https://www.taxtmi.com/caselaws?id=340404 An erstwhile director who had resigned before dishonour of the cheques and before the cause of action arose could not be made vicariously liable under Section 141 of the Negotiable Instruments Act for an offence under Section 138. Vicarious liability under Section 141 is penal in nature and must be strictly construed; a complaint must contain specific averments showing how the accused was in charge of and responsible for the company's business at the relevant time. As the cheques were issued after resignation, the resignation was reflected in company records, and no clear particulars showed involvement in day-to-day affairs, the complaint and criminal proceedings were liable to be quashed. en-us Mon, 06 Mar 2017 00:00:00 +0530 Sat, 25 Jun 2022 11:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340404 An erstwhile director who had resigned before dishonour of the cheques and before the cause of action arose could not be made vicariously liable under Section 141 of the Negotiable Instruments Act for an offence under Section 138. Vicarious liability under Section 141 is penal in nature and must be strictly construed; a complaint must contain specific averments showing how the accused was in charge of and responsible for the company's business at the relevant time. As the cheques were issued after resignation, the resignation was reflected in company records, and no clear particulars showed involvement in day-to-day affairs, the complaint and criminal proceedings were liable to be quashed. Case-Laws Indian Laws Mon, 06 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340404