The Punjab and Haryana High Court has recently stayed proceedings pending before the Judicial Magistrate, Ambala, against a foreign lawyer who previously served as a non-executive, investor nominee director of Shakti Bhog Foods Ltd.
The individual had been declared a proclaimed person under Section 82 of the Criminal Procedure Code (CrPC) in cheque dishonour proceedings initiated under Section 138 of the Negotiable Instruments Act, 1881.
The case stems from business transactions between M/s Shakti Bhog Foods Ltd. and M/s Gurvinder Traders involving unpaid dues from the financial years 2016–2017. Cheques issued by the accused firm were dishonoured due to insufficient funds, leading to the filing of criminal complaints by Gurvinder Traders.
In the present case, one of the petitioners, a U.S.-based lawyer and former non-executive director of the accused firm, challenged the non-bailable warrants and proclamation orders, contending that:
- He was an investor nominee non-executive director and was not involved in the day-to-day operations of the company;
- He had resigned from the company well before the cheques in question were dishonoured;
- He was neither an authorised signatory nor a representative of the company;
- The summons, bailable warrants, and proclamation notices were never personally served on him but were instead served at the company’s address, despite his updated contact details being available on the Ministry of Corporate Affairs (MCA) portal.
In view of these submissions, the High Court has stayed the trial court proceedings insofar as they relate to the petitioner.
Appearances:
Mr. Rohit Khanna, Mr. Kamal Shankar, Dr. Abhimanyu Chopra, Mr. Rohit Chandel, and Mr. Shaurya Vardhan Singh, Advocates for the petitioner.
Mr. P.K. Aggarwal, DAG Haryana for Respondent No. 2.