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Negotiable Instruments Act, 1881 – s.138 r/w. s.142 – The grievance of the complainant-respondent is that in-spite of regular follow-ups and reminders, the company-accused no.1 failed and neglected to clear the respondent’s dues – On repeated demands, the company furnished respondent five cheques – When complainant deposited the cheques, they were returned unpaid with reason “payment stopped by drawer” – Accordingly, the respondent filed two complaints u/s. 190(i)(a) of the Cr.P.C. for offences punishable u/ss. 138 & 142 of the N.I. Act – Both the complaints were filed against three accused persons including appellant herein (accused no.3) – Appellant sought to quash criminal proceedings against her u/s. 482 Cr.P.C, however the same was dismissed by the High Court – Propriety:

* Author

[2024] 3 S.C.R. 647 : 2024 INSC 206

Susela Padmavathy Amma

v.

M/S Bharti Airtel Limited

(Criminal Appeal Nos. 1577-1578 of 2024)

15 March 2024

[B.R. Gavai* and Sandeep Mehta, JJ.]

Issue for Consideration

The High Court rejected the prayer for quashing of criminal

complaints qua the appellant in connection with the offence

punishable u/s. 138 r/w. s.142 of the Negotiable Instruments Act,

1881.

Headnotes

Negotiable Instruments Act, 1881 – s.138 r/w. s.142 – The

grievance of the complainant-respondent is that in-spite of

regular follow-ups and reminders, the company-accused

no.1 failed and neglected to clear the respondent’s dues –

On repeated demands, the company furnished respondent

five cheques – When complainant deposited the cheques,

they were returned unpaid with reason “payment stopped by

drawer” – Accordingly, the respondent filed two complaints

u/s. 190(i)(a) of the Cr.P.C. for offences punishable u/ss. 138

& 142 of the N.I. Act – Both the complaints were filed against

three accused persons including appellant herein (accused

no.3) – Appellant sought to quash criminal proceedings against

her u/s. 482 Cr.P.C, however the same was dismissed by the

High Court – Propriety:

Held: On perusal of the complaint, it is clear that the only allegation

against the present appellant is that she and the accused No.2

had no intention to pay the dues that they owe to the complainant

– It is stated that the 2nd accused and the 3rd accused (appellant

herein) are the Directors, promoters of the 1st accused being

the Company – It is further averred that the 2nd accused is the

authorized signatory, who is in-charge of and responsible for the

day-to-day affairs of the Company, i.e., the 1st accused – It can be

clearly seen that there is no averment to the effect that the present

appellant is in-charge of and responsible for the day-to-day affairs 

648 [2024] 3 S.C.R.

Digital Supreme Court Reports

of the Company – It is also not the case of the respondent that the

appellant is either the Managing Director or the Joint Managing

Director of the Company – The averments made are not sufficient

to invoke the provisions of s.141 of the N.I. Act qua the appellant

– Thus, the criminal proceedings in connection with the offence

punishable u/s. 138 r/w. s.142 of the N.I. Act are quashed and set

aside qua the present appellant. [Paras 19-22]

Negotiable Instruments Act, 1881 – s.138, s.141 – Vicarious

liability of the director:

Held: Merely reproducing the words of the section without a clear

statement of fact as to how and in what manner a director of the

company was responsible for the conduct of the business of the

company, would not ipso facto make the director vicariously liable.

[Para 12]

Case Law Cited

State of Haryana v. Brij Lal Mittal and others [1998] 3

SCR 104 : (1998) 5 SCC 343; S.M.S. Pharmaceuticals

Ltd. v. Neeta Bhalla and another [2005] Suppl. 3 SCR

371 : (2005) 8 SCC 89; Pooja Ravinder Devidasani

v. State of Maharashtra and another [2014] 14 SCR

1468 : (2014) 16 SCC 1; State of NCT of Delhi through

Prosecuting Officer, Insecticides, Government of NCT,

Delhi v. Rajiv Khurana [2010] 9 SCR 387 : (2010)

11 SCC 469; Ashoke Mal Bafna v. Upper India Steel

Manufacturing and Engineering Company Limited (2018)

14 SCC 202 – relied on.

N.K. Wahi v. Shekhar Singh and others [2007] 3 SCR

883 : (2007) 9 SCC 481; Krishi Utpadan Mandi Samiti

and others v. Pilibhit Pantnagar Beej Ltd. and another

[2003] Suppl. 6 SCR 344 : (2004) 1 SCC 391; Laxmi

Dyechem v. State of Gujarat and others [2012] 11

SCR 466 : (2012) 13 SCC 375; K.K. Ahuja v. V.K. Vora

and another [2009] 9 SCR 1144 : (2009) 10 SCC 48;

Lalankumar Singh and others v. State of Maharashtra

[2022] 14 SCR 573 : 2022 SCC OnLine SC 1383 –

referred to.

