https://www.taxtmi.com/caselaws?id=766870 SC held that non-executive directors cannot be held liable under Section 138 read with Section 141 of the Negotiable Instruments Act without specific allegations demonstrating their direct involvement in company affairs. The court emphasized that mere directorship does not create automatic liability; only those actively in charge of day-to-day business operations can be held accountable. The complaint lacked specific averments establishing direct nexus between appellants and financial transactions. Their involvement was purely non-executive, limited to governance oversight without extending to financial decision-making or operational management. Criminal proceedings against appellants were quashed and appeal allowed. en-us Tue, 04 Mar 2025 00:00:00 +0530 Wed, 08 Apr 2026 10:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766870 SC held that non-executive directors cannot be held liable under Section 138 read with Section 141 of the Negotiable Instruments Act without specific allegations demonstrating their direct involvement in company affairs. The court emphasized that mere directorship does not create automatic liability; only those actively in charge of day-to-day business operations can be held accountable. The complaint lacked specific averments establishing direct nexus between appellants and financial transactions. Their involvement was purely non-executive, limited to governance oversight without extending to financial decision-making or operational management. Criminal proceedings against appellants were quashed and appeal allowed. Case-Laws Indian Laws Tue, 04 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766870