Dishonour of Cheque -- Non-Arraignment of Company -- Fatal defect not curable by summoning company under S.319 CrPC
(i) Negotiable Instruments Act, 1881, S.141 -- Dishonour of Cheque -- Non-Arraignment of Company -- Fatal defect not curable by summoning company under Section 319 of Code of Criminal Procedure, 1973, during trial. Prosecution of company is a mandatory precondition for fastening vicarious liability on directors or authorised signatories. Where complaint suffers from such fundamental defect, cognizance itself cannot be taken and only a fresh complaint can cure it. (ii) Negotiable Instruments Act, 1881, S.142 -- Dishonour of Cheque -- Delay in Arraigning Company -- Power to condone delay under proviso to Section 142 cannot be invoked to circumvent limitation and cure a fatal defect in the complaint. Such power applies only to condone delay in filing a valid complaint and not to remove defects rendering the original complaint void at the threshold. (iii) Negotiable Instruments Act, 1881, S.138 -- Dishonour of Cheque -- Ingredients of Offence -- Essential elements to be proved by complainant include drawing of cheque for discharge of debt, presentation within validity period, dishonour by bank, issuance of demand notice within thirty days of return memo, and failure of drawer to pay within fifteen days of notice. Each ingredient must be independently established for conviction.
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