List of Acts

Negotiable Instruments Act, 1881; Code of Criminal Procedure, 1973.

[2024] 3 S.C.R. 649

Susela Padmavathy Amma v. M/S Bharti Airtel Limited

List of Keywords

Failure to pay dues; Dishonour of cheque for insufficiency,

etc., of funds in the account; In-charge of company; Authorized

signatory; Responsible to company; Conduct of company; Criminal

proceedings; Quashing.

Case Arising From

CRIMINAL APPELLATE JURISDICTION : Criminal Appeal Nos.1577-

1578 of 2024

From the Judgment and Order dated 26.04.2022 in CRLOP

Nos.3470 and 5767 of 2019 of the High Court of Judicature at

Madras

Appearances for Parties

Manoj V George, Ms. Shilpa Liza George, Km Vignesh Ram, Nasib

Masih, Ms. Akshita Agrawal, Ms. Chaahat Khanna, Advs. for the

Appellant.

Lakshmeesh S. Kamath, Ms. Samriti Ahuja, Karan Singh Dalal, Advs.

for the Respondent.

Judgment / Order of the Supreme Court

Judgment

B.R. Gavai, J.

1. Leave granted.

2. The present appeals challenge the common judgment and order

dated 26th April, 2022 passed by the High Court of Judicature at

Madras (hereinafter referred to as “High Court”), in Crl. O.P. Nos.

3470 & 5767 of 2019 and Crl. M.P. Nos. 2224, 2225 & 3255 of 2019,

whereby the High Court rejected the prayer for quashing of C.C.

Nos. 3151 & 3150 of 2017, on the file of learned XVIII Metropolitan

Magistrate, Saidapet, Chennai (now transferred to the learned

Metropolitan Magistrate, Fast Track Court-III, Saidapet, Chennai),

in connection with the offence punishable under Section 138 read

with Section 142 of the Negotiable Instruments Act, 1881 (hereinafter

referred to as “the N.I. Act”).

3. The facts, in brief, giving rise to the present appeals are as follows:

650 [2024] 3 S.C.R.

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3.1 M/s. Bharti Airtel Limited (hereinafter referred to as, “complainant”

or “respondent”), is a company engaged in the business of

providing telecommunication services, under a license issued

by the Government of India, in various telecom circles in India.

3.2 One M/s. Fibtel Telecom Solutions (India) Private Limited

(hereinafter referred to as, “Fibtel Telecom Solutions” or

“Company”), a company registered with the Telecom Regulatory

Authority of India (TRAI) as a telemarketer, had approached the

respondent intending to obtain telecom resources for the purpose

of transactional communication and requested the complainant

for allotment of telecom resources for the said purpose. One

Manju Sukumaran Lalitha is the Director & Authorized Signatory

of Fibtel Telecom Solutions and one Susela Padmavathy Amma,

the appellant herein, is the Director of Fibtel Telecom Solutions.

3.3 Based on the representation made by Fibtel Telecom Solutions,

the respondent had agreed to provide the required services,

whereupon the parties entered into a Service Agreement, vide

which Fibtel Telecom Solutions had to pay Rs. 14,00,000/- as

fixed monthly recurring charges to the respondent. It is the thus

the case of the respondent that Fibtel Telecom Solutions owes

a sum of Rs. 2,55,08,309/-, in lieu of the service provided to

it by the respondent.

3.4 However, the grievance of the respondent is that in-spite of

regular follow-ups and reminders, Fibtel Telecom Solutions

failed and neglected to clear the respondent’s dues. Only

thereafter, upon repeated demands made by the respondent,

Fibtel Telecom Solutions furnished five post-dated cheques to

the complainant, on 17 th June 2016, details of which are as

given below:

