News

Cheque Dishonour: SC Quashes Complaint Against Director Not In Charge Of Business

In a judgment dated March 15, 2024, the Supreme Court set aside the criminal proceedings against the appellant director for dishonour of cheque, observing that there was no averment in the complaints that she was in charge of and responsible for the day-to-day affairs of the company.[1]

The appellant approached the Apex Court after her plea was rejected by the Madras High Court in the year 2022. It was asserted by the appellant that the complaints did not specify as to how and in what manner the appellant was responsible for the conduct of the company’s business. Further, the appellant was not made a signatory to the cheque.

Accepting the contentions of the appellant, the Supreme Court noted that there was indeed no averment in the complaints to the effect that the appellant was in charge of and responsible for the day-to-day affairs of the company. The complainant had also not contended that the appellant was the managing director or joint managing director of the company.

Allowing the appeals, the Court set aside the order of the Madras High Court as well as the criminal proceedings qua the appellant.

[1] Susela Padmavathy Amma v. M/s. Bharti Airtel Limited (Crl.A. No.1577-1578/ 2024)

 

Date: March 26, 2024