P&H: Refuses To Quash cheque bounce case Against Former Directors, Says Resignation Defence Requires Trial
High Court has declined to quash a cheque dishonour complaint against two former directors of a company, holding that their resignation and DIR-12 records cannot be a ground to terminate proceedings at the threshold when the complaint contains specific averments of their involvement. Court dismissed a petition under Section 482 CrPC (now corresponding to Section 528 BNSS) and another against a 2019 complaint under Sections 138 and 141 of the Negotiable Instruments Act.
The case arises from a cheque for Rs. 5,20,000 which was dishonoured for insufficiency of funds. The complainant alleged that the petitioners, as promoters/organisers controlling the company’s affairs, induced him to advance Rs. 4,00,000 and negotiated the transaction that led to issuance of the cheque.
The petitioners argued that they had resigned from the company in June 2017, much before the cheque was issued and dishonoured, and produced Form DIR-12 filed with the Registrar of Companies, contending these are public documents under the Evidence Act. They also emphasized that they were not signatories to the cheque and relied on Supreme Court...
