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    <title>2019 (1) TMI 1373 - DELHI HIGH COURT</title>
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    <description>Vicarious liability under Section 141 of the Negotiable Instruments Act, 1881 is strictly construed, so a complaint must contain specific averments that the accused was in charge of and responsible for the company&#039;s business when the offence occurred. Mere designation as a director is insufficient, and a non-executive director who does not manage day-to-day affairs is not automatically exposed to prosecution. On the pleadings described, the complaints did not provide a factual basis for proceeding against the directors and did not address their replies, so the criminal complaints were liable to be quashed.</description>
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      <link>https://www.taxtmi.com/caselaws?id=374208</link>
      <description>Vicarious liability under Section 141 of the Negotiable Instruments Act, 1881 is strictly construed, so a complaint must contain specific averments that the accused was in charge of and responsible for the company&#039;s business when the offence occurred. Mere designation as a director is insufficient, and a non-executive director who does not manage day-to-day affairs is not automatically exposed to prosecution. On the pleadings described, the complaints did not provide a factual basis for proceeding against the directors and did not address their replies, so the criminal complaints were liable to be quashed.</description>
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