In Brief
A company director issued a cheque that was dishonoured due to insufficient funds. The payee filed a complaint under Section 138 of the Negotiable Instruments Act against the director personally, without naming the company. The director challenged this via Section 482 petition, arguing the company must be an accused. The High Court rejected the petition. The Supreme Court held that Section 141 makes it imperative to arraign the company as an accused before prosecuting a director. The company cannot be impleaded later without proper notice of demand. The appeal was allowed, the complaint was quashed, and the deposited cheque amount was directed to be paid to the complainant."
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