The High Court addressed the issue of criminal liability in a...
High Court clarifies: Individuals in charge of company can be held liable in cheque dishonor cases. Legal responsibility upheld u/ss 138 and 141 of NI Act.
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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.
The High Court addressed the issue of criminal liability in a cheque dishonor case involving a company. The complainant failed to specify the authorized signatory or the person in charge of daily affairs. Referring to a Supreme Court ruling, it was established that individuals responsible for a company's affairs can be summoned and penalized u/s 138 with Section 141 of NI Act. The complainant asserted that the accused were fully responsible for the company's operations, shifting the burden to the accused to prove any restrictions on their powers. The court found no flaws in summoning the accused, dismissing the petition.
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