2009 (7) TMI 758 - SUPREME COURT

Who can be