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Indian Laws - Highlights / Catch Notes

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Dishonour of cheque due to insufficient funds - no vicarious ...


Insufficient funds cheque dishonor: No vicarious liability if not partner/signatory. Unsubstantiated averment trial is abuse of process.

Case Laws     Indian Laws

July 25, 2024

Dishonour of cheque due to insufficient funds - no vicarious liability u/s 141 NI Act. Petitioner not shown as partner in firm through certificate from Deputy Registrar of Firms. Cheque issued by firm, signed by Sh. Hoshiyar Singh, not petitioner. No evidence petitioner was partner or signatory. Forcing petitioner to stand trial solely on unsubstantiated averment would be abuse of process. Petition allowed considering factual matrix and unimpeachable material presented by petitioner.

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