Just a moment...
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
Press 'Enter' after typing page number.
Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
Press 'Enter' after typing page number.
Press 'Enter' after typing page number.
Don't have an account? Register Here
Press 'Enter' after typing page number.
Issues: Whether a director can be prosecuted for an offence under Section 138 of the Negotiable Instruments Act, 1881 in the absence of specific averments in the complaint that he was in charge of and responsible for the conduct of the company's business at the relevant time.
Analysis: For fastening vicarious criminal liability under Section 141 of the Negotiable Instruments Act, 1881, the complaint must specifically aver that, at the time of the offence, the accused was in charge of and responsible for the conduct of the company's business. Mere status as a director is not enough. Where the complaint contains only general allegations and does not attribute any role in the day-to-day affairs of the company, the statutory requirements for prosecution are not satisfied. On the material placed, the applicant was shown only as a nominee director, and the complaint lacked the necessary specific assertions.
Conclusion: The prosecution against the applicant could not be sustained, and the summoning order, as affirmed in revision, was liable to be quashed.