Company Has To Be Proceeded Against By Giving An Opportunity To Be Heard Where It Has Also Been Accused, No Liability Only Qua Private Persons: Delhi HC

[10 May 2022] The Delhi High Court has observed that in a case where the Company has also been accused, the liability cannot be said to have been arisen only qua the private person and that the Company has to be proceeded against legally by giving it an opportunity to be heard. Justice Chandra Dhari Singh added that the liability of a private person, in his capacity of a Director or any other authority to act on behalf of the Company, if has to be severed from the liability of the Company, cannot arise against him when the Company itself is also an accused. “Such liability against the person would arise when the accused person has issued the cheque in his personal capacity which is distinguishable from his capacity as an employee or Director of a company. Where the Company has also been accused, the liability cannot be said to have been arisen only qua the private person and the Company has to be proceeded against legally by giving it an opportunity to be heard,” the Court said.