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        Indian Laws

        HC dismisses petition regarding vicarious liability under...

        Former Director Not Liable for Company Cheque Bounce: Resignation Breaks Criminal Responsibility Under Section 141 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.
                                HC dismisses petition regarding vicarious liability under Section 141 of Negotiable Instruments Act. The court upheld that a former director cannot be held criminally responsible for cheque dishonour after her resignation, absent specific evidence of continued control or involvement in company affairs. The ruling emphasizes that mere prior association or familial connections are insufficient to establish vicarious liability. The court found no material demonstrating the director's consent, connivance, or neglect in cheque issuance, thereby rejecting criminal proceedings against her under Sections 138 and 141 of the NI Act.
                                Note: It is a system-generated summary and is for quick reference only.
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