HITESH VERMA ……APPELLANT
Versus
M/S HEALTH CARE AT HOME INDIA PVT. LTD. & ORS. …..RESPONDENT(S)
Case Background
The Supreme Court of India addressed multiple criminal appeals (Nos. 462-468 of 2025) arising from Special Leave Petitions (SLPs) related to complaints filed under Section 138 of the Negotiable Instruments Act, 1881. The appellant, Hitesh Verma (Accused No. 3), challenged his prosecution since he was not a signatory to the bounced cheque.
Legal Issue
The core question was whether a non-signatory director could be held liable under Section 138. The complaints alleged that the appellant was a director and authorized signatory of the accused company, but the Court noted he did not sign the disputed cheque.
Court’s Analysis
- Section 138 Liability: The Court emphasized that only the signatory of a cheque can be prosecuted under Section 138 unless vicarious liability under Section 141 is established.
- Section 141 Requirements: For vicarious liability, the complaint must show the accused was in charge of and responsible for the company’s business conduct at the time of the offence. The complaints lacked this assertion.
Judgment Outcome
The Supreme Court quashed proceedings against the appellant, ruling that the complaints failed to meet the legal criteria under Section 141. The Court clarified it did not assess the case’s merits, leaving other issues open for trial.
About the Author: Neeraj Gogia, Advocate, 9891800100, This article is intended for informational purposes only and does not constitute legal advice.
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