Crl.A. No. 001692 - 001718 / 2013

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Under Section 141 of the Negotiable Instruments Act, 1881, a director of a company cannot be held vicariously liable for an offence under Section 138 merely by virtue of holding directorial office; the complaint must contain a specific averment that the accused was, at the time the offence was committed, in charge of and responsible for the conduct of the business of the company. As analysed on casestatus.in, mere allegations of consultation in business decisions are insufficient to satisfy this essential statutory requirement. Vicarious liability must be expressly pleaded and cannot be inferred from general averments of directorial responsibility.