K SRIKANTH SINGH Vs. NORTH EAST SECURITIES LTD

JUDGEMENT

(1.) LEAVE granted.

(2.) APPELLANT has been proceeded against for alleged commission of an offence under Section 138 of the Negotiable Instruments Act. First respondent filed a complaint in the court of 3rd Additional Chief Metropolitan Magistrate, Hyderabad. In regard to the liability of the appellant, which is vicarious in nature, the following statement has been made in paragraph 2 of the complaint petition which reads as under :

(3.) NEGOTIATION for obtaining financial assistance on behalf of the Company by its directors itself is not an ingredient for the purpose of constituting an offence under Section 138 of the Negotiable Instruments Act. Furthermore, a vicarious liability on the part of a person must be pleaded and proved. It cannot be a subject matter of mere inference.