Sr. No. Cheque No. Cheque Dated Cheque Amount

1 414199 25.06.2016 Rs. 25,00,000/-

2 414196 31.08.2016 Rs. 50,00,000/-

3 414204 31.08.2016 Rs. 80,00,000/-

4 414195 31.07.2016 Rs. 45,00,000/-

5 414205 30.09.2016 Rs. 80,00,000/-

[2024] 3 S.C.R. 651

Susela Padmavathy Amma v. M/S Bharti Airtel Limited

3.5 On deposit of the cheque mentioned at Sr. No. 1 in the table,

bearing cheque no. 414199 and dated 25th June 2016, by the

respondent, the said cheque was returned to it unpaid with

reason “payment stopped by drawer”. Aggrieved thereby, the

respondent issued a legal notice to Fibtel Telecom Solutions,

on receipt of which & following an oral agreement between

them, a payment schedule was agreed to and a cheque for an

amount of Rs. 25,00,000/- drawn by Fibtel Telecom Solutions

was honoured by it. However, when the complainant deposited

the remaining four cheques as mentioned at Sr. No. 2 to 5 in

the table, the same were returned to it unpaid with reason

“payment stopped by drawer”. Details of deposit & return of

cheques are as given below:

Cheque

No.

Cheque

Presented

On

Cheque

Returned

On

Legal

Notice

Reply

414196 23.09.2016 26.09.2016 13.10.2016 12.11.2016

414204 23.09.2016 26.09.2016 13.10.2016 12.11.2016

414195 25.10.2016 26.10.2016 09.11.2016 No reply

414205 17.10.2016 18.10.2016 10.11.2016 29.11.2016

3.6 Accordingly, the respondent filed two complaints under Section

190(i)(a) of the Code of Criminal Procedure, 1973 (“CrPC” for

short) for offences punishable under Section 138 & 142 of the

N.I. Act, being C.C. No. 3151 of 2017 dated 30th November, 2016

and C.C. No. 3150 of 2017 dated 23rd December, 2016, before

the learned XVIII Metropolitan Magistrate, Saidapet, Chennai.

3.7 Both the complaints have been filed against three accused

persons namely, Fibtel Telecom Solutions, arrayed as Accused

No. 1; Manju Sukumaran Lalitha, arrayed as Accused No. 2 &

Susela Padmavathy Amma, the appellant herein, arrayed as

Accused No. 3.

3.8 Accused No. 3, who is a female senior citizen and the Director

of Fibtel Telecom Solutions, filed Crl. O.P. No. 3470 of 2019

against C.C. No. 3151 of 2017 & Crl. O.P. No. 5767 of 2019

against C.C. No. 3150 of 2017, before the High Court under 

652 [2024] 3 S.C.R.

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Section 482 of the CrPC for quashing of the criminal complaints

qua her.

3.9 Vide impugned judgment and order, dated 26th April, 2022, the

High Court dismissed Crl. O.P. Nos. 3470 & 5767 of 2019 and

Crl. M.P. Nos. 2224, 2225 & 3255 of 2019, but directed the

concerned trial court to dispose of the case within a period of

three months.

3.10 Aggrieved by the rejection of the petition for quashing of criminal

complaints, the appellant herein filed the present appeal.

3.11 Vide order dated 12 th December 2022, this Court had issued

notice and stay of further proceedings qua the appellant was

granted.

4. We have heard Shri Manoj V. George, learned counsel for the

appellant and Shri Lakshmeesh S. Kamath, learned counsel appearing

for the respondent.

5. Shri Manoj V. George, learned counsel for the appellant submitted

that the appellant is an aged-lady and was not involved in the day-today affairs of the Company. It is submitted that even in the complaint

there are no averments that the appellant was in-charge of day-today affairs of the Company. It is further submitted that the appellant

was also not a signatory to the cheque in question. It was only the

accused No.2 who was the signatory to the cheque. It is, therefore,

submitted that the High Court has grossly erred in not allowing the

petition for quashing of criminal complaints qua the appellant. Learned

counsel relied on the judgments of this Court in the cases of N.K.

Wahi vs. Shekhar Singh and others1

, S.M.S. Pharmaceuticals

Ltd. vs. Neeta Bhalla and another2

 Ashoke Mal Bafna vs. Upper

India Steel Manufacturing and Engineering Company Limited3

,

Krishi Utpadan Mandi Samiti and others vs Pilibhit Pantnagar

Beej Ltd. and another4

 and Laxmi Dyechem vs. State of Gujarat

and others5

 in support of his submissions.

