ValkyaEditorial

Tagged “vicarious-liability”

5 articles on vicarious-liability.

Supreme CourtSupreme Court of India

Aneeta Hada v. Godfather Travels & Tours (2012): arraigning the company is a sine qua non under s.141

A three-judge bench of the Supreme Court held that a prosecution under Section 141 of the Negotiable Instruments Act cannot stand against a director or authorised signatory unless the company itself is arraigned as an accused. Vicarious liability is derivative, and the principal offender must be on the record before secondary liability can attach.

Valkya Editorial··6 min
Supreme CourtSupreme Court of India

Bijoy Kumar Moni v. Paresh Manna (2024): only the drawer of a cheque can be prosecuted under Section 138

The Supreme Court held that liability under Section 138 of the Negotiable Instruments Act attaches only to the drawer who maintains the account on which the cheque is drawn. A director who signs a cheque on his company's account does not become the drawer in his personal capacity, and cannot be prosecuted unless the company itself is arraigned.

Valkya Editorial··6 min
Supreme CourtSupreme Court of India

Kamalkishor Taparia v. India Ener-Gen (2025): a non-executive director is not vicariously liable under Section 141 NI Act absent specific averments

The Supreme Court quashed cheque-dishonour proceedings against an independent non-executive director, holding that mere designation as a director does not attract Section 141 liability. Vicarious liability under the NI Act must be pleaded and proved with specific averments that the director was in charge of and responsible for the company's business.

Valkya Editorial··6 min