# In the matter of Varun vs. Toolika Pandey

> HC judgment dated 2024-03-28. Citation: TCN-2024-HC-00111. The case involves a petition filed by Varun under Section 482 of the Code of Criminal Procedure,…

- **Court:** HC
- **Order date:** 28 Mar 2024
- **Citation:** TCN-2024-HC-00111
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/varun-vs-toolika-pandey-80ef22ef

## Summary

### Background

The case involves a petition filed by Varun under Section 482 of the Code of Criminal Procedure, 1973, seeking to quash a complaint (CC No.1940/2020) filed against him by Toolika Pandey. The complaint alleges offences under Sections 138, 141, and 142 of the Negotiable Instruments Act, 1881, related to dishonored cheques issued by Today Homes and Infrastructure Pvt. Ltd. The petitioner, Varun, argues that he joined the company as a Non-Executive Director after the cheques were issued and that a moratorium was imposed on the company by the NCLT before the cheques were presented for encashment.

## Facts

Toolika Pandey filed a complaint against Today Homes and Infrastructure Pvt. Ltd. and its directors, including Varun, alleging offences under Sections 138, 141, and 142 of the Negotiable Instruments Act, 1881, due to dishonored cheques. The cheques were issued in relation to a project named 'Canary Greens' in Behrampur, Sector-73, District Gurugram, Haryana. Toolika Pandey had booked flats in the project. The NCDRC directed the accused to refund the amount paid by the respondent along with interest. The respondent alleges that the accused nos.4 and 5 acting for and on behalf of the accused no.1 company, issued six post-dated cheques. The cheques were presented for encashment after the NCLT issued a moratorium against the company and appointed an Interim Resolution

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## Issues and analysis

### Issue 1: Whether the petitioner, Varun, can be held liable under Section 138 of the Negotiable Instruments …

**Ratio:** A Non-Executive Director cannot be held liable for offences under Section 138 of the NI

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**Reasoning:** The court reasoned that Varun was appointed as a Non-Executive Director after the cheques

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**Interpretation:** The interpretation of Section 138 of the NI Act requires that the person being

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**Application:** In this case, Varun's appointment as a Non-Executive Director after the

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## Parties

- **Judges:** NAVIN C…
- **Appellants:** VARU…
- **Respondents:** Today Homes &…; TOOLIKA P…
- **Other parties:** Kohi…

## Timeline

- **2017-01-31 — NCDRC Or…**: The NCDRC directed the accused to refund the amount paid by the respondent along with…
- **2018-09-26 — Execution Petit…**: Order passed in Execution Application…

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