https://www.taxtmi.com/caselaws?id=763996 For prosecution under the Negotiable Instruments Act, 1881, arraignment of the company is a prerequisite before vicarious liability can be imposed on its directors or employees. Where a cheque is drawn on a company account but the company is not impleaded or proceeded against as an accused, the complaint is legally defective because Sections 138, 141 and 142 require strict construction in view of the penal nature of the liability. On that basis, proceedings against the directors and cashier alone were not maintainable and were liable to be quashed. en-us Mon, 23 Dec 2024 00:00:00 +0530 Wed, 01 Jan 2025 17:32:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763996 For prosecution under the Negotiable Instruments Act, 1881, arraignment of the company is a prerequisite before vicarious liability can be imposed on its directors or employees. Where a cheque is drawn on a company account but the company is not impleaded or proceeded against as an accused, the complaint is legally defective because Sections 138, 141 and 142 require strict construction in view of the penal nature of the liability. On that basis, proceedings against the directors and cashier alone were not maintainable and were liable to be quashed. Case-Laws Indian Laws Mon, 23 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763996