CDJ Team
05 March 2025
Code of Criminal Procedure, 1973 – quash - Negotiable Instruments Act, 1881 - Section 138 – dishonor of the cheques - vicarious liability - (CDJ 2025 SC 374) -
Non-executive and independent director(s) cannot be held liable under Section 138 read with Section 141 of the NI Act unless specific allegations demonstrate their direct involvement in affairs of the company at the relevant time. The mere fact that Appellant(s) attended board meetings does not suffice to impose financial liability on the Appellant(s), as such attendance does not automatically translate into control over financial operations.
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