Dishonour of Cheque - Vicarious liability of the Company ...

Court Rules Company Secretary Not Liable for Cheque Dishonor Due to Limited Management Role, Quashes Complaints.

May 3, 2024

Case Laws Indian Laws HC

Dishonour of Cheque - Vicarious liability of the Company Secretary - The CS was never a Director of the Accused Company - In-charge of the day-to-day affairs of the company or not - The petitioner, identified as a Company Secretary, refutes her vicarious liability, asserting her limited role in the company's affairs. The court scrutinizes the petitioner's position and the allegations against her, concluding that the complaints inadequately substantiate her involvement in the offense. As a Company Secretary, her duties primarily pertain to legal compliance rather than active management, thereby absolving her of vicarious liability under Section 141. Consequently, the court quashes the complaints against the petitioner and sets aside the summoning orders.

View Source

← Previous Next →

Dishonour of Cheque - Vicarious liability of the Company ...

Court Rules Company Secretary Not Liable for Cheque Dishonor Due to Limited Management Role, Quashes Complaints.

May 3, 2024

Case Laws Indian Laws HC

You may also like:

Dishonour of Cheque - vicarious liability of director - The petitioners argued that they had resigned from their directorship well before the cheque was issued and could...

Dishonour of cheque - vicarious liability in criminal law - The SC interpreted Section 7 of the NI Act to identify the "drawer" as the individual issuing the cheque,...

Dishonor of cheque due to account freeze falls within the purview of Section 138 of the Negotiable Instruments Act. The test is whether the account had insufficient...

Dishonor of Cheque - cheques in question have not even been issued by the petitioner company - misuse of letter heads of the petitioner company - The petitioner company...

HC ruled that a Managing Director cannot be held vicariously liable under Section 138 of Negotiable Instruments Act for a dishonored cheque that was not drawn by their...

Dishonour of 5 Cheque - admissibility of joint trial - The High Court held that, when all the cheques were issued by the husband and wife for the same cause of action...

Dishonor of Cheque - dues was against the company but the cheque was issued by the petitioner from his personal account - Legally enforceable debt or not, in personal...

Power to Company secretary to initiate suit or any other legal proceedings in the absence of specific authorization - locus standi of the Company Secretary in the main...

Recovery of tax dues of the Company from Directors - Applicability of section 179 to public limited company - In the light of the language in which Section 179 of IT Act...

The court held that once a Magistrate takes cognizance and issues process against the accused, there is no provision in the Code of Criminal Procedure to allow the...

Constitutional Validity - West Bengal Excise (Change in Management) Rules, 2009 - Changes in the Board of Directors - The inevitable conclusion must be that clause (d)...

Dishonour of Cheque - vicarious liability of director - cheque was issued prior to the date of director joining the company - The petitioners have failed to bring on...

In a case concerning dishonor of cheques u/s 138 of the Negotiable Instruments Act, the Court upheld the conviction and sentence. The accused admitted issuing cheques...

SC held that non-executive directors cannot be held vicariously liable under Sections 138 and 141 of NI Act for dishonored cheques without specific evidence of their...

Dishonour of Cheque - territorial jurisdiction - Foreign instrument - Cheque not made payable in India; and, was not drawn on a bank in India - The court noted that the...

Quick Updates: