By way of background, the private company and its directors (including the Managing Director) were accused by the complainant of inducing him into investing ₹10 lakh. However, the company later failed to return the money and issued a cheque in February 2000, which allegedly bounced due to insufficient funds.
Despite sending a notice, the accused persons (private company, Managing Director, and three other directors) allegedly did not respond, prompting the complainant to file a complaint under Section 138 of the NI Act.
Source: Barandbench
