Vicarious liability for cheque dishonour requires specific averments of responsibility; mere director status is not enough.

Vicarious liability under Section 141 of the Negotiable Instruments Act requires specific averments that the accused was in charge of and responsible for the company's business when the offence occurred. Mere designation as a director is insufficient, and liability cannot be inferred without particulars or supporting material. On the stated facts, the accused was appointed after the cheques were issued and was not a signatory, so he could not be treated as responsible at the relevant time. The summoning orders were therefore held unsustainable.

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Issues: Whether the petitioner could be proceeded against under Section 141 of the Negotiable Instruments Act, 1881 for dishonour of cheques issued before his appointment as an additional non-executive director, despite no averments of any specific role, no status as a cheque signatory, and no material showing that he was in charge of or responsible for the company's business at the relevant time.

Analysis: Liability under Section 141 of the Negotiable Instruments Act, 1881 arises only where the complaint contains specific averments that the accused was in charge of and responsible for the conduct of the business of the company when the offence was committed. Mere designation as a director is insufficient, and vicarious liability cannot be inferred in the absence of particularised allegations or supporting material. The record showed that the petitioner was appointed only on 25.10.2019, while the cheques in question were issued on 24.07.2019, and he was not a signatory to the cheques. On these facts, he could not be treated as responsible for the company's business at the relevant time, and the summoning orders had been issued without proper judicial scrutiny.

Conclusion: The petitioner cannot be fastened with vicarious liability under Section 141 of the Negotiable Instruments Act, 1881 on the basis of the complaint and record, and the summoning orders against him were unsustainable.

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