High Court Clarifies Directors' Vicarious Liability in Cheque Dishonour Cases During Insolvency Under IBC Section 14.

The High Court addressed issues regarding dishonour of cheques during insolvency proceedings, vicarious liability of directors, and the application of Section 14 of the IBC Act. It held that Section 14 of the IBC Act applies to corporate debtors, not natural persons, and does not exonerate individuals from criminal liability u/s 138 of the N.I. Act. The court found that the applicants had no knowledge of issuing the cheques, as they had not signed them, and lacked specific status or role in the complaint. Thus, the court allowed the application to quash the complaint u/s 482 of the Criminal Procedure Code to prevent abuse of court process and secure justice. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X