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    <title>2017 (12) TMI 1100 - DELHI HIGH COURT</title>
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    <description>Vicarious liability for dishonour of cheque prosecution under the Negotiable Instruments Act must be specifically pleaded and strictly established. A complaint cannot sustain a summoning order against a person merely on a bald assertion of directorship or general responsibility; it must set out the role and manner in which the person was in charge of and responsible for the company&#039;s business. Where company records do not show the person as a director at the relevant time and the cheques were issued by the Managing Director, criminal process against that person is unsustainable. The summoning order and consequential proceedings were set aside.</description>
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    <pubDate>Tue, 19 Dec 2017 00:00:00 +0530</pubDate>
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      <link>https://www.taxtmi.com/caselaws?id=352831</link>
      <description>Vicarious liability for dishonour of cheque prosecution under the Negotiable Instruments Act must be specifically pleaded and strictly established. A complaint cannot sustain a summoning order against a person merely on a bald assertion of directorship or general responsibility; it must set out the role and manner in which the person was in charge of and responsible for the company&#039;s business. Where company records do not show the person as a director at the relevant time and the cheques were issued by the Managing Director, criminal process against that person is unsustainable. The summoning order and consequential proceedings were set aside.</description>
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