Dishonor of cheque case. Petitioners described as managers, ...

Cheque Dishonor Case: Corporate Managers Exonerated from Criminal Liability.

Case Laws     Indian Laws

September 27, 2024

Dishonor of cheque case. Petitioners described as managers, wives of directors. Court examined whether petitioners can be arrayed as accused. Held, company is principal accused, directors are accused. No averment in complaint regarding petitioners' role in transaction or functioning of company. No vicarious liability in criminal law. Section 141 of Negotiable Instruments Act requires person to be in charge and responsible for company's business conduct at time of offense. Merely managing company's affairs insufficient. Petitioners' role not established as responsible for company's business conduct. Complaint against petitioners cannot be sustained in absence of specific averments. Petition disposed of.

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