[Cheque bounce cases] When can company Directors be summoned? Supreme Court explains

"It is necessary to aver in the complaint filed under Section 138 read with Section 141 of the NI Act that at the relevant time when the offence was committed, the Directors were in charge", the Court ruled.
Supreme Court
Supreme Court

The Supreme Court on Friday had the opportunity to explain the circumstances in which Directors of a company can be summoned or held vicariously liable for cases initiated under Section 138 of the Negotiable Instruments Act (NI Act) i.e. cheque bounce cases. (Ashutosh Ashok Parasrampuriya and anr v. M/s Gharrkul Industries Pvt. Ltd. and ors)

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