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    <title>Directors Cannot Escape Vicarious Liability Under NI Act Sections 138/141 Without Proving Non-involvement During Trial</title>
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    <description>HC affirmed vicarious liability of company directors under Sections 138/141 of NI Act in cheque dishonor case. Directors challenged summoning orders claiming non-involvement in company&#039;s daily operations. Court held that while complainant must aver director&#039;s responsibility for company affairs, burden shifts to accused to prove non-involvement during trial. Court rejected premature quashing under Section 482 CrPC, noting disputed facts require trial determination. Mere documentary evidence presented insufficient to establish directors&#039; non-involvement conclusively. Petition dismissed as complaint contained requisite elements to proceed against directors, maintaining presumption of vicarious liability pending full trial examination of factual defenses.</description>
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    <pubDate>Wed, 05 Mar 2025 07:49:45 +0530</pubDate>
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      <title>Directors Cannot Escape Vicarious Liability Under NI Act Sections 138/141 Without Proving Non-involvement During Trial</title>
      <link>https://www.taxtmi.com/highlights?id=86235</link>
      <description>HC affirmed vicarious liability of company directors under Sections 138/141 of NI Act in cheque dishonor case. Directors challenged summoning orders claiming non-involvement in company&#039;s daily operations. Court held that while complainant must aver director&#039;s responsibility for company affairs, burden shifts to accused to prove non-involvement during trial. Court rejected premature quashing under Section 482 CrPC, noting disputed facts require trial determination. Mere documentary evidence presented insufficient to establish directors&#039; non-involvement conclusively. Petition dismissed as complaint contained requisite elements to proceed against directors, maintaining presumption of vicarious liability pending full trial examination of factual defenses.</description>
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      <pubDate>Wed, 05 Mar 2025 07:49:45 +0530</pubDate>
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