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...basis of merely holding a designation or office in a company.13. Section 141 is a penal provision creating vicarious liability, and which, as per settled law, must be strictly construed. It is th...the accused Company for the conduct of its business. This is in consonance with strict interpretation of penal statutes, especially, where such statutes create vicarious liability.14. A ...connected with a company, the principal accused being the company itself. It is a departure from the rule in criminal law against vicarious liability. A clear case should be spelled out in the complaint...
...Magistrate is required to apply his mind. The Penal Code does not contain any provision for attaching vicarious liability on the part of the Managing Director or the Directors of the Company when the...personal capacity seem to be absolutely vague. When a complainant intends to rope in a Managing Director or any officer of a company, it is essential to make requisite allegation to constitute the vicarious...entirety, would lead to the conclusion that the respondents herein were personally liable for any offence. The Bank is a body corporate. Vicarious liability of the Managing Director and Director would arise...
...2 is well aware of the fact that the appellant was no longer a part of M/s Elite International (P) Ltd., yet initiated criminal proceedings fastening vicarious liability on the appellant.6. The learned cou...attributing any specific role, that the Director is responsible for the conduct of the business would not make a case of vicarious liability against a Director of the company under Section 141 of the...of the running of its business and only monitors the executive activity. To fasten vicarious liability under Section 141 of the Act on a person, at the material time that person shall have been at the helm of affairs of the ...
...company.(iii) Vicarious liability can be inferred against a company registered or incorporated under the Companies Act, 1956 only if the requisite statements, which...criminal law in terms of Section 141 of the NI Act cannot be fastened because of the civil liability. Vicarious liability under sub-section (1) to Section 141 of the NI Act can be pinned when the person is in overall contro...firm. Vicarious liability under sub-section (2) to Section 141 of the NI Act can arise because of the director, manager, secretary, or other officer's personal conduct, functional or transactional role, notwithstanding that the pers...
...vicarious liability of a Director in a company which is being prosecuted for the offence under Section 138 of the NI Act has come up for consideration before this Court on more than one occasion. In....(iii) Vicarious liability can be inferred against a company registered or incorporated under the Companies Act, 1956 only if the requisite statements, which are...them that she could not continue business with them and asked for return of her money.5. Accordingly, for and on behalf of the Company, in discharge of the existing liability...
...recorded unless the company is before the court, more so, when it enjoys the status of a separate legal entity. That apart, the liability of the individual as per the provision is vicarious and such...as the company” in Section 141(1) of the Act cannot mean that no offence need be committed by the company to attract the vicarious liability of the officers in charge of the management of the company becau...corporate criminal liability and vicarious liability of a person who is in charge of the company. What averments should be required to make a person vicariously liable has been dealt with in S.M.S...
...statement to the above effect is required to be made in the complaint petition to proceed against an officer of the Company so as to determine his vicarious liability for the offence committed by the company. In...liability for offences committed by a Company.“74. Offences by companies and power of court to publish name, place of business, etc. of companies convicted - (1) If an.... The offence, therefore, has been committed by the Company and the appellant has been sought to be made vicariously liable merely because at the relevant point of time he was holding the office of...
..., a person although is not personally liable for commission of such an offence would be vicariously liable therefor. Such vicarious liability can be inferred so far as a company registered or...and was not responsible for the conduct of the business of the company at the relevant time, will not be liable under the provision. The liability arises from being in charge of and responsible for the...office or designation in a company may be liable if he satisfies the main requirement of being in charge of and responsible for the conduct of business of a company at the relevant time. Liability...
...being the company itself. It is a departure from the rule in criminal law against vicarious liability. A clear case should be spelled out in the complaint against the person sought to be made liable...the liability of these persons is joint and several. It was stated that certain cheques had been issued by the Company which were dishonoured on being presented. After giving the necessary notice the....11. Section 141 of the Act in terms postulates constructive liability of the Directors of the company or other persons responsible for its conduct or the business of the company...
....”It is thus seen that the vicarious liability of a person for being prosecuted for an offence committed under the Act by a company arises if at the material time he was in...:“13. Section 141 is a penal provision creating vicarious liability, and which, as per settled law, must be strictly construed. It is therefore, not sufficient to make a bald cursory statement in a comp...consonance with strict interpretation of penal statutes, especially, where such statutes create vicarious liability.14. A company may have a number of Directors and to make...
