Promila v. Mr.A.P.Mundargi,Sr.Counsel

Mr.Mundargi Mr.Mundargi Mr.Mundargi learned learned learned Senior Senior Senior counsel counsel counsel petitioners. petitioners. petitioners. The The The complainant complainant complainant Ms.Promila Ms.Promila Ms.Promila Kapoor Kapoor Kapoor appears as party in person. Perused her written as party in person. Perused her written appears appears as party in person. Perused her written submissions placed before me. placed before me. submissions submissions placed before me.

2.2.2. The The The complainant complainant complainant Criminal Criminal Criminal No.484/S No.484/S No.484/S 1998 1998 1998 offence offence offence section section section ofofof Negotiable Negotiable Negotiable Instruments Instruments Instruments Act Act Act against against against Case Case Case 138 138 138 company company company namely namely namely M/s M/s M/s Indo Indo Indo French French French Biotech Biotech Biotech Enterprises Enterprises Enterprises LtdLtdLtd having having having registered registered registered office office office 5, 5, 5, Bhaskar Bhaskar Bhaskar Mansion, Mansion, Mansion, 31, 31, 31, Sitladevi Sitladevi Sitladevi Temple Temple Temple Road, Road, Road, Mahim, Mahim, Mahim, Mumbai-16. Mumbai-16. Mumbai-16. All All All directors directors directors company company company havehavehave saidsaidsaid impleaded impleaded impleaded accused accused accused nos. nos. nos.

1 1 1 8 8 8 complaint. complaint. complaint. The The The present present present petitioners petitioners petitioners accused accused accused nos. nos. nos. 5 5 5 6 6 6 contend contend contend 2 areareare nominee nominee nominee directors directors directors representing representing representing public public public sector sector sector undertaking undertaking undertaking MMTC MMTC MMTC (The Mineral (The Mineral (The Mineral Metal Metal Metal Trading Trading Trading Corporation Corporation Corporation India India India Limited. Limited. Limited. Undoubtedly, Undoubtedly, Undoubtedly, MMTCMMTCMMTC Rs.4.75 Rs.4.75 Rs.4.75 Ltd Ltd Ltd equity equity equity participation participation participation extent extent extent crores crores crores therefore therefore therefore nominated nominated nominated present present present petitioners petitioners petitioners directors directors directors M/sM/sM/s Indo Indo Indo French French French Biotech Biotech Biotech Enterprises Enterprises Enterprises Ltd.

Ltd. Ltd. petitioners petitioners petitioners further further further nominee nominee nominee directors directors directors involved involved involved The The The daydayday management management management M/s M/s M/s Indo Indo Indo French French French Biotech Biotech Biotech Enterprises Enterprises Enterprises Ltd Ltd Ltd cannot cannot cannot vicariously vicariously vicariously liable liable liable offence offence offence namely namely namely dishonour dishonour dishonour ofofof thethethe thethethe cheque cheque cheque issued issued issued company company company favour favour favour complainant. complainant. complainant. On On On count, count, count, prayed prayed prayed issuance issuance issuance process process process passed passed passed learned learned learned Magistrate Magistrate Magistrate illegal illegal illegal proceedings proceedings proceedings areareare required to be quashed to the extent they are required to be quashed to the extent they are required to be quashed to the extent they are concerned. concerned. concerned.

3.3.3. In In In normal normal normal course, course, course, Court Court Court directed directed directed petitioners petitioners petitioners approach approach approach Sessions Sessions Sessions Court CourtCourt consistent consistent consistent Court Court Court tototo challenge challenge challenge process process process Criminal Criminal Criminal Application Application Application section section section 397 397 397 filing filing filing Cr.P.C. Cr.P.C. Cr.P.C. However, However, However, Writ Writ Writ Petition Petition Petition pending pending pending thethethe 3 3 3 years. years. years. There There There inordinate inordinate inordinate caused caused caused complaint complaint complaint complainant complainant complainant to ensure that the Criminal Application is anxious to ensure that the Criminal Application is anxious to ensure that the Criminal Application is anxious at the earliest possible. decided at the earliest possible. decided at the earliest possible. decided 3 Second proviso to section 141 of the Negotiable 4.4.4. Second proviso to section 141 of the Negotiable Second proviso to section 141 of the Negotiable Act, 1881 reads as under : Instruments Act, 1881 reads as under : Instruments Act, 1881 reads as under : Instruments """ nominated nominated nominated virtue virtue virtue employment employment employment StateStateState Government Government Government casecasecase prosecution prosecution prosecution Provided Provided Provided a a a further further further that where that where that where Director Director Director holding holding holding a a a a a a person person person company company company office office office Government Government Government Central Central Central a a a controlled controlled controlled State State State be, be, be, Government, Government, Government, Chapter. Chapter. Chapter. Government Government Government financial financial financial liable liable liable corporation corporation corporation Central Central Central " " "

5.5.5. In In In addition, addition, addition, complaint complaint complaint specifically specifically specifically petitioners petitioners petitioners played played played present present present management management management Indo-French Indo-French Indo-French Biotech Biotech Biotech Enterprises Enterprises Enterprises Ltd Ltd Ltd though though though states states states President/Chairman President/Chairman President/Chairman accused accused accused no.1 no.1 no.1 V.Gopal V.Gopal V.Gopal company. company. company. It It It appears appears appears accused accused accused nos. nos. nos. 2,3 2,3 2,3 4 4 4 5 5 5 directors/employees directors/employees directors/employees accused accused accused no.7 no.7 no.7 company company company hashashas Supreme Supreme Supreme Court Court Court AIR AIR AIR 2007 2007 2007 SUPREME SUPREME SUPREME COURT COURT COURT 1650 1650 1650 (Everest (Everest (Everest Advertising Advertising Advertising Pvt. Ltd Pvt. Ltd Pvt. Ltd vs. vs. vs. StateStateState Govt. Govt. Govt. NCT NCT NCT Delhi Delhi Delhi & & & ors), ors), ors), vicarious vicarious vicarious liability liability liability account account account dishonour dishonour dishonour cheque cheque cheque fastened fastened fastened accused accused accused petitioners petitioners petitioners asasas petitioners petitioners petitioners nominee nominee nominee directors directors directors be said to be engaged in the day to day cannot be said to be engaged in the day to day cannot be said to be engaged in the day to day cannot of accused no. 7 company. activities of accused no. 7 company. activities of accused no. 7 company. activities

6.6.6. The The The petition petition petition therefore therefore therefore succeeds. succeeds. succeeds. The The The hereby hereby hereby allowed allowed allowed prayer prayer prayer clause clause clause (b). (b). (b). Criminal Criminal Criminal Case Case Case No.484/S/1998 No.484/S/1998 No.484/S/1998 continue continue continue against against against allallall i.e. i.e. i.e. accused accused accused except except except present present present petitioners petitioners petitioners accused accused accused nos.5 nos.5 nos.5 6 6 6 hereby hereby hereby directed directed directed 4 ononon complaint complaint complaint decided decided decided merits merits merits expeditiously expeditiously expeditiously six months from the date of receipt of writ withinwithinwithin six months from the date of receipt of writ six months from the date of receipt of writ this Court. fromfromfrom this Court. this Court. to go forthwith to the trial Court. WritWritWrit to go forthwith to the trial Court. to go forthwith to the trial Court. (B.H.Marlapalle, J) J) J) (B.H.Marlapalle, (B.H.Marlapalle,