mesuggest (prop.) 15 July 2015

Wrong case under n.i. act

Dear sirs,

Facts happened :-

Mr. A, Mr. B and Mr. C are directors in ABC Pvt. Ltd. and Mr. A also had another proprietory business namely M/s. PQR

Mr. X is third party and he has been dealing with M/s. POR since last 5 years and hence he knew that PQR is proprietory concern and it is totally different from M/s. ABC Pvt. Ltd.

Note :- Mr. B and C were against Mr. X because he was not proper person and hence Mr. X was always angry with Mr. B and Mr C.

Last year Mr. A has given one Cheque of Rs.2,00,000/- to Mr. X. This cheque was issued from the proprietory concern M/s. PQR and the said cheque was not passed by Mr. A..

But, Mr. X took legal actions against u/s. 138 of N.I. Act against M/s. ABC Pvt; Ltd. Company and its all directors Mr. A Mr. B and Mr. C

The trial Court issued Process against all the three directors and also against Pvt. Ltd. Company, too

But in Revision Application the Session Court set aside the Order of Magistrate and directed to proceed the matter against Mr. A only.

My problem

Such acts of Mr. X has defamed Mr. B and hence private finances presurrised Mr. B to repay loan and hence Mr. B had to sell his own belongings and repay their loans.

No other financer was ready to help such person whose name was listed in defaulter list in N.I. Act. and he was duped of about Rs.5,00,000/- and not only that but he had to shift from Mumbai to Delhi

It was defamation and wrongful losses of Mr. B which was caused by Mr. X with bad-intention to take revenge because Mr. B always used to say his Partner Mr. A to not to deal with Mr. X.

How to punish Mr. X ?

How to recover money-loss from him ?

kindly guide.

Reply Follow

6 Replies

SAINATH DEVALLA (LEGAL CONSULTANT) 15 July 2015

If the financial powers as laid down in their MOU,then all of them are liable to the liabilities of the company.Hence the complaint must have been filed on the company represented by its directors,irrespective of the fact whosoever had signed the cheque.

mesuggest (prop.) 15 July 2015

My dear Sir the cheque was given by Mr. A from his proprietory concern M/s. PQR and there was no existence of any MOU between them

Further The Session Court aquitted the Mr B and Mr C on that ground that Mr. B. and Mr.C were wrongly made party to the case.

In such siyuation

How to punish Mr. X ?

How to recover money-loss from him ?

Kindly guide

SAINATH DEVALLA (LEGAL CONSULTANT) 15 July 2015

Can elaborate the reasons mentioned by the sessions court for deleting B and C and proceeding against A only?

mesuggest (prop.) 15 July 2015

the observation amongst other of session courts was as under :-

persusal of the documents shows that the cheque was signed by Mr. A as a proprietor of the said concern and not as director of the M/s. ABC Pvt. Ltd.. Therefore it appears that Ld. Magistrate has not applied his mind with care and caustion while passing oreder if issuance of process"

Kindly guide.

SAINATH DEVALLA (LEGAL CONSULTANT) 15 July 2015

Was it a printed cheque with the designation proprietor? If it is a pvt ltd company registered under companies act 1956,it will have chairman and directors but not the title proprietor.

mesuggest (prop.) 15 July 2015

Yes Sir it was proprietor's cheque and issued from the proprietory concern and not from the Pvt. Ltd. Compnay's bank account and the facts were known to Mr. X, too and hence the session Court also held like tthat.

Mr. X has deliberately did it to defame Mr. B and Mr. C. and succeded in his bad-intentions.

hence guide

How to punish Mr. X ?

How to recover money-loss from him ?

kindly guide.