ANIL GUPTA versus STAR INDIA PVT. LTD. & ANR

Citation: [2014] 8 S.C.R. 183 · Decided: 07-07-2014 · Supreme Court of India · Bench: S. J. MUKHOPADHAYA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

[2014] 8 S.C.R. 183 
ANIL GUPTA 
v. 
STAR INDIA PVT. LTD. & ANR. 
(Criminal Appeal No.1364 of 2014) 
JULY 07, 2014 
[SUDHANSU JYOTI MUKHOPADHAYA AND 
V. GOPALA GOWDA, JJ.] 
NEGOTIABLE INSTRUMENTS ACT, 1881: 
A 
B 
c 
ss.138 and 141 - Complaint against a Company and its 
Managing Director alleging disonour of cheques issued by 
Company - Summons issued against company quashed by 
High Court - Maintainability of criminal proceedings against 
Managing Director (appellant) alone - Held: Only the drawer 
0 
of the cheque falls within the ambit of s. 138 of the Act whether 
human being or a body 'Corporate or even a firm -- The guilt 
of offence u/s 138 will be deemed to be upon other persons 
connected with the Company in view of s.141 - In the instant 
case, High Court ha~held that complaint against Company 
was not maintainable and quashed summons against it -- As 
E 
Company is not a party to the proceedings u/s 138 rlw s.141, 
the remaining part of the impugned judgment whereby High 
Court has held that proceedings against appellant can be 
continued, is set aside and summons and proceedings 
1 against him pursuant to the complaint are quashed. 
Respondent no. 1 filed a criminal complaint for 
offences u/ss 138 and 141 of the Negotiable Instruments 
Act, 1988 against respondent no. 2, Company and the 
F 
I 
appellant-Managing Director alleging dishonour of 
G 
cheques issued by respondent no. 2, Company. On a 
petition u/s 482 Cr.PC filed jointly by respondent no. 2, 
Company and the appellant, the High Court quashed the 
summons issued against the company and relying on 
183 
H 
184 
SUPREME COURT REPORTS 
[2014] 8 S.C.R. 
A Anil Hada's1 case held that proceedings against the 
Director could be continued. 
In the instant appeal filed by the Managing Director 
of the Company, it was contended that since the 
B proceedings against the company were quashed, the 
same could not be continued against him as he was only 
vicariously liable. 
Allowing the appeal, the Court 
c 
HELD 
1.1. Only the drawer of the cheque falls within the 
ambit of s.138 of the Negotiable Instruments Act, 1881 
whether human being or a body corporate or even a firm. 
The guilt of offence uls 138 will be deemed to be upon 
D other persons connected with the Company in view of 
s.141 of the Act. [paras 10-11] [189-C-D] 
E 
Anil Hada v. Indian Acrylic Ltd. 1999 (5) Suppl. SCR 6 
= (2000) 1 sec 1- stood overruled. 
Aneeta Hada v. Godfather Travels and Tours Pvt. Ltd. 
2012 (5) SCR 503 = (2012) 5 SCC 661; and Aneeta Hada 
v. Godfather Travels and Tours Pvt. Ltd. (2008) 13 SCC 703 
- relied on. 
F 
1.2. In the instant case, the High Court by impugned 
judgment held that the complaint against respondent 
no.2-Company was not maintainable and quashed the 
summons issued by the trial court against respondent 
no.2-Company. Thereby, the Company being not a party 
G to the proceedings uls 138 read with s.141 of the Act and 
in view of the fact that part of the judgment referred to 
by the High Court in Anil Hada has been overruled by 
three Judge Bench of this Court in Aneeta Hada, the rest 
part of the impugned judgment whereby the High Court 
H 1. 
1999 (5) Suppl. SCR 6. 
ANIL GUPTA v. STAR INDIA PVT. LTD. & ANR. 
185 
has held that the proceedings against the appellant can 
A 
be continued even in absence of the Company, has to be 
set aside. Accordingly, that part of the impugned 
judgment passed by the High Court so far it relates to 
appellant is set aside and the summons and proceedings 
pursuant to complaint case No.698 of 2001 qua the 
B 
appellant are quashed. [paras 15-16] [193-F-H; 194-A-B] 
Case Law Reference: 
1999 (5) Suppl. SCR 6 Stood overruled 
(2008) 13 SCC 703 
Relied on 
para 6 
para 13 
" 
2012 (5) SCR 503 
Relied on 
para 14 
CRIMINAL AP PELLA TE JURISDICTION : Criminal Appeal 
No. 1364 of 2014. 
From the Judgment and Order dated 13.08.2007 in CMP 
No. 2380/2004 of the High Court of Delhi at N. Delhi. 
Ashok Mathur for the Appellant. 
c 
D 
Aman Lekllli, R.N. Karanjawala, Manik Karanjawala, 
E 
Sandeep Kapue, Shivek Trehan, Prem Prakash for the 
Respondents. 
The Judgment of the Court was delivered by. 
SUDHANSU JYOTI MUKHOPADHAYA, J.: 1. Leave 
F 
: gran.ted. 
2. This appeal is directed against the judgment dated 13th 
August, 2007 passed by the High Court of Delhi at New Delhi 
in Criminal Miscellaneous Case No.2380 of 2004. By the 
impugned judgment, the High Court held that the complaint 
G 
under Section 138 read with Section 141
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