In Brief
A Director of a company issued a cheque for Rs. 4,15,000 on behalf of the company, which bounced. A complaint was filed against the Director alone, without arraying the company as an accused. The High Court dismissed the Director's petition to quash the complaint. The Supreme Court held that the company must be an accused in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, and that the statutory notice of demand must be served on the company. Without these prerequisites being met, the complaint against the Director alone was not maintainable. The Court allowed the appeal, quashed the complaint, and directed disbursement of the amount deposited by the Director during proceedings to the complainant with accrued interest.
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