In Brief
Standard Chartered Bank sued ABG Shipyard Ltd. and its directors under Section 138 of the Negotiable Instruments Act, 1881 for dishonored cheques. The High Court quashed summons against two Executive/Whole-Time Directors, finding insufficient averments connecting them to the offence. The Supreme Court held that criminal liability arises from actual charge of the company's business at the relevant time, not mere designation. The complaint's clear averments that the respondents were in charge of day-to-day business satisfied Section 141 requirements. The Court allowed the appeal and set aside the High Court's order, directing the Magistrate to proceed with the case.
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