1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 26.10.2018 CORAM: THE HONOURABLE MR.JUSTICE [ENTITY] Crl.O.P.[MD].Nos.7100 to 7103 of 2017 and Crl.M.P.(MD) Nos.4837 to 4844 of 2017 [ENTITY] [ENTITY] : Petitioners in all Crl.O.Ps., Vs. [ENTITY], Rajapalayam, through its Managing Director, K.B.Thulasirama Raja S/o.K.T.Balakrishnama Raja, D.No.244, Cotton Market, Rajapalayam, Virudhunagar District. : Respondent in Crl.O.P.(MD) Nos.7100, 7102 and 7103 of 2017 [ENTITY] : Respondent in Crl.O.P.(MD) No.7101 of 2017 COMMON PRAYER : Criminal Original Petitions are filed under [SECTION] of [ACT] to call for the records relating to in [CASE NUMBER] on the file of the Judicial Magistrate, Rajapalayam and quash the same. http: www.judis.nic.in 2 For Petitioners in all Crl.O.Ps., : Mr.[ENTITY] For Respondent in all Crl.O.Ps., : Mr.[ENTITY] COMMON ORDER
These Criminal Original Petitions have been filed to quash the proceedings in [CASE NUMBER] on the file of the Judicial Magistrate, Rajapalayam
2.The petitioners herein have been arrayed as A3 and A4 before the Court below. The respondent in [CASE NUMBER] has filed a complaint under [SECTION] of [ACT], against four accused persons out of which A1 is the company and A2 is the Managing Director, who had signed the cheque. The petitioners, who had arrayed as A3 and A4 have been added in the complaint only on the ground that they are the Directors of the company.
3.The important question raised by the petitioners is that there are absolutely no averments in the complaint with regard to the active role played by these petitioners in the day to day affairs of the http: www.judis.nic.in company. Further, the only averment that has been made in the complaint is that these petitioners are also Directors of the company and they are involved in day to day affairs of the company. Apart from this, there is no other averment against these petitioners.
4.This Court has gone through the complaint filed by the respondent. In the complaint, except for a general averment made against these petitioners that they are the Directors of the company and are involved in day to day affairs of the company, there are no other particulars to show that these petitioners are actively involved in the running of the company.
5.This case is squarely covered by the judgment of the Hon'ble Supreme Court in the case of [PRECEDENT] and in the case of [PRECEDENT].
6.In the above judgments, the Hon'ble Supreme Court has categorically held that in the case of Director, the complaint should http: www.judis.nic.in specifically state as to how and in what manner, the Director was in- charge or responsible for the conduct of the business of the company and mere bald statement that he was in-charge of and responsible for the day to day affairs of the company is not sufficient.
7.The only explanation that has been made by the Hon'ble Supreme Court in the above judgment is, in the case of a Managing Director, Joint Managing Director and Signatory Director where no such averment is required to be made.
8.In view of the above, this Court finds that the continuation of the proceedings against these petitioners will amount to an abuse of process of Court. In the interest of justice, the proceedings before the Court below insofar as these petitioners are concerned is liable to be quashed.
9.In the result, the proceedings in [CASE NUMBER] on the file of the Judicial Magistrate, Rajapalayam, insofar as these petitioners are concerned are hereby quashed. Accordingly, these criminal original petitions are allowed. The Court below is directed to complete the proceedings within a period of four months from the date of receipt of a copy of this order and report before this http: www.judis.nic.in Court after completion of the proceedings. Consequently, the connected miscellaneous petitions are closed.
26.10.2018 Index : Yes/No Internet : Yes/No mm To 1.The Judicial Magistrate, Rajapalayam, Virudhunagar District. 2.The [ENTITY]. http: www.judis.nic.in [ENTITY], J. mm
Crl.O.P.[MD].Nos.7100 to 7103 of 2017 26.10.2018 http: www.judis.nic.in