09 Jun 2026 08:27 AM
Supreme Court
Supreme Court

Dishonour of Cheque -- Vicarious Liability -- Designation alone without transaction-specific role insufficient to attract liability under Section 141 NI Act

Negotiable Instruments Act, 1881, S.141 -- Dishonour of Cheque -- Vicarious Liability -- Vicarious criminal liability under S.141 cannot be fastened on an office bearer of a society merely by virtue of designation or position -- To attract liability, the complaint must disclose specific factual averments establishing that the person was in charge of and responsible for the conduct of the affairs of the society at the relevant time -- Active participation evidenced by signatures on promissory notes, memoranda of understanding, or allied financial documents constitutes sufficient prima facie material -- Bare allegations relying solely on official status do not satisfy the requirement of S.141.

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