https://www.taxtmi.com/caselaws?id=393103 Vicarious liability for cheque dishonour cannot be imposed on non-executive or independent directors merely because they hold the office of director. Criminal process under Section 138 read with Section 141 of the Negotiable Instruments Act requires specific averments showing how and in what manner the accused was in charge of and responsible for the company's business at the relevant time; bald or general allegations are insufficient, especially where the record shows the directors were neither managing directors nor cheque signatories. Section 149(12) of the Companies Act, 2013 similarly limits liability of independent and non-executive directors unless the act or omission occurred with knowledge, consent, connivance, or lack of diligence. On the pleaded material, the summoning order could not be sustained. en-us Tue, 03 Mar 2020 00:00:00 +0530 Wed, 18 Mar 2020 14:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=393103 Vicarious liability for cheque dishonour cannot be imposed on non-executive or independent directors merely because they hold the office of director. Criminal process under Section 138 read with Section 141 of the Negotiable Instruments Act requires specific averments showing how and in what manner the accused was in charge of and responsible for the company's business at the relevant time; bald or general allegations are insufficient, especially where the record shows the directors were neither managing directors nor cheque signatories. Section 149(12) of the Companies Act, 2013 similarly limits liability of independent and non-executive directors unless the act or omission occurred with knowledge, consent, connivance, or lack of diligence. On the pleaded material, the summoning order could not be sustained. Case-Laws Indian Laws Tue, 03 Mar 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=393103