...vicarious liability. It is interesting to note that Section 14-A of the 1952 Act specifically creates an offence of criminal breach of trust in respect of the amount deducted from the employees by the company. In...even in a case falling under Section 406 of the Penal Code vicarious liability has been held to be not extendable to the Directors or officers of the company. (See...Code, save and except some provisions specifically providing therefor, does not contemplate any vicarious liability on the part of a party who is not charged directly for commission of an offence...
...vicarious liability to persons who are not named in it.18. In the case on hand, we are concerned with criminal liability on account of dishonour of a cheque. It primarily falls on the drawer, if ...drawer company and is extended to the officers of the company. The normal rule in the cases involving criminal liability is against vicarious liability. To...sought to be fastened vicariously on a person connected with the company, the principal accused being the company itself. It is a departure from the rule in criminal law against vicarious liability...
...of the said provision, a person although is not personally liable for commission of such an offence would be vicariously liable therefor. Such vicarious liability can be inferred so far as a company registered...persons have failed to clear the liability. The accused, being the Company and all the Directors, are responsible for the clearance of liability under Section 141 of the NI Act and the acts and deeds...respondent allegedly on behalf of a company known as Karnataka News Net (Bangalore) Ltd. The appellants herein were not Directors of the said Company at the material time. Two complaint petitions were filed...
...association of persons.8. The concept of vicarious liability was introduced in penal statutes like the Negotiable Instruments Act to make the Directors, partners or other persons, in charge of and control ...comes within the purview thereof, nobody else can be prosecuted by way of his vicarious liability in such a capacity. If the offence has not been committed by a company, the question of there being a....…”7. A bare perusal of the complaint petition would show that Accused 1 was described therein as “a business concern”. It was not described as a company or a partnership firm or an...
...Section 138 of the NI Act. The vicarious liability of Director/secretary/manager/other officers of a company under Section 141 of the NI Act has to be understood in the light of the statutory language...personally liable for commission of such an offence, would be vicariously liable therefor. Such vicarious liability can be inferred against the company only if the requisite statement is made in the...) Vicarious liability can be inferred against a company registered or incorporated under the Companies Act, 1956 only if the requisite statements, which are required to be averred in the complaint/petition, are...
.... Hence, there are no grounds to quash the impugned proceedings.”4. It is not in dispute that for showing a vicarious liability of a Director of a company upon the...Instruments Act. The first respondent filed a complaint in the Court of Third Additional Chief Metropolitan Magistrate, Hyderabad. In regard to the liability of the appellant, which is vicarious in...time, will not be liable under the provision. The liability arises from being in charge of and responsible for the conduct of business of the company at the relevant time when the offence was committed...
...all.15. Cases have arisen under other Acts where similar provisions are contained creating vicarious liability for officers of a company in cases where primary liability is.... Brij Lal Mittal (1998) 5 SCC 343 it was held that vicarious liability of a person for being prosecuted for an offence committed under the Act by a company arises if at the material time he was in...141 extends such criminal liability in case of a company to every person who at the time of the offence, was in charge of, and was responsible for the conduct of the business of the company. By a...
...Company (Accused 2 to 7) in the original complaint were not based on any vicarious liability but on the specific allegations of their having conspired together to cheat and commit breach of trust, which...vicarious liability; and moreover, the complainant needs to specifically allege the act/complaint of/against the individual Director and what role such individual Director had played. The learned counsel submitted that the complaina...concept of ‘vicarious liability’ is unknown to criminal law. As observed earlier, there is no specific allegation made against any person but the members of the Board and senior executives are joined as the persons looking after the...
...Ltd. case (2005) 8 SCC 89, wherein the question of vicarious liability in criminal jurisprudence had been considered and it was held that a Director cannot ipso facto be deemed to be in charge of and responsible to the ...-emphasised the decision of this Court in Everest Advertising (P) Ltd. case (2007) 5 SCC 54 with regard to the question of vicarious liability of the Directors of a ...case under Article 136 of the Constitution.33. On the question of vicarious liability of the Directors of the Company, in relation to the evidence alleged to have been...
...company's servant or agent. In that case any liability of the company can only be a statutory or vicarious liability.’63. From the above it becomes evident that a.... As demonstrated hereinafter, this proposition would run contrary to the principle of vicarious liability detailing the circumstances under which a Director of a company can be held liable...cardinal principle of criminal jurisprudence that there is no vicarious liability unless the statute specifically provides so.43. Thus, an individual who has perpetrated the commission of an offence ...