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Supreme Court of India 2019-07-30 allowed

ANIL KHADKIWALA vs THE STATE GOVT. OF NCT OF DELHI

Bench: 2 — Ashok Bhushan, Navin Sinha

In Brief

The appellant, formerly a director of ETI Projects Ltd., was prosecuted under the Negotiable Instruments Act for dishonored cheques issued in 2001 after his resignation in January 2001. His first quashing application under Section 482 of the Code of Criminal Procedure was dismissed in 2007. He filed a second application presenting documentary evidence (Form 32 from the Companies Register) proving his prior resignation. The High Court dismissed it, reasoning that no second application was maintainable following the earlier dismissal. The Supreme Court allowed the appeal, holding that a successive application is maintainable where changed circumstances or additional material evidence are presented, and that proceeding against someone who ceased to be a director before the cheques were issued constitutes an abuse of process.

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Criminal Procedure Negotiable Instruments Cheque Dishonor Directors' Liability Quashing of Proceedings Inherent Powers of Court

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