G BASKARAN Vs. S MOHAMMED ALI JINNAH

JUDGEMENT

(1.) THE petitioner is accused No.2 in the complaint laid by the respondents before the Judicial Magistrate No.III, Madurai in STC No.3064 of 2004. Totally there are four accused. THE 3rd and 4th accused are the Directors of the first accused establishment. In the complaint it is alleged that the present petitioner was introduced to the complainant by one Kareem of Kajimar Street, Madurai who was also engaged in the business. THE said Kareem died on 24.05.2002. THE petitioner had received a sum of Rs.3,00,000/- (Rupees three lakhs only) on 25.03.2002 as emergent loan on behalf of the first accused establishment, Pandian Hotel (Private) Limited, Madurai for their business purpose and evidencing the same the petitioner issued a cheque drawn on Canara Bank, Madurai dated 30.12.2002 in the capacity of Manager of the first respondent establishment. THE complainant presented the Cheque for collection through his bank, viz., Indian Overseas Bank, Madurai District Court extension counter on 22.05.2003. But it was dishonoured due to closure of the Bank account. THEreafter, a statutory notice was issued and then complaint came to be laid.

(2.) THE petitioner has come forward before this Court for quashing the proceedings in the above criminal case by stating that he was terminated from service of the first accused Company as early as on 19.07.2000 as evident from the Form-32 issued by the Assistant Registrar of Companies. It is stated therein that the petitioner was terminated from service on 19.07.2000. It is his further contention that since the petitioner was not serving as Manager on the date of issuing the cheque, he is not at all liable for the debt and that he was not holding any responsibility in the Company for conduct of business.

(3.) THE learned counsel relied upon the decision reported in Sabitha Ramamurthy and another Vs. R.B.S. Channabasavaradhya (2006 4 CTC 684) (S.C) wherein THEir Lordships have categorically held that "by reason of the above 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 be averred in the Complaint Petition, are made so as to make the accused therein vicariously liable for the offence committed by the company".