Hon'ble Judges/Coram:
B.R. Gavai and Sanjay Karol

JUDGMENT

Sanjay Karol, J.

1. Leave granted.

2. Whether a Director who has resigned from such position and which fact stands recorded in the books as per the relevant Rules and statutory provisions, can be held liable for certain negotiable instruments, failing realization, is the sole short and common question that this Court must consider in these appeals arising out of the judgment and order dated 6th April, 2022 in CRLOP No. 34923 of 2019; and 8th April, 2022 in CRLOP No. 34248 of 2019.

3. A brief conspectus of facts for adjudication of the present lis is:

(a) The Appellants in both the appeals were Directors in the Respondent- Company and had resigned from such Directorship on 9th December,2013¹ and 12th March, 2014² respectively;

(b) Form 32 in accordance with Sections 303(2), 264(2), 266(1)(a), and 266(1)(b)(iii) of the Companies Act, 1956, in respect thereof stood accepted on 9th December, 2013 and 20th March, 2014 respectively. The relevant records stood rectified, incorporating these changes;

(c) The Appellants, namely, Rajesh Viren Shah and Sanjay Babulal Bhutada in Crl.Appeal Nos.....@ SLP(Crl) No. 6905 and SLP(Crl) No. 7050 of 2022, respectively, were arrayed as Accused in a complaint filed Under Section 138 of the Negotiable Instruments Act, 1881³ in relation to three cheques bearing Nos. 002535 for Rs. 7,10,085/-; 002777 for Rs. 1,85,09,054; and 002791 for Rs. 10,00,000/-, all dated 22nd March, 2014, by the Company Respondent herein against M/s. MIEL e-Security Private Limited and its Directors, with one Mr. Narayanan Kutty Nair, Managing Director, being arrayed as A-2, and A-3 to A-7 being its Directors, including the Appellants who were arrayed as A-4 and A-6 respectively.

(d) With the dishonouring of the cheque on presentation on account of insufficient funds the complainant-Respondent after serving statutory notice dated 11th April, 2014 preferred a complaint Under Sections 200 and 191A Code of Criminal Procedure, 1973⁴ read with Section 144 of the N.I. Act, seeking quashing of such an action initiated by the Respondent herein, the Appellant(s) preferred a petition Under Section 482 of the Code of Criminal Procedure which stands dismissed by the impugned order.

4. The position of law as to the liability that can be fastened upon a Director for non-realisation of a cheque is no longer res integra. Before adverting to the judicial position, we must also take note of the statutory provision - Section 141 of the N.I. Act, which stat........