(A) Negotiable Instruments Act, 1881 Sections—138,141,142—Dishonour of cheque—Maintainability—Fatal defect in complaint—Cheque drawn on company's account—Company not impleaded as accused—Where the cheque is drawn on an account maintained by a company, the company is the principal offender for the purposes of Section—138—Whether complaint maintainable—Held—No—Arraignment of company is imperative—“Commission of offence by company” is a condition precedent for fastening vicarious liability under Section 141—Complaint in absence of company as accused suffers from a fatal defect—Complaint quashed—Appeal allowed. (Paras 8,11&14)
(B) Criminal Procedure Code, 1973 Section—319—Power to proceed against person appearing to be guilty of offence—Dishonour of cheque—omission to implead company—Held—That, where the complaint itself was incompetent for want of arraignment of the company, there is no valid institution of proceedings against the company which can be revived or supplemented through Section—319 Cr.P.C—It cannot be used as device to initiate prosecution against company after expiry of limitation prescribed under Section—142 NI Act—The High Court, therefore, exceeded its jurisdiction in directing the Trial Court to suo motu implead the company and conduct a de novo trial—Only a fresh complaint, if otherwise within limitation, may be instituted after curing the defect. (Paras 15&16)