DATA ACCESS INDIA LIMITED N RANGACHARI VS BHARAT SANCHAR NIGAM LIMITED
DATA ACCESS (INDIA) LIMITED (N RANGACHARI) V/S BHARAT SANCHAR NIGAM LIMITED
Date of Decision: 19 April 2007
Negotiable Instruments Act, 1881 - Offences by Companies - Dishonour of cheque for insufficiency, etc., of funds in the account - Cognizance of offences
Acts Referred:
Code of Criminal Procedure, 1973 Sec 482
Companies Act, 1956 Sec 291
Negotiable Instruments Act, 1881 Sec 141, Sec 141(2), Sec 138, Sec 142
[3] On behalf of the Data Access (India) Limited, two cheques were issued to the respondent Bharat Sanchar Nigam Limited (hereinafter referred to as, "B.S.N.L."). The cheques were dated 31.8.2004. The cheques were duly presented by the B.S.N.L. but were dishonoured for insufficiency of funds. B.S.N.L. thereupon issued requisite notices calling upon the Data Access (India) Limited to pay the amounts due under the cheques. The payments not having been made, B.S.N.L. filed a compliant under Section 138 of the Negotiable Instruments Act, 1881. In the complaint, B.S.N.L. alleged that the cheques were issued to it by the Data Access (India) Limited in discharge of a pre-existing liability based on the business transactions between the companies. The appellant herein and respondent No. 2 in the complaint were the Directors of respondent No. 1 Company and they were in charge of and responsible for the conduct of the business of Data Access (India) Limited. The relevant statement in the complaint read: "That accused No. 1 is a company incorporated under the Companies Act. Accused Nos. 2 and 3 are its Directors. They are incharge of and responsible to accused No.1 for conduct of business of accused No. 1 Company. They are jointly and severally liable for the acts of accused No. 1."
[4] The complaint also stated that in response to the notice issued by B.S.N.L., a reply had been sent claiming that the appellant was no longer the Chairman or Director of Data Access (India) Limited and accused No. 2 was not aware of the issuance of the cheques. These statements
Date of Decision: 19 April 2007
Negotiable Instruments Act, 1881 - Offences by Companies - Dishonour of cheque for insufficiency, etc., of funds in the account - Cognizance of offences
Acts Referred:
Code of Criminal Procedure, 1973 Sec 482
Companies Act, 1956 Sec 291
Negotiable Instruments Act, 1881 Sec 141, Sec 141(2), Sec 138, Sec 142
[3] On behalf of the Data Access (India) Limited, two cheques were issued to the respondent Bharat Sanchar Nigam Limited (hereinafter referred to as, "B.S.N.L."). The cheques were dated 31.8.2004. The cheques were duly presented by the B.S.N.L. but were dishonoured for insufficiency of funds. B.S.N.L. thereupon issued requisite notices calling upon the Data Access (India) Limited to pay the amounts due under the cheques. The payments not having been made, B.S.N.L. filed a compliant under Section 138 of the Negotiable Instruments Act, 1881. In the complaint, B.S.N.L. alleged that the cheques were issued to it by the Data Access (India) Limited in discharge of a pre-existing liability based on the business transactions between the companies. The appellant herein and respondent No. 2 in the complaint were the Directors of respondent No. 1 Company and they were in charge of and responsible for the conduct of the business of Data Access (India) Limited. The relevant statement in the complaint read: "That accused No. 1 is a company incorporated under the Companies Act. Accused Nos. 2 and 3 are its Directors. They are incharge of and responsible to accused No.1 for conduct of business of accused No. 1 Company. They are jointly and severally liable for the acts of accused No. 1."
[4] The complaint also stated that in response to the notice issued by B.S.N.L., a reply had been sent claiming that the appellant was no longer the Chairman or Director of Data Access (India) Limited and accused No. 2 was not aware of the issuance of the cheques. These statements