Monday, February 16, 2026

Cheque Dishonour and Offence by Company : Supreme Court Explains the Legal Position

Cheque Dishonour and Offence by Company : Supreme Court Explains the Legal Position

"The provisions of S. 141 of Negotiable Instruments Act, 1881 impose vicarious liability by deeming fiction which presupposes and requires the commission of the offence by the company or firm. Therefore, unless the company or firm has committed the offence as a principal accused, the persons mentioned in sub-section (1) or (2) would not be liable and convicted as vicariously liable." 

Dilip Hariramani v. Bank of Baroda [2022] GCtR 2009 (SC)

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Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881 : Who can Maintain a Complaint for Cheque Dishonour

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