1 [2007] 3 SCR 883 : (2007) 9 SCC 481

2 [2005] Suppl. 3 SCR 371 : (2005) 8 SCC 89

3 (2018) 14 SCC 202

4 [2003] Suppl. 6 SCR 344 : (2004) 1 SCC 391

5 [2012] 11 SCR 466 : (2012) 13 SCC 375

[2024] 3 S.C.R. 653

Susela Padmavathy Amma v. M/S Bharti Airtel Limited

6. Shri Lakshmeesh S. Kamath, learned counsel for the respondent,

on the contrary, submitted that the learned judge of the High Court

has rightly, after considering the material on record, dismissed the

petition for quashing of criminal complaints qua the appellant. It is

submitted that the grounds raised are the defense of the accused

and it can only be raised at the stage of the trial. It is, therefore,

submitted that no interference is warranted in the present appeal.

7. In the case of State of Haryana vs. Brij Lal Mittal and others6

,

this Court observed thus:

“8. Nonetheless, we find that the impugned judgment of

the High Court has got to be upheld for an altogether

different reason. Admittedly, the three respondents were

being prosecuted as directors of the manufacturers with

the aid of Section 34(1) of the Act which reads as under:

“34. Offences by companies.—(1) Where an offence

under this Act has been committed by a company,

every person who at the time the offence was

committed, was in charge of, and was responsible to

the company for the conduct of the business of the

company, as well as the company shall be deemed

to be guilty of the offence and shall be liable to be

proceeded against and punished accordingly:

Provided that nothing contained in this subsection shall render any such person liable to

any punishment provided in this Act if he proves

that the offence was committed without his

knowledge or that he exercised all due diligence

to prevent the commission of such offence.”

It is thus seen that the vicarious liability of a person for

being prosecuted for an offence committed under the Act

by a company arises if at the material time he was in

charge of and was also responsible to the company for

the conduct of its business. Simply because a person is a

director of the company it does not necessarily mean that

6 [1998] 3 SCR 104 : (1998) 5 SCC 343

654 [2024] 3 S.C.R.

Digital Supreme Court Reports

he fulfils both the above requirements so as to make him

liable. Conversely, without being a director a person can

be in charge of and responsible to the company for the

conduct of its business. From the complaint in question

we, however, find that except a bald statement that the

respondents were directors of the manufacturers, there is

no other allegation to indicate, even prima facie, that they

were in charge of the company and also responsible to

the company for the conduct of its business.”

8. It could thus be seen that this Court had held that simply because

a person is a director of the company, it does not necessarily mean

that he fulfils the twin requirements of Section 34(1) of the said Act

so as to make him liable. It has been held that a person cannot be

made liable unless, at the material time, he was in-charge of and

was also responsible to the company for the conduct of its business.

9. In the case of S.M.S. Pharmaceuticals Ltd. (supra), this Court was

considering the question as to whether it was sufficient to make the

person liable for being a director of a company under Section 141

of the Negotiable Instruments Act, 1881. This Court considered the

definition of the word “director as defined in Section 2(13) of the

Companies Act, 1956. This Court observed thus:

“8. ....... There is nothing which suggests that simply by

being a director in a company, one is supposed to discharge

particular functions on behalf of a company. It happens

that a person may be a director in a company but he may

not know anything about the day-to-day functioning of the

company. As a director he may be attending meetings of

the Board of Directors of the company where usually they

decide policy matters and guide the course of business

of a company. It may be that a Board of Directors may

appoint sub-committees consisting of one or two directors

out of the Board of the company who may be made

responsible for the day-to-day functions of the company.

These are matters which form part of resolutions of the

Board of Directors of a company. Nothing is oral. What

emerges from this is that the role of a director in a company

is a question of fact depending on the peculiar facts in

each case. There is no universal rule that a director of 

[2024] 3 S.C.R. 655

Susela Padmavathy Amma v. M/S Bharti Airtel Limited

a company is in charge of its everyday affairs. We have

discussed about the position of a director in a company in

order to illustrate the point that there is no magic as such

in a particular word, be it director, manager or secretary.

It all depends upon the respective roles assigned to the

officers in a company. .....”

10. It was held that merely because a person is a director of a company,

it is not necessary that he is aware about the day-to-day functioning

of the company. This Court held that there is no universal rule that

a director of a company is in charge of its everyday affairs. It was,

therefore, necessary, to aver as to how the director of the company

was in charge of day-to-day affairs of the company or responsible

to the affairs of the company. This Court, however, clarified that

the position of a managing director or a joint managing director

in a company may be different. This Court further held that these

persons, as the designation of their office suggests, are in charge of

a company and are responsible for the conduct of the business of

the company. To escape liability, they will have to prove that when

the offence was committed, they had no knowledge of the offence

or that they exercised all due diligence to prevent the commission

of the offence.

