Prosecution for dishonoured cheques possible against Company & its functionaries – SC

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Supreme Court of India

Aneeta Hada Vs. M/s. Godfather Travels & Tours Pvt. Ltd.

[Criminal Appeal No. 838 of 2008]

Anil Hada Vs. M/S. Godfather Travels & Tours Pvt. Ltd.

[With Criminal Appeal No. 842 of 2008]

Avnish Bajaj Vs. State

[With Criminal Appeal No. 1483 of 2009]

Ebay India Pvt. Ltd. Vs. State and ANR.

[And Criminal Appeal No. 1484 of 2009]

If the offence is by a Company, arraigning of a company as an accused is imperative: the company can have criminal liability and further, if a group of persons that guide the business of the companies have the criminal intent, that would be imputed to the body corporate. In this backdrop, Section 141 of the Act has to be understood. The said provision clearly stipulates that when a person which is a company commits an offence, then certain categories of persons in charge as well as the company would be deemed to be liable for the offences under Section 138. Thus, the statutory intendment is absolutely plain. As is perceptible, the provision makes the functionaries and the companies to be liable and that is by deeming fiction.