Karnataka High Court
M/S Eastern Roadways Pvt Ltd vs M/S Victory Glass & Industries Ltd on 29 October, 2013
Author: Anand Byrareddy
Bench: Anand Byrareddy
1
IN THE HIGH COURT OF KARNATAKA AT BANGALORE
DATED THIS THE 29th DAY OF OCTOBER 2013
BEFORE:
THE HON'BLE MR. JUSTICE ANAND BYRAREDDY
COMPANY APPLICATION No. 1243 OF 2013
CONNECTED WITH
COMPANY APPLICATION No. 1244 OF 2013
COMPANY APPLICATION No.1245 OF 2013
COMPANY APPLICATION No.1246 OF 2013
COMPANY APPLICATION No.1247 OF 2013
COMPANY APPLICATION No.1248 OF 2013
COMPANY APPLICATION No.1249 OF 2013
COMPANY APPLICATION No.1250 OF 2013
IN
COMPANY PETITION No.272 OF 2002
IN C.A.NO.1243 OF 2013
BETWEEN:
M/s. Eastern Roadways Private Limited,
No.7, 3rd Cross, Susheelamma Road,
Dodda Mavalli,
Bangalore,
Represented by its
Managing Director,
Sri. Sanjay Bajla.
... APPLICANT
(By Shri. R.L.Patil, Advocate)
2
AND:
M/s. Victory Glass and Industries Limited
Official Liquidator (in liquidation)
Attached to Hon'ble Court,
Corporate Bhavan,
No.26, 27, 12th Floor,
Raheja Towers,
M.G.Road,
Bangalore. ...RESPONDENT
*****
This Company Application is filed under Section 446 of the
Companies Act, 1956, praying that leave may be granted to the
applicant to prosecute the respondent company in
C.C.No.5168/2004.
IN C.A.NO.1244 OF 2013
BETWEEN:
M/s. Eastern Roadways Private Limited,
No.7, 3rd Cross, Susheelamma Road,
Dodda Mavalli,
Bangalore,
Represented by its
Managing Director,
Sri. Sanjay Bajla.
... APPLICANT
(By Shri. R.L.Patil, Advocate)
3
AND:
M/s. Victory Glass and Industries Limited
Official Liquidator (in liquidation)
Attached to Hon'ble Court,
Corporate Bhavan,
No.26, 27, 12th Floor,
Raheja Towers,
M.G.Road,
Bangalore. ...RESPONDENT
*****
This Company Application is filed under Section 446 of the
Companies Act, 1956, praying that leave may be granted to the
applicant to prosecute the respondent company in
C.C.No.5169/2004.
IN C.A.NO.1245 OF 2013
BETWEEN:
M/s. Eastern Roadways Private Limited,
No.7, 3rd Cross, Susheelamma Road,
Dodda Mavalli,
Bangalore,
Represented by its
Managing Director,
Sri. Sanjay Bajla.
... APPLICANT
(By Shri. R.L.Patil, Advocate)
AND:
M/s. Victory Glass and Industries Limited
4
Official Liquidator (in liquidation)
Attached to Hon'ble Court,
Corporate Bhavan,
No.26, 27, 12th Floor,
Raheja Towers,
M.G.Road,
Bangalore. ...RESPONDENT
*****
This Company Application is filed under Section 446 of the
Companies Act, 1956, praying that leave may be granted to the
applicant to prosecute the respondent company in
C.C.No.5170/2004.
IN C.A.NO.1246 OF 2013
BETWEEN:
M/s. Eastern Roadways Private Limited,
No.7, 3rd Cross, Susheelamma Road,
Dodda Mavalli,
Bangalore,
Represented by its
Managing Director,
Sri. Sanjay Bajla.
... APPLICANT
(By Shri. R.L.Patil, Advocate)
AND:
M/s. Victory Glass and Industries Limited
Official Liquidator (in liquidation)
Attached to Hon'ble Court,
Corporate Bhavan,
5
No.26, 27, 12th Floor,
Raheja Towers,
M.G.Road,
Bangalore. ...RESPONDENT
*****
This Company Application is filed under Section 446 of the
Companies Act, 1956, praying that leave may be granted to the
applicant to prosecute the respondent company in
C.C.No.5171/2004.
IN C.A.NO.1247 OF 2013
BETWEEN:
M/s. Eastern Roadways Private Limited,
No.7, 3rd Cross, Susheelamma Road,
Dodda Mavalli,
Bangalore,
Represented by its
Managing Director,
Sri. Sanjay Bajla.
