Company Directors Liable for Cheque Dishonor: NI Act Sections 138, 139, 141 Allow Proceedings Despite IBC Section 14.

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....Dishonour of Cheque - vicarious liability - It is settled that directors are vicariously liable for the acts committed on behalf of the company. In view of Sections 138, 139 and 141 of the NI Act, it is also clear position of law that under provisions of Section 14 of IBC, the proceedings cannot continue against corporate debtor but can be initiated or continued against natural persons including persons mentioned u/s 141(1) and 141(2) of the NI Act. - whether the cheques were issued as security or towards legally enforceable debt, are all matter of trial and this Court cannot conduct mini trial - HC....