11. In the case of Pooja Ravinder Devidasani vs. State of Maharashtra

and another7

 this Court observed thus:

“17. ....... Every person connected with the Company will

not fall into the ambit of the provision. Time and again, it

has been asserted by this Court that only those persons

who were in charge of and responsible for the conduct of

the business of the Company at the time of commission

of an offence will be liable for criminal action. A Director,

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 an offence under Section 141 of

the NI Act. In National Small Industries Corpn. [National

Small Industries Corpn. Ltd. v. Harmeet Singh Paintal,

(2010) 3 SCC 330 : (2010) 1 SCC (Civ) 677 : (2010) 2

7 [2014] 14 SCR 1468 : (2014) 16 SCC 1

656 [2024] 3 S.C.R.

Digital Supreme Court Reports

SCC (Cri) 1113] this Court observed: (SCC p. 336, paras

13-14)

“13. Section 141 is a penal provision creating vicarious

liability, and which, as per settled law, must be strictly

construed. It is therefore, not sufficient to make a bald

cursory statement in a complaint that the Director (arrayed

as an accused) is in charge of and responsible to the

company for the conduct of the business of the company

without anything more as to the role of the Director. But the

complaint should spell out as to how and in what manner

Respondent 1 was in charge of or was responsible to the

accused Company for the conduct of its business. This is

in consonance with strict interpretation of penal statutes,

especially, where such statutes create vicarious liability.

14. A company may have a number of Directors and to

make any or all the Directors as accused in a complaint

merely on the basis of a statement that they are in charge

of and responsible for the conduct of the business of

the company without anything more is not a sufficient or

adequate fulfilment of the requirements under Section 141.”

(emphasis in original)

18. In Girdhari Lal Gupta v. D.H. Mehta [Girdhari Lal Gupta

v. D.H. Mehta, (1971) 3 SCC 189 : 1971 SCC (Cri) 279 :

AIR 1971 SC 2162] , this Court observed that a person “in

charge of a business” means that the person should be in

overall control of the day-to-day business of the Company.

19. A Director of a company is liable to be convicted for

an offence committed by the company if he/she was in

charge of and was responsible to the company for the

conduct of its business or if it is proved that the offence

was committed with the consent or connivance of, or was

attributable to any negligence on the part of the Director

concerned (see State of Karnataka v. Pratap Chand [State

of Karnataka v. Pratap Chand, (1981) 2 SCC 335 : 1981

SCC (Cri) 453] ).

20. In other words, the law laid down by this Court is that

for making a Director of a company liable for the offences 

[2024] 3 S.C.R. 657

Susela Padmavathy Amma v. M/S Bharti Airtel Limited

committed by the company under Section 141 of the NI

Act, there must be specific averments against the Director

showing as to how and in what manner the Director was

responsible for the conduct of the business of the company.

21. In Sabitha Ramamurthy v. R.B.S. Channabasavaradhya

[Sabitha Ramamurthy v. R.B.S. Channabasavaradhya,

(2006) 10 SCC 581 : (2007) 1 SCC (Cri) 621] , it was held

by this Court that: (SCC pp. 584-85, para 7)

“7. ... it is not necessary for the complainant to specifically

reproduce the wordings of the section but what is required

is a clear statement of fact so as to enable the court to

arrive at a prima facie opinion that the accused is vicariously

liable. Section 141 raises a legal fiction. By reason of the

said provision, a person although is not personally liable for

commission of such an offence would be vicariously liable

therefor. Such vicarious liability can be inferred so far as a

company registered or incorporated under the Companies

Act, 1956 is concerned only if the requisite statements,

which are required to be averred in the complaint petition,

are made so as to make the accused therein vicariously

liable for the offence committed by the company.”

(emphasis supplied)

By verbatim reproducing the words of the section without

a clear statement of fact supported by proper evidence,

so as to make the accused vicariously liable, is a ground

for quashing proceedings initiated against such person

under Section 141 of the NI Act.”

12. It could thus clearly be seen that this Court has held that merely

reproducing the words of the section without a clear statement of

fact as to how and in what manner a director of the company was

responsible for the conduct of the business of the company, would

not ipso facto make the director vicariously liable.

13. A similar view has previously been taken by this Court in the case

of K.K. Ahuja vs. V.K. Vora and another8

.

8 [2009] 9 SCR 1144 : (2009) 10 SCC 48

658 [2024] 3 S.C.R.

