[Section 138 NI Act] Chairman/Director Of The Company Cannot Be Prosecuted Without Impleading The Company As Accused: MP HC [Read Order]
The Madhya Pradesh High Court has observed that a Chairman of the company can not be prosecuted under Section 138 of the Negotiable Instruments Act unless the company is impleaded as an accused. A complaint was filed against the chairman of the company namely 'Well Built Industry India Ltd." after the cheque he had given under the capacity of chairman of the company got bounced. Referring to the provision, Justice Rajendra Kumar Srivastava observed that the Section 141 of the Negotiable Instruments Act deals with the offences committed by the companies and say that if an offence is committed by a company under Section 138 of the Act, every person, at the time, the offence was committed, was in-charge and responsible to the company in the conduct of the business of the company, is liable along with the company to be proceeded against and punished accordingly. A demand notice was served only on the petitioner/accused, there was no demand notice against company, therefore, without arraying the company as an accused in complaint case, the petitioner can not be prosecuted for the offence of Section 138 N.I.
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