# In the matter of Adarsh Saran and Anr. vs. Central Bank of India and Ors.

> HC judgment dated 2025-02-24. Citation: TCN-2025-HC-00074. The petitions were filed seeking the quashing of a summoning order dated 24.03.2018 passed by the…

- **Court:** HC
- **Order date:** 24 Feb 2025
- **Citation:** TCN-2025-HC-00074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/bombay-high-court-panaji/adarsh-saran-and-anr-vs-central-bank-of-india-and-ors-e8b858de

## Summary

### Background

The petitions were filed seeking the quashing of a summoning order dated 24.03.2018 passed by the Metropolitan Magistrate in a complaint case bearing CC No. 36097/2016. The complaint was filed under Section 138 of the Negotiable Instruments Act, 1881 against M/s West Haryana Highways and its directors for dishonour of a cheque.

## Facts

The Metropolitan Magistrate issued a summoning order dated 24.03.2018 against the petitioners.

The complaint was filed under Section 138 of the Negotiable Instruments Act, 1881.

The accused company, M/s West Haryana Highways, approached the complainant for a term loan.

The complainant sanctioned a Senior Term Debt of ₹100 crores vide Sanction letter dated 25.04.2008.

The accused company approached the complainant for restructuring of the existing debt of ₹88 crores.

A cheque for ₹1.5 crores issued by the accused company was dishonoured and returned with remarks 'Funds Insufficient'.

The petitioners were directors of the accused company.

The petitioners claimed they were not responsible for managing the day-to-day affairs of the company.

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## Issues and analysis

### Issue 1: Whether the petitioners, being directors of the accused company, were in charge of and responsible …

**Ratio:** A person cannot be arrayed as an accused person merely due to association with the

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**Reasoning:** The court relied on the Supreme Court's analysis of Section 141 of the NI Act in S.M.S.

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**Interpretation:** The words 'was in charge of' and 'was responsible to the Company for the

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**Application:** In the present case, the petitioners were sought to be roped in the case only

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## Parties

- **Judges:** Amit Ma…
- **Appellants:** Adarsh…; Alok Kh…
- **Respondents:** M/s West Haryana…; Central Bank of…
- **Other parties:** Mahesh Kumar…; Suresh S…
- **Advocates:** Siddharth A…; Bhavya…; +5 more

## Timeline

- **2018-03-24 — Summoning…**: The learned Metropolitan Magistrate…
- **2025-02-24 — Judgment De…**: Judgment delivered on…

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