https://www.taxtmi.com/caselaws?id=451125 The Bombay HC quashed prosecution against independent non-executive directors of a company under Section 138 read with Section 141 of the Negotiable Instruments Act. The court held that vicarious liability under Section 141 requires specific averments showing how directors were responsible for company's business conduct. The complaint lacked allegations that the offence was committed with directors' consent, connivance, or due to their neglect. Non-executive directors are not involved in day-to-day company affairs. Prosecuting independent non-executive directors without proper averments would constitute abuse of court process. Petition allowed. en-us Tue, 12 Mar 2024 00:00:00 +0530 Thu, 21 Mar 2024 06:58:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451125 The Bombay HC quashed prosecution against independent non-executive directors of a company under Section 138 read with Section 141 of the Negotiable Instruments Act. The court held that vicarious liability under Section 141 requires specific averments showing how directors were responsible for company's business conduct. The complaint lacked allegations that the offence was committed with directors' consent, connivance, or due to their neglect. Non-executive directors are not involved in day-to-day company affairs. Prosecuting independent non-executive directors without proper averments would constitute abuse of court process. Petition allowed. Case-Laws Indian Laws Tue, 12 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451125