Company's Directors and Criminal Liability of Directors of a Company

Company's Directors and Criminal Liability of Directors of a Company

In case of Gunmala Sales Pvt Ltd v. Anu Mehta [2014] GCtR 6455 (SC) dealing with a case of Negotiable Instruments Act, 1881 it was held at page nos. 42 and 43 that "when in view of the basic averment process is issued the complaint must proceed against the Directors. Complaint cannot be quashed for the asking. For quashing of a complaint it must be shown that no offence is made out at all against the Director." 

"But, if any Director wants the process to be quashed by filing a petition under Section 482 of the Code of Criminal Procedure, 1973 on the ground that only a bald averment is made in the complaint and that he is really not concerned with the issuance of the cheque, he must in order to persuade the High Court to quash the process either furnish some sterling uncontrovertible material or acceptable circumstances to substantiate his contention. He must make out a case that making him stand the trial would be abuse of the process of court."