Case Law Analysis
|Rajasthan High Court
Section 138 NI Act | Nominee Director Liable Only With Specific Averments of Active Role: Rajasthan HC Quashes Proceedings
Rajasthan High Court rules that a nominee director cannot be held vicariously liable under Section 138 of the Negotiable Instruments Act unless the complaint specifically alleges their active involvement or responsibility in the company’s affairs. The ruling underscores that mere nomination by a lending institution does not attract criminal liability without explicit averments.