https://www.taxtmi.com/caselaws?id=386877 Section 141 of the Negotiable Instruments Act, 1881 creates vicarious liability for directors, officers, and similar persons only when the company, as the principal offender in a cheque dishonour prosecution, is arraigned as an accused. Where a cheque is issued in the name of the company, prosecution against a signatory or managing director alone, without joining the company, suffers from a foundational defect. Here, although the applicant signed the cheque as managing director, the company was not made an accused, so the process issued against the applicant alone could not be sustained and was quashed. en-us Fri, 04 Oct 2019 00:00:00 +0530 Fri, 11 Oct 2019 11:01:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=386877 Section 141 of the Negotiable Instruments Act, 1881 creates vicarious liability for directors, officers, and similar persons only when the company, as the principal offender in a cheque dishonour prosecution, is arraigned as an accused. Where a cheque is issued in the name of the company, prosecution against a signatory or managing director alone, without joining the company, suffers from a foundational defect. Here, although the applicant signed the cheque as managing director, the company was not made an accused, so the process issued against the applicant alone could not be sustained and was quashed. Case-Laws Indian Laws Fri, 04 Oct 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=386877