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<h1>Supreme Court: Directors Need Specific Allegations for Liability in Cheque Dishonour Cases u/s 138 of Negotiable Instruments Act.</h1> The Supreme Court of India clarified the vicarious liability of directors in cheque dishonour cases under Section 138 of the Negotiable Instruments Act, 1881. The case involved a dispute between two companies, where the complainant filed criminal complaints against the accused company and its directors. The appellant, a director, contested the complaints, arguing her non-involvement in daily operations. The Court ruled that mere allegations without specific averments on a director's role in company operations are insufficient for vicarious liability. Consequently, the Court quashed the criminal proceedings against the appellant, reinforcing the necessity for clear evidence of a director's responsibility in such cases.
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