Non-executive director's vicarious liability u/s 138 of the ...

Director not liable for company's bounced cheques unless actively involved in operations.

Case Laws Indian Laws

November 8, 2024

Non-executive director's vicarious liability u/s 138 of the Negotiable Instruments Act for dishonor of cheques issued by the company examined. Specific averments and evidence required to establish director's active role and responsibility for the offense. Mere designation as Chairman insufficient to attribute day-to-day charge. Complaint lacking necessary averments against petitioner non-executive director quashed to prevent abuse of court process.

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Non-executive director's vicarious liability u/s 138 of the ...

Director not liable for company's bounced cheques unless actively involved in operations.

Case Laws Indian Laws

November 8, 2024

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