Case BriefsHigh Courts

Delhi High Court: The Bench of R.K. Gauba, J. interfered with the impugned order passed by Metropolitan Magistrate and quashed the summon issued against petitioner.

Petitioner was a Non-Executive Nominee Director of Vasan Health Care (P) Ltd. A complaint was filed against certain persons including petitioner under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of cheque which was issued on the account of Vasan Health Care. In regard to the same, summoning orders were issued against the petitioner.

Sushil Bajaj and Shalin Arthwan, Advocates for the petitioner contended that proceedings against him were an abuse of the process of law as his position in the company was only that of aNon-Executive Nominee Director and he had no role to play in day-to-day affairs of the company.

The High Court served notice of the petition on the respondent but they did not file any reply and nor did they appear before the Court. As such, the Court accepted as indisputable the documents filed by the petitioner confirming his position in the company as claimed by him. Relying on Pooja Ravinder Devidasini v. State of Maharashtra, (2014) 16 SCC 1, the Court held that since at the relevant time, the petitioner could not be said to be at helm of the affairs of the company, therefore no vicarious liability could be fastened on him. As such, the summoning order issued against the petitioner was quashed. [Bhardwaj Thirvenkata Venkatavaraghavan v. PVR Ltd., 2019 SCC OnLine Del 6774, dated 29-01-2019]

Case BriefsForeign Courts

Supreme Court of Sri Lanka: The Supreme Court affirmed the High Court’s award of Rs. 3,500,000/- as damages to the plaintiff in a case of accident caused due to the negligence of gatekeepers appointed by the Sri Lankan Government.

The plaintiff is the wife of the deceased who was killed in an accident while he was driving his car through a level crossing. An unscheduled train passed through the crossing at the time which hit the plaintiff’s car, fatally injuring him. The fact being argued upon was whether leaving the gates of the level crossing by the gatekeepers amounted to negligence.

The Court affirmed with the judgment of the High Court and the District Court that it was the all important duty of the gatekeepers to shut the gates of the crossing before the arrival of the train. Failure to do so amounted to negligence on the part of the gatekeepers. Any person, who sees that the gates are open, can rightfully assume that there are no trains arriving at that time and hence he can safely cross. This is exactly what happened with the deceased and hence there was no contributory negligence on his part. Since the defendants were employed as gatekeepers by Sri Lankan Railways and the negligence was within the scope of employment, therefore Sri Lankan Railways shall also be made vicariously liable. The liability of the Sri Lankan Railways also arises out of the fact that they never informed the gatekeeper defendants about the arrival of an unscheduled train. The appeal was dismissed on these grounds. [Bhadra De Silva Rajakaruna v. General Manager of Railways, SC Appeal No. 62/2013, decided on 01.08.2017]