In, Sardar Bhupinder Singh vs M/S Green Feeds, a Single Bench of P& H HC has held that, Section 141 of 'the Act' describes, a 'Company' to not only include any corporate body, but also makes a firm, or, other association of individuals, to become included within the realm of statutory coinage 'Company', and hence all those had to be impleaded in the petition.
Facts
A cheque enclosing therein a sum of Rs. 5,50,000/-, and, as becomes embodied in and issued by the accused petitioner herein, to the respondent-complainant, towards purported discharge of a contractual, or, other legal liabilities, as entered into amongst the concerned. Since upon presentation it became declined to be honoured, as such, after the opposite statutory notice being served upon the petitioner, a complaint of the instant petition became instituted by the aggrieved complainant before the court . And, the learned Court rather proceeded to issue a summoning order upon the accused-petitioner herein.
Hence, The summoning order is appended to the instant petition.
Contention Made
Petitioner: That for well maintaining the prosecution under Section 141 of 'the Act', the arraigning of the sole proprietary entity concerned, was a dire statutory necessity, as the sole proprietary entity concerned, is the principal offender.
Whereas, the other natural, or, non juristic persons, can become arrayed as an accused alongwith it, merely on the touchstone of vicarious liability becoming attracted upon them, and, as arises from the dishonour of the negotiable instrument concerned
Respondent: That a keen perusal of the provisions of Section 141 of 'the Act' does not disclose, that they are applicable to a sole proprietary entity concerned.
Court Observation
The Single Bench of Punjab & Haryana HC while rejecting the contention of both the parties observed that, Clause (a) of the explanation as occurs in Section 141 of 'the Act' describes, a 'Company' to not only include any corporate body, but also makes a firm, or, other association of individuals, to become included within the realm of statutory coinage 'Company', and, besides when clause (b) thereof, when defines a 'Director', it makes statutory phrase, to in relation to a firm, to also include a partner in a firm.
Therefore, not only a corporate entity either private, or, public limited becomes a 'Company', for the purpose of application thereons of Section 141 of 'the Act', but also a firm, or, other association of individuals, do also, become covered by Section 141 of 'the Act'.
Court Judgment
The Punjab & Haryana HC while allowing the present petition has held that not only the juristic entity concerned, was amenable for being arrayed as an accused in the petition complaint, but also all those persons responsible to the sole proprietary concern, for the conduct of its business were also required to be arrayed as accused in the memo of parties of the petition complaint.
Hence, both the summoning orders are quashed.
Case: Sardar Bhupinder Singh vs M/S Green Feeds
Citation: CRM-M-54111-2021
Bench: Justice Sureshwar Thakur
Decided: 26th August 2022.
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