Directors Cannot Escape Vicarious Liability Under NI Act Sections 138/141 Without Proving Non-involvement During Trial

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....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's daily operations. Court held that while complainant must aver director'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' 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.....