https://www.taxtmi.com/caselaws?id=303161 Criminal prosecution for cheque dishonour is not barred merely because the company is under liquidation, since proceedings under the Negotiable Instruments Act are penal and do not amount to recovery of company assets. Vicarious liability of a director under Sections 138 and 141 arises only if the complaint specifically avers that the director was, at the relevant time, in charge of and responsible for the company's business; mere directorship is insufficient. Where credible material shows that a director resigned before the cheque was issued, and the complaint lacks specific allegations of active responsibility, prosecution against that director cannot be sustained. en-us Mon, 26 Aug 2019 00:00:00 +0530 Wed, 06 Jul 2022 22:00:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=303161 Criminal prosecution for cheque dishonour is not barred merely because the company is under liquidation, since proceedings under the Negotiable Instruments Act are penal and do not amount to recovery of company assets. Vicarious liability of a director under Sections 138 and 141 arises only if the complaint specifically avers that the director was, at the relevant time, in charge of and responsible for the company's business; mere directorship is insufficient. Where credible material shows that a director resigned before the cheque was issued, and the complaint lacks specific allegations of active responsibility, prosecution against that director cannot be sustained. Case-Laws Indian Laws Mon, 26 Aug 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=303161