Dishonour of Cheque --Non-Signatory Director Not Liable Under Section 138 NI Act In Absence of Specific Active Role Averments
Vicarious liability of a director under Section 141 of the Negotiable Instruments Act requires specific averments in the complaint establishing that the accused was in charge of and responsible for the conduct of business of the company. Total silence in a complaint regarding a non-signatory director's role in the transaction constitutes a jurisdictional defect that cannot be cured by procedural delay or participation in trial. Where debt is restructured, vicarious liability narrows strictly to those involved in the settlement process. Designation as director alone does not create deemed liability.
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