[Section 138 NI Act] No vicarious liability under Section 141 merely because a person was partner at firm which took loan: Supreme Court

The Court held that vicarious liability in the criminal law in terms of Section 141 of the NI Act cannot be fastened merely because of civil liability which falls on partner of a firm.
Cheque Bouncing
Cheque Bouncing

The Supreme Court on Monday held that criminal liability for cheque bounce cases under Section 138 of the Negotiable Instruments Act (NI Act) cannot be fastened on a person merely because he was a partner at the firm that had taken the loan or that he stood as a guarantor for such a loan [Dilip Hariramani vs Bank of Baroda].

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