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14. In the case of State of NCT of Delhi through Prosecuting Officer,

Insecticides, Government of NCT, Delhi vs. Rajiv Khurana9

, this

Court reiterated the position thus:

“17. The ratio of all these cases is that the complainant

is required to state in the complaint how a Director who

is sought to be made an accused, was in charge of the

business of the company or responsible for the conduct of

the company’s business. Every Director need not be and

is not in charge of the business of the company. If that

is the position with regard to a Director, it is needless to

emphasise that in the case of non-Director officers, it is

all the more necessary to state what were his duties and

responsibilities in the conduct of business of the company

and how and in what manner he is responsible or liable.”

15. In the case of Ashoke Mal Bafna (supra), this Court observed thus:

“9. To fasten vicarious liability under Section 141 of the

Act on a person, the law is well settled by this Court in a

catena of cases that the complainant should specifically

show as to how and in what manner the accused was

responsible. Simply because a person is a Director of a

defaulter Company, does not make him liable under the

Act. Time and again, it has been asserted by this Court

that only the person who was at the helm of affairs of

the Company and in charge of and responsible for the

conduct of the business at the time of commission of

an offence will be liable for criminal action. (See Pooja

Ravinder Devidasani v. State of Maharashtra [Pooja

Ravinder Devidasani v. State of Maharashtra, (2014) 16

SCC 1 : (2015) 3 SCC (Civ) 384 : (2015) 3 SCC (Cri)

378 : AIR 2015 SC 675].)

10. In other words, the law laid down by this Court is

that for making a Director of a Company liable for the

offences committed by the Company under Section 141

of the Act, there must be specific averments against

the Director showing as to how and in what manner the

9 [2010] 9 SCR 387 : (2010) 11 SCC 469

[2024] 3 S.C.R. 659

Susela Padmavathy Amma v. M/S Bharti Airtel Limited

Director was responsible for the conduct of the business

of the Company.”

16. A similar view has been taken by this Court in the case of Lalankumar

Singh and others vs. State of Maharashtra10 to which one of us

(B.R. Gavai, J.) was a party.

17. In the light of this settled legal position, let us examine the averments

made in the complaints.

18. It will be relevant to refer to para 16 of the complaint bearing No.

CC 3151/2017 filed by the respondent before the Court of XVIII

Metropolitan Magistrate, Saidapet, Chennai dated 30th November

2016, which reads thus:

“16. The Complainant states that the Accused has an

intention of cheating the Complainant. The 2nd and 3rd

Accused herein has no intention to pay the dues that

they owe to the Complainant. Instead, making the

complainant believe that the same would be paid and

through which trying to push the liability to future. It is

also pertinent to note that the 2nd and 3rd of the Accused

herein are the Directors, promoters of the 1st Accused

being the Company. The 2nd of the Accused herein

is the authorized signatory, who is in-charge of and

responsible for the day to day affairs of the Company,

the 1st Accused.”

19. It can thus be seen that the only allegation against the present

appellant is that the present appellant and the accused No.2 had

no intention to pay the dues that they owe to the complainant. It is

stated that the 2 nd accused and the 3rd accused (appellant herein)

are the Directors, promoters of the 1st accused being the Company.

It is further averred that the 2 nd accused is the authorized signatory,

who is in-charge of and responsible for the day-to-day affairs of the

Company, i.e., the 1st accused.

20. It can thus be clearly seen that there is no averment to the effect

that the present appellant is in-charge of and responsible for the

day-to-day affairs of the Company. It is also not the case of the

10 [2022] 14 SCR 573 : 2022 SCC OnLine SC 1383

660 [2024] 3 S.C.R.

Digital Supreme Court Reports

respondent that the appellant is either the Managing Director or the

Joint Managing Director of the Company.

21. It can thus clearly be seen that the averments made are not sufficient

to invoke the provisions of Section 141 of the N.I. Act qua the appellant.

22. In the result, we find that the present appeals deserve to be allowed.

It is ordered accordingly. The judgment and order passed by the

High Court dated 26th April, 2022 is quashed and set aside. The

proceedings in CC Nos. 3151 and 3150 of 2017 on the file of learned

XVIII Metropolitan Magistrate, Saidapet, Chennai (now transferred to

the learned Metropolitan Magistrate, Fast Track Court-III, Saidapet,

Chennai) in connection with the offence punishable under Section

138 read with Section 142 of the N.I. Act are quashed and set aside

qua the present appellant.

Headnotes prepared by: Ankit Gyan Result of the case:

Appeals allowed.