Ashutosh Parasrampuriya v. Gharrkul Industries

Supreme Court of India(2023) 7 SCC 194

Bench: J. S. Ravindra Bhat, J. Aravind Kumar

The Supreme Court held that for liability under Section 141 NI Act, the person must have been "in charge of and responsible to the company for the conduct of the business of the company" at the time the offence was committed. The offence under Section 138 NI Act is committed at the time of dishonour of the cheque (following presentation, notice, and non-payment within 15 days) — not at the time of issuance of the cheque. A director who resigned before the cheque was issued was not in charge of the company at any stage of the offence constituting elements under S.138. The complaint against the former director was quashed. The Court reiterated that bald averments reproducing statutory language are not sufficient — the complaint must contain specific factual allegations about the person's active role in the conduct of business at the relevant time.