Dishonour Of Cheque: Specific Averments To Be Mentioned, Not Enough To Allege That the Accused Was CEO Or Director Of Company: Delhi High Court

The Delhi High Court has passed an order quashing criminal proceeding against the former CEO of a company in a cheque dishonour case, holding that as no specific allegations or averments against the former CEO, regarding her alleged role either in the transaction or in the conduct of business of the company were made out, the complaint against her was liable to be quashed in a cheque dishonour case. The single judge bench of Justice Jyoti Singh said that it was settled law that the mere designation of an officer in a company was not enough to make the officer vicariously liable in a case under Section 138 of Negotiable Instrument Act (NI Act) “The absence of an averment as to the transaction / specific role of the Petitioner, in my opinion, is fatal to the case of the complainant,” she stated.