In Brief
The appellants, Directors of a private company, were summoned to face charges under Section 138 of the Negotiable Instruments Act for a dishonoured cheque of Rs. 10 lakhs issued by the company. They challenged the summons through a Section 482 petition, arguing that as non-signatory, non-managing Directors, they could not be held liable merely by virtue of their directorship. The Supreme Court upheld the High Court's dismissal of the petition, holding that while specific averment that Directors were in charge of business is required under Section 141 NI Act, where the complaint as a whole adequately alleges such responsibility and control at the time of dishonour, the Magistrate properly issued summons and the case should proceed to trial.
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