https://www.taxtmi.com/caselaws?id=339227 A Hindu Undivided Family is not an "association of individuals" within the inclusive meaning of "company" in the Explanation to Section 141 of the Negotiable Instruments Act, 1881. The provision contemplates a voluntary combination of persons acting for a common purpose with mutual rights and obligations, whereas an HUF is a status-based unit created by birth and not by free agreement. As a result, the vicarious liability principle used for companies and firms does not extend to an HUF, and prosecution of the Karta or members under Section 138 cannot rest on that classification alone where the HUF is not arraigned as an accused. en-us Tue, 31 Jan 2017 00:00:00 +0530 Wed, 22 Feb 2017 12:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339227 A Hindu Undivided Family is not an "association of individuals" within the inclusive meaning of "company" in the Explanation to Section 141 of the Negotiable Instruments Act, 1881. The provision contemplates a voluntary combination of persons acting for a common purpose with mutual rights and obligations, whereas an HUF is a status-based unit created by birth and not by free agreement. As a result, the vicarious liability principle used for companies and firms does not extend to an HUF, and prosecution of the Karta or members under Section 138 cannot rest on that classification alone where the HUF is not arraigned as an accused. Case-Laws Indian Laws Tue, 31 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339227