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| The Tax Publishers 2019 TaxPub(CL) 1336 (Bom-HC) NEGOTIABLE INSTRUMENTS ACT, 1881
Section 138
Where Trial Court issued process against company and its directors for offence punishable under section 138, the issue whether applicant was playing active role in day-to-day affairs of company at relevant time or not, was to be decided only during trial.
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Dishonour of cheque for insufficiency etc., of funds in account - Issuance of process against company and directors - Involvement of applicant-director in day-to-day affairs of company or not -
Respondent-company gave loan to company 'D'. 'D' issued cheques in favour of respondent in discharge of its liability. Out of said cheques, one cheque got dishonoured due to insufficient funds. Respondent sent a legal notice to 'D' and its directors; however, none of them responded to said notice. The respondent filed a complaint under section 138. Trial Court passed an order directing issuance of process against 'D' and its directors including applicant for offence punishable under section 138. Held: It was noted that applicant was an independent director 'D' and, whether he was playing active role in day-to-day affairs of company at relevant time or not, was to be decided only during trial Thus, order of issuance of process could not be interfered with.
REFERRED : Alok sharma v. State of Maharashtra [Writ Petition No. 834 of 2017, dt. 10-2-2015] and Indian Bank Association v. UOI (2014) 45 Taxmann.com 79/126 SCL 349.
FAVOUR : Against the applicant.
A.Y. :
IN THE HIGH COURT OF BOMBAY
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