https://www.taxtmi.com/highlights?id=79301 The law regarding the liability of a director for an offence u/s 138 of the Negotiable Instruments Act committed by a company is well-established. Section 141, being a penal provision, must be strictly construed. Only directors who were in charge of the day-to-day affairs and responsible for the conduct of the company's business can be held liable. The word 'in-charge of business' implies having overall control of the day-to-day business. To establish vicarious liability, the complainant must show that the director was associated with the day-to-day affairs and management. A director cannot be accused based on a cursory statement or vague averment. The appropriate pleadings/averments will be determined case-by-case. In the present case, the..... en-us Thu, 11 Jul 2024 08:35:17 +0530 Thu, 11 Jul 2024 08:35:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=79301 The law regarding the liability of a director for an offence u/s 138 of the Negotiable Instruments Act committed by a company is well-established. Section 141, being a penal provision, must be strictly construed. Only directors who were in charge of the day-to-day affairs and responsible for the conduct of the company's business can be held liable. The word 'in-charge of business' implies having overall control of the day-to-day business. To establish vicarious liability, the complainant must show that the director was associated with the day-to-day affairs and management. A director cannot be accused based on a cursory statement or vague averment. The appropriate pleadings/averments will be determined case-by-case. In the present case, the..... Highlights Indian Laws Thu, 11 Jul 2024 08:35:17 +0530 https://www.taxtmi.com/highlights?id=79301