanding Continuing Mandamus: A Powerful Judi...
12 Jun 2023     Views:8166
Res Judicata: The Doctrine of Finality in Legal Pr...
10 Jun 2023     Views:6203
Mastering the Art of Legal Drafting: A Comprehensi...
08 Jun 2023     Views:5866
Order 1 Rule 10 of the Code of Civil Procedure (CP...
07 Jun 2023     Views:11504
Understanding the Laws of War: Protecting Humanity...
03 Jun 2023     Views:5590
Understanding the Code of Criminal Procedure (CRPC...
02 Jun 2023     Views:6437
The National Drug and Psychotropic Substances (NDP...
01 Jun 2023     Views:6016
A Step-by-Step Guide: How to File an FIR in India...
31 May 2023     Views:5714
Zero FIR: An Effective Tool for Prompt Criminal Ju...
30 May 2023     Views:5950
Unveiling the Dissent of Judges in Judicial Judgme...
28 May 2023     Views:5596
Environmental Laws in India: Safeguarding Nature f...
25 May 2023     Views:6045
The Recusal of Supreme Court of India Judges from ...
24 May 2023     Views:5717
Understanding the Jurisdiction of the Supreme Cour...
23 May 2023     Views:6165
Article 142 of the Constitution of India: A Compre...
22 May 2023     Views:6373
Landmark Judgments in Arbitration Law in India: A...
21 May 2023     Views:6600
Landmark Cases on Anticipatory Bail in India: A Pa...
20 May 2023     Views:10492
Embracing the Future: How AI is Revolutionizing th...
18 May 2023     Views:5817
Understanding Narcotics Laws in India: A Comprehen...
17 May 2023     Views:5680
Understanding Indian Laws on Cross-Border Transact...
16 May 2023     Views:6803
ADR mechanism of legal adjudication in India...
15 May 2023     Views:5526
Validity of foreign arbitral award in India throug...
14 May 2023     Views:5542
Scope of Section 151 CPC...
13 May 2023     Views:7117
Detailed Overview on Section 482 of Crpc...
11 May 2023     Views:6065
Scope of Decree under CPC...
10 May 2023     Views:5625
Legal development of Arbitration Laws in India....
09 May 2023     Views:5668
Arbitration Laws in India...
07 May 2023     Views:5607
Impact of COVID-19 on Legal Industry...
06 May 2023     Views:7713
Chargesheet not having authority's valid sanction ...
02 May 2023     Views:5885
Same-Sex Marriage in India...
30 Apr 2023     Views:5533
National Commission for Women...
27 Apr 2023     Views:5385
Law making process of India....
26 Apr 2023     Views:6469
Bail Provisions in India...
25 Apr 2023     Views:5409
Life imprisonment in Criminal Law in India...
24 Apr 2023     Views:5821
Contempt of Court...
23 Apr 2023     Views:5664
The collegium system of Judiciary in India....
22 Apr 2023     Views:5351
Remarriage before Expiry of Limitation Period to f...
21 Apr 2023     Views:5351
Need for strict measure of NDPS laws in India....
20 Apr 2023     Views:5506
Nature of Offence under Section 138 of NI Act is Q...
19 Apr 2023     Views:7937
Order VII Rule 11 CPC: Plaint cannot be rejected m...
18 Apr 2023     Views:6548
Mediation: At the Dawn of Golden Age organized at ...
16 Apr 2023     Views:5632
Central Government's motto should be mediate, not ...
15 Apr 2023     Views:5346
Ambedkar Jayanti Celebrations...
14 Apr 2023     Views:5551
Supreme Court of India calls for Preventive Measur...
12 Apr 2023     Views:5120
Pursuing LL.M is not break in Law Practice, Rules ...
11 Apr 2023     Views:5335
Law should take into consideration realities of co...
10 Apr 2023     Views:5171
Delhi High Court said that peeping into public bat...
08 Apr 2023     Views:5764
Delhi High Court denies bails to AAP's Satyendra J...
06 Apr 2023     Views:5888
Supreme Court’s Triple Talaq Judgement Would App...
30 Jan 2023     Views:5616
Article 311(1) | An Order of Removal From Service ...
26 Jan 2023     Views:6095
Leaders shouldn't disrespect the President or Pri...
17 Jan 2023     Views:5399
New bench will hear Ashwini Upadhyay's Supreme Cou...
15 Jan 2023     Views:5535
Person Who Drove Rashly with the Knowledge that it...
12 Jan 2023     Views:6118
The rigours of Section 37 of the NDPS Act cannot b...
11 Jan 2023     Views:5860
FIND A LAWYER




FIND A LAW SCHOOL



Most Read News Articles

  • Sabrimala Verdict (28 sept 2018) - A End of Taboo.
    On 07 Oct 2020    Views:95848
  • Case Analysis: Vellore Citizens Welfare Forum vs Union of India
    On 11 Dec 2020    Views:73407
  • Case Analysis: THE BERUBARI UNION CASE
    On 14 Dec 2020    Views:70827
  • DOCTRINE OF ELECTION UNDER TRANSFER OF PROPERTY ACT, 1882
    On 08 Jul 2020    Views:69966
  • A.K. Gopalan v. State of Madras (1950 AIR 27, 1950 SCR 88)
    On 08 Nov 2020    Views:59320
View all >>

Propertified Propertified Propertified Propertified Propertified Propertified Propertified Propertified Propertified

86540

Lawyers Network

103860

Users

630

Cities Serving

114

Law Schools Network

59824

Law Students Network

About us

  • Company Profile

Indian Major Laws

  • Indian Constitution
  • IPC
  • CrPC
  • CPC
  • Companies Act
  • Indian Evidence Act
  • CGST Act
  • Limitation Act

Policies

  • Terms of Use
  • Privacy Policy
  • Refund & Cancellation

    Ads & Media

  • Resource Sharing
  • Advertiser(Sign Up/Login)
  • Media

    Careers

  • Internships
  • Jobs
  • Student Journalists

    HELP & SUPPORT

  • Contact Us
  • Grievances
  • Test

News

  • Legal News
  • Post Article
  • Post Interview

Legal Library

  • Central Acts
  • Deeds Drafts [1128 ]
  • Legal Maxims

Connect

Lawsisto Direct

 

  •  
  •  
DISCLAIMER
Copyright © Lawsisto Private Limited. All rights reserved.
Unless otherwise indicated, all materials on these pages are copyrighted by Lawsisto Private Limited. All rights reserved. No part of these pages, either text or image may
be used for any purpose. By continuing past this page, you agree to our Terms of Service, Cookie Policy, Privacy Policy and Content Policies.