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        Indian Laws

        Dishonor of Cheque - vicarious liability of the non-signing...

        Non-signing partners can be liable u/s 138, Negotiable Instruments Act for cheque dishonor if responsible for business conduct.

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                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.
                                Dishonor of Cheque - vicarious liability of the non-signing partners - It is settled that in terms of explanation of Section 141 of the NI Act, the expression “company” would mean any body corporate and includes a firm or other association of individuals. Sub-section 1 of Section 141 postulates that where an offence is committed under Section 138 by a company, the company as well as every person who, at the time when the offence was committed, was in charge of and was responsible to the company for the conduct of the business shall be deemed to be guilty of the offence - HC
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