In a cheque bounce case, the Madhya Pradesh High Court set aside the order of Appellate Court of denovo trial of a case. 

The case goes around wherein a criminal complaint under Section 138 of the Negotiable Instrument Act has been filed against the petitioner. The case was decided and conviction was awarded by Judicial Magistrate First Class. 

The Appellate Court was of the view there are two accused persons in the complaint case preferred by the respondent, first Company and second Petitioner, but particulars of charge were never read over and explained to the Company i.e. accused no.1. It concluded that this lapse has vitiated the entire trial, therefore, remanded back the case for denovo trial after compliance of the provision with regard to framing of charges.

The High Court on this observed that the complaint was filed by the respondent against the Company as well as its director. It is also not disputed that accused no.2 Petitioner was Director of the Company, was authorized signatory of the Company; authorized by resolution passed by the Company and had signed the cheque on behalf of the Company as Director of the Company.

It brought to notice that Section 305 of the Cr.P.C provides that if a Company is represented by a person, it is only required to read or explain anything to its Director and it shall be construed to read and explain to the Company also.

In the case followed after the complaint, the High Court was of the view that the respondent has not disputed that petitioner no.2 is Director of the company. He is duly authorized by a resolution passed by the Company. Cheque was signed by him on behalf of the Company as Director of the Company.

Thus the High Court in view of Section 305 of Cr.P.C. set aside the impunged Appellate Court' s order It further remanded back the case to the Appellate Court to decide it afresh after giving opportunity of hearing to the parties in accordance with law.

The order has been given by Judge Virender Singh on 30-07-2019.

Read the Order Here:

 

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