A. Negotiable Instruments Act, 1881—Sections 138 & 141—Dishonour of Cheque—Vicarious Liability of Director—Specific Averments— Mere designation as Director or Whole Time Director does not create deemed vicarious liability under Section 141—complaint must specifically aver that the accused was in charge of and responsible for the conduct of the company’s business at the time of commission of the offence. (Paras 8–11) B. Negotiable Instruments Act, 1881—Sections 138 & 141—Resignation of Director Before Issuance of Cheques—Quashing of Proceedings— Where the accused had ceased to be a Director nearly two months before issuance and dishonour of the cheques, and statutory records conclusively established such cessation, he could not be held vicariously liable und...

A. Code of Criminal Procedure, 1973—Section 311—Section 138, Negotiable Instruments Act, 1881—Recall of Witness—Additional Evidence— Power under Section 311 is wide and may be exercised at any stage where the proposed evidence is germane and essential for a just decision—mere delay or closure of evidence does not create an absolute bar, provided the opposite party is afforded an effective opportunity of cross-examination and rebuttal. (Paras 30–38, 58–62) B. Code of Criminal Procedure, 1973—Sections 294(3) & 482—Promissory Note—Disputed Document—Proof of Genuineness— Dispute regarding genuineness of a document does not make it inadmissible or incapable of being produced—Section 294(3) merely dispenses with formal proof where genuineness is admitted&...

A. Negotiable Instruments Act, 1881—Sections 138, 141—Vicarious liability of Director—Mere designation as Director does not automatically fasten criminal liability—However, where complaint, read as a whole, contains foundational averments that the accused Director was in charge of and responsible for conduct of Company’s business, proceedings cannot be quashed merely because she was not signatory to dishonoured cheques—Actual involvement and responsibility are matters of evidence for Trial Court. (Paras 22–28) B. Code of Criminal Procedure, 1973—Section 482—Quashing of summoning order—At stage of issuance of process, Magistrate is required only to determine whether complaint and supporting material disclose a prima facie case—Defence regarding non-involvement in Company&...

A. Protection of Women from Domestic Violence Act, 2005—Sections 17 & 19—Right of Residence—Shared Household—Alternate Accommodation—A daughter-in-law cannot claim an indefeasible right of residence in a property exclusively owned by her father-in-law where the property is neither ancestral nor joint family property, the owner's permission to the son and his family to reside therein has been revoked, and the daughter-in-law has alternate accommodation in her own name generating rental income. In such circumstances, the statutory right of residence under Section 17 cannot be invoked to defeat the owner's right to seek possession. [Paras 47, 52–53] B. Protection of Women from Domestic Violence Act, 2005—Sections 17(2) & 19—Civil Procedure Code, 1908—Section 100—E...

A. Trusts and Trustees — Rendition of Accounts — Maintainability — Co-trustee against Co-trustee — A suit by one trustee against a co-trustee for rendition of accounts is maintainable, as every trustee has the right to know the financial position of the trust and to demand accounts from a co-trustee entrusted with collection and expenditure of trust income — such accountability is necessary for proper supervision of trust affairs and to protect trustees from liability arising from misappropriation — (Para 6). B. Civil Procedure Code, 1908 — Section 92 — Rendition of Accounts — Legal Representatives — Survivability — A suit by co-trustees for rendition of accounts to enforce their individual right of supervision does not fall within Section 92 CPC, which concerns represen...

A. Negotiable Instruments Act, 1881—Sections 138, 118 & 139—Dishonour of cheque—Statutory presumption—Once issuance and signatures on cheque are admitted and other ingredients of Section 138 are established, presumption arises that cheque was issued towards legally enforceable debt or liability—Bare defence of smaller loan, repayment with interest or issuance of blank security cheque, unsupported by documentary or other cogent evidence, is insufficient to rebut such presumption—Conviction upheld. (Paras 13–16) B. Negotiable Instruments Act, 1881—Section 138—Revisional jurisdiction under Section 397 Cr.P.C.—Scope of interference—Where Trial Court and Appellate Court have properly appreciated the cheque, dishonour memo, legal notice and tracking report and their findin...

A. Arbitration and Conciliation Act, 1996—Section 9—Interim measures—Dispute arising out of licence agreement—Where the petitioner challenged a demand notice raising concession fee on the ground that the respondent had unilaterally increased the number of train coaches contrary to the terms of the licence agreement, the Court held that an arbitrable dispute existed between the parties and directed that the disputes be resolved through arbitration. (Paras 3, 5 to 8, 11 and 13) B. Arbitration and Conciliation Act, 1996—Sections 9 and 11—Arbitration agreement—Appointment of Arbitrator—In view of the arbitration clause contained in the licence agreement and the existence of disputes relating to the validity of the demand notice and enhancement of concession fee, the Court appointed a Sole Arb...

A. Negotiable Instruments Act, 1881—Section 138—Dishonour of cheque—Statutory demand notice—Validity—A statutory notice under Section 138 must relate to a legally enforceable debt or liability—Mere demand of an amount less than the aggregate cheque amount on account of admitted part-payments does not, by itself, render the notice invalid, where the notice discloses the basis of computation—Whether the amount demanded represents the legally enforceable debt is a matter to be determined on evidence during trial and not in revisional jurisdiction. (Paras 25, 35, 37 and 40) B. Negotiable Instruments Act, 1881—Section 138—Dishonour of cheque—Demand notice—Validity—The Sessions Court erred in holding the statutory notice invalid solely because the amount demanded was low...

A. Narcotic Drugs and Psychotropic Substances Act, 1985—Section 37—Bail—Commercial quantity—In offences involving commercial quantity of narcotic drugs, bail can be granted only after the Court is satisfied that there are reasonable grounds for believing that the accused is not guilty of the alleged offence and is not likely to commit any offence while on bail, after affording an opportunity of hearing to the Public Prosecutor. B. Criminal Procedure Code, 1973—Section 50—Constitution of India, 1950—Article 22(1)—Grounds of arrest—The arrested person must be informed of the grounds of arrest to enable an effective defence—No particular format is prescribed, and substantial compliance with the statutory and constitutional requirement is sufficient unless prejudice is demonstrate...

A. Specific Relief Act, 1963—Specific performance—Readiness and willingness—In a suit for specific performance, the plaintiff must establish continuous readiness and willingness to perform the essential terms of the contract from the date of its execution till the date of hearing—Financial capacity to perform the contract must be proved by cogent evidence, and mere pleadings or bald assertions are insufficient to satisfy the statutory requirement. (Paras 85 to 87, 92 and 99) B. Limitation Act, 1963—Section 3—Specific performance—Limitation—A suit for specific performance must be instituted within the prescribed period of limitation—Where the cause of action is dependent upon the conclusion of pending litigation, limitation commences upon the expiry of the stipulated period after dis...