https://www.taxtmi.com/caselaws?id=758998 The Delhi HC quashed a criminal complaint under Section 138 read with Section 141 of the NI Act against a petitioner who served as Additional Independent Non-Executive Director. The petitioner was appointed on 26.02.2020 and resigned on 08.12.2021, but was not a director when the loan was taken. The complaint lacked specific allegations showing how the petitioner was in charge of day-to-day affairs. Company records showed the petitioner's name was not reflected as director and he attended none of the nine board meetings during FY 2020-21. Following SC precedents, the HC held that vicarious liability cannot be fastened on directors not involved in day-to-day operations, making continuation of proceedings an abuse of process. en-us Thu, 19 Sep 2024 00:00:00 +0530 Sun, 22 Sep 2024 07:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758998 The Delhi HC quashed a criminal complaint under Section 138 read with Section 141 of the NI Act against a petitioner who served as Additional Independent Non-Executive Director. The petitioner was appointed on 26.02.2020 and resigned on 08.12.2021, but was not a director when the loan was taken. The complaint lacked specific allegations showing how the petitioner was in charge of day-to-day affairs. Company records showed the petitioner's name was not reflected as director and he attended none of the nine board meetings during FY 2020-21. Following SC precedents, the HC held that vicarious liability cannot be fastened on directors not involved in day-to-day operations, making continuation of proceedings an abuse of process. Case-Laws Indian Laws Thu, 19 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758998