S.Sivakumar vs M/S.Rajnarayan Capital Markets ...
2024 Latest Caselaw 4759 Mad

Citation : 2024 Latest Caselaw 4759 Mad
Judgement Date : 1 March, 2024

Madras High Court

S.Sivakumar vs M/S.Rajnarayan Capital Markets ... on 1 March, 2024

Author: G.Jayachandran

Bench: G.Jayachandran

    2024:MHC:1159




                             BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                              DATED:01.03.2024

                                                   CORAM:

                                  THE HONOURABLE DR.JUSTICE G.JAYACHANDRAN

                                           CRL.A(MD) No.116 of 2012

                     S.Sivakumar                       ... Appellant/Complainant


                                                      -vs-


                     1.M/s.Rajnarayan Capital Markets Services Limited(New Name),
                       (Formerly known as)
                       Rajnarayan Financial Service Limited,
                       Rajnarayan Towers,
                       70-B, Race Course,
                       Coimbatore – 641 018,
                       represented by C.Krishnakumar, Director.

                     2.N.Thiagarajan,
                       Son of V.Nagappa Chettiar,
                       Chairman-Rajnarayan Capital Markets Services Limited,
                       70-B, Race Course,
                       Coimbatore – 641 018.

                     3.Kasi.V.Thiagarajan,
                       Son of N.Thiagarajan,
                       Director – Rajnarayan Capital Markets Services Limited,
                       70-B Race Course,
                       Coimbatore – 641 018

                     4.C.Krishnakumar,
                       Director – Rajnarayan Capital Markets Services Limited,
                       No.45, Tatabad First Street,


                     1/6

https://www.mhc.tn.gov.in/judis
                        Indian Bank Road,
                        Coimbatore – 641 012.

                     5.D.Ravikumar,
                       Director-Rajnarayan Capital Markets Services Limited,
                       No.2-B, Riaz Gardan,
                       1213, Kodambakkam High Road,
                       Nungambakkam,
                       Chennai – 34.                 ... Respondents/Accused


                     PRAYER : Criminal Appeal filed under Section 378 of Criminal
                     Procedure Code praying this Court to set aside the judgment made in
                     C.C.No.437 of 2001, dated 17.12.2011, on the file of learned Judicial
                     Magistrate No.IV, Trichy,Trichy District.


                                  For Appellant     : Mr.S.Ramsundar Vijayaraj
                                                      for M/s.C.Jegannathan


                                  For Respondent-1 : Mr.V.Karthikeyan


                                                      JUDGMENT

This Criminal Appeal is directed against the dismissal of the

private complaint initiated under Section138 of Negotiable Instruments

Act.

2.The Short point involved in this case is that a private

complaint under Section 138 of Negotiable Instruments Act was

https://www.mhc.tn.gov.in/judis lodged against six persons including the company, which is arrayed as

fist accused. Accoding to the compainant, one Sivaraj as third accused

had borrowed a sum of Rs.10 lakhs on behalf of the company/first

accused and to discharge the debt, on behalf of the company, gave

two cheques, dated 30.06.2001, each for Rs.5 lakhs by the third

respondent. However, when the cheques were presented for collection,

it got bounced with an endorsement as ‘’insufficient fund’’. Hence the

complaint.

3.The respondents herein made a specific defense that they

are not aware of the transaction between the complainant and the

third acused Sivaraj, who issued the cheques. The respondents are

the Directors of the company, but they are not in active administration

of the company as alleged in the complaint and they had no knowledge

about the cheques issued by Sivaraj. Furthermore, it was also

contended that the said Sivaraj has issued the said cheques of the

company after he resigned from the Directorship on 14.05.2001.

4.Pending trial, the said Sivaraj remained absent and hence

the case against him was split up and the same is still pending before

https://www.mhc.tn.gov.in/judis the trial Court. As against the remaining accused, the trial Court had

accepted the case of the defense and held that the respondents herein

cannot be liable for the cheques drawn by the absconding accused

Sivaraj.

5.Since there is no material placed by the appellant that the

respondents were in active participation of the affairs of the company

and had knowledge about the issuance of the cheques by the said

Sivaraj, this Court on reappreciation of the evidence hold that the

findings of the trial Court is in tune with the dictum laid down by the

Honourable Apex Court regarding vicarious liabiliy of the Company

Directors under under Section 141 of Negotiable Instruments Act.

Hence this Criminal Appeal stands dismissed, as devoid of merits.




                                                                           01.03.2024



                     NCS       : Yes/No
                     Index    : Yes / No
                     Internet : Yes / No

                     vsn

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