Allowing an appeal in Anil Gupta v Star India Pvt Ltd & Anr the Supreme Court held that the prosecution of a director of a company in a cheque bouncing case could not be sustained as the company was not made a party to the prosecution. Arraigning of a company as an accused is imperative for maintaining a prosecution under section 141 of the Negotiable Instruments Act, 1881, which provides for proceeding against and punishing companies for the offence of cheque bouncing under section 138 of the act.
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The dispute digest is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
