Case Law Analysis
|Delhi High Court
Specific averments of personal involvement required to invoke director’s vicarious liability under Sec 141 NI Act | Summons to former director quashed : Delhi HC
The Delhi High Court set aside the trial court’s summons to a former director, ruling that without explicit allegations tying him to the cheque-bounce offence, vicarious liability under Section 141 of the Negotiable Instruments Act cannot be presumed. Plaintiffs must detail the director’s personal role to sustain a summons. The decision limits blanket liability of resigned directors in NI-Act proceedings.