In Brief
A company director and another director were prosecuted for issuing dishonored cheques after the company failed to repay an investor's Rs. 1,81,50,000. The High Court quashed the proceedings against them. The Supreme Court held that Directors can be prosecuted under the Negotiable Instruments Act if the complaint specifically alleges they were in charge of the company's business. Since the complaint made such specific averments and the respondents provided no definitive evidence to the contrary, the High Court should not have quashed the proceedings. The Court restored the trial and directed expedited disposal.
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