The case involves criminal appeals arising out of Special Leave Petitions (Crl.) No.6905 and No.7050 of 2022. The appellants, former directors of the respondent company, were accused in a complaint filed under Section 138 of the Negotiable Instruments Act, 1881, concerning dishonored cheques. The appellants had resigned from their directorships prior to the issuance of the cheques. The complainant-respondent initiated action after the cheques were dishonored due to insufficient funds. The appellants sought to quash the proceedings, which was dismissed by the High Court. The Supreme Court is now considering whether a director who has resigned can be held liable for negotiable instruments failing realization.
Rajesh Viren Shah and Sanjay Babulal Bhutada, the appellants, were directors of Redington (India) Limited, the respondent company. They resigned from their directorships on December 9, 2013, and March 12, 2014, respectively. Form 32, documenting their resignations, was accepted on December 9, 2013, and March 20, 2014. Subsequently, a complaint was filed against them under Section 138 of the Negotiable Instruments Act, 1881, concerning three dishonored cheques dated March 22, 2014. The cheques, bearing numbers 002535, 002777, and 002791, were for amounts of Rs.7,10,085/-, Rs.1,85,09,054/-, and Rs.10,00,000/-, respectively. The complaint was filed by the respondent company against M/s MIEL e-Security Private Limited and its directors, including Mr. Narayanan Kutty Nair.
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Rajesh Viren Shah…
Sanjay Babulal Bhutada…
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The case involves criminal appeals arising out of Special Leave Petitions (Crl.) No.6905 and No.7050 of 2022. The appellants, former directors of the respondent company, were accused in a complaint filed under Section 138 of the Negotiable Instruments Act, 1881, concerning dishonored cheques. The appellants had resigned from their directorships prior to the issuance of the cheques. The complainant-respondent initiated action after the cheques were dishonored due to insufficient funds. The appellants sought to quash the proceedings, which was dismissed by the High Court. The Supreme Court is now considering whether a director who has resigned can be held liable for negotiable instruments failing realization.
Rajesh Viren Shah and Sanjay Babulal Bhutada, the appellants, were directors of Redington (India) Limited, the respondent company. They resigned from their directorships on December 9, 2013, and March 12, 2014, respectively. Form 32, documenting their resignations, was accepted on December 9, 2013, and March 20, 2014. Subsequently, a complaint was filed against them under Section 138 of the Negotiable Instruments Act, 1881, concerning three dishonored cheques dated March 22, 2014. The cheques, bearing numbers 002535, 002777, and 002791, were for amounts of Rs.7,10,085/-, Rs.1,85,09,054/-, and Rs.10,00,000/-, respectively. The complaint was filed by the respondent company against M/s MIEL e-Security Private Limited and its directors, including Mr. Narayanan Kutty Nair.
…Rajesh Viren Shah…
Sanjay Babulal Bhutada…
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