Vicarious liability for cheque dishonour requires specific allegations linking each director to the company's business and transaction.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Vicarious liability of directors for cheque dishonour under Section 141 of the Negotiable Instruments Act requires specific averments showing how and in what manner each director was in charge of, and responsible for, the company's business. A general statement that all directors managed daily affairs is insufficient, particularly where the complaint neither assigns an individual role nor identifies the cheque signatory. The notes state that absent these foundational allegations, proceedings against a non-signatory director amount to abuse of process and may be quashed insofar as that director is concerned.....