... APPLICANT
(By Shri. R.L.Patil, Advocate)
AND:
M/s. Victory Glass and Industries Limited
Official Liquidator (in liquidation)
Attached to Hon'ble Court,
Corporate Bhavan,
No.26, 27, 12th Floor,
Raheja Towers,
6
M.G.Road,
Bangalore. ...RESPONDENT
*****
This Company Application is filed under Section 446 of the
Companies Act, 1956, praying that leave may be granted to the
applicant to prosecute the respondent company in
C.C.No.5172/2004.
IN C.A.NO.1248 OF 2013
BETWEEN:
M/s. Eastern Roadways Private Limited,
No.7, 3rd Cross, Susheelamma Road,
Dodda Mavalli,
Bangalore,
Represented by its
Managing Director,
Sri. Sanjay Bajla.
... APPLICANT
(By Shri. R.L.Patil, Advocate)
AND:
M/s. Victory Glass and Industries Limited
Official Liquidator (in liquidation)
Attached to Hon'ble Court,
Corporate Bhavan,
No.26, 27, 12th Floor,
Raheja Towers,
M.G.Road,
Bangalore. ...RESPONDENT
7
*****
This Company Application is filed under Section 446 of the
Companies Act, 1956, praying that leave may be granted to the
applicant to prosecute the respondent company in
C.C.No.5173/2004.
IN C.A.NO.1249 OF 2013
BETWEEN:
M/s. Eastern Roadways Private Limited,
No.7, 3rd Cross, Susheelamma Road,
Dodda Mavalli,
Bangalore,
Represented by its
Managing Director,
Sri. Sanjay Bajla.
... APPLICANT
(By Shri. R.L.Patil, Advocate)
AND:
M/s. Victory Glass and Industries Limited
Official Liquidator (in liquidation)
Attached to Hon'ble Court,
Corporate Bhavan,
No.26, 27, 12th Floor,
Raheja Towers,
M.G.Road,
Bangalore. ...RESPONDENT
*****
8
This Company Application is filed under Section 446 of the
Companies Act, 1956, praying that leave may be granted to the
applicant to prosecute the respondent company in
C.C.No.5174/2004.
IN C.A.NO.1250 OF 2013
BETWEEN:
M/s. Eastern Roadways Private Limited,
No.7, 3rd Cross, Susheelamma Road,
Dodda Mavalli,
Bangalore,
Represented by its
Managing Director,
Sri. Sanjay Bajla.
... APPLICANT
(By Shri. R.L.Patil, Advocate)
AND:
M/s. Victory Glass and Industries Limited
Official Liquidator (in liquidation)
Attached to Hon'ble Court,
Corporate Bhavan,
No.26, 27, 12th Floor,
Raheja Towers,
M.G.Road,
Bangalore. ...RESPONDENT
*****
This Company Application is filed under Section 446 of the
Companies Act, 1956, praying that leave may be granted to the
9
applicant to prosecute the respondent company in
C.C.No.5175/2004.
These Company Applications coming on for Orders this
day, the Court made the following: -
ORDER
The applicant - company was a transporter, which was engaged by the respondent and was transporting goods manufactured by the respondent. In the course of business, when accounts were reconciled from time to time periodically, there was a sum due from the respondent - company to the applicant - company in respect of the services rendered. Therefore, when demands were made for payment, cheques were issued on behalf of the respondent - company in discharge of the same and since the cheques when presented were dishonoured, proceedings were initiated by the applicant - company for offences punishable under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the NI Act', for brevity). Process having been issued to the Directors of the company who were arraigned as the 10 accused. Though the respondent - company was in winding up proceedings, and had also suffered an order of winding up, the company and its Directors had issued cheques knowing fully well that the company was not solvent and that the cheques would not be honoured. At the time when the criminal case was instituted the law as settled by the Supreme Court did not require the company to be made a party to the criminal prosecution. It is only after cognizance was taken by the criminal court that a larger bench of the apex court has rendered the decision in Anil Hada vs. Indian Acrylic Limited (AIR 2000 SC 145), wherein the Supreme Court has expressed that in circumstances as aforesaid, when the cheques are issued on behalf of the company, the prosecution cannot be brought against the Directors without the company being made a party and therefore, the present applications are filed seeking leave of this court to bring the complaint against the company along with its Directors. The applicant has already made an application before the criminal 11 court under Section 319 of the Code of Criminal Procedure, 1973 in this regard.
Accordingly, the applications are allowed. Leave is granted. The applicant may initiate proceedings against the company as well.
Sd/-
JUDGE KS