138 case Company acquitted – director convicted

Querist : Anonymous (Querist) 10 April 2011 This query is : Resolved
Personal liability of the 2nd accused – no promissory note signed - Company cheque issued by the accused – accused director of the company - signed the cheque as the authorised signatory of the company – cheque bounced – during the trial the company wound up – 2nd accused represented the 1st accused company - trial court acquitted the company – convicts the accused alone – with fine and one year sentence – fine deposited.

My doubts are:-

1. If the company is acquitted how the director of the company can be convicted? (Please provide Citations)

2. If the 2nd accused prefers appeal, whether the company is a necessary party?

3. Which court is having the power to suspend the sentence?

4. Whether the suspension of sentence can be sought as a MP in the appeal?

5. Appeal lies to sessions court or High Court?

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Arvind Singh Chauhan (Expert) 10 April 2011
Company should not be made a party in this case. That's why it was acquitted. Person responsible can be convicted only.

Raj Kumar Makkad (Expert) 10 April 2011
1. Company is an artificial person which works through its directors and in the given case as the second accused on behalf of first accused committed the alleged crime so he is responsible in his personal capacity.

2. No. As the accused has to be filed against the complainant so company is not a necessary party. otherwise also first accused is the authorized representative/director of the company so there is no need to implead fist accused in appeal.

3. Sessions Court.

4. Yes.

5. Already replied.

DEFENSE ADVOCATE.-firmaction@g (Expert) 10 April 2011
It is essential to make the co as a party. If the co is not convicted than any conviction of its directors is not legal.
The co is master and director is servant.Without the master the servant has no existance in the eyes of law and even in common perlance.

File revision in sessions court. The sentence can be suspended by trial court as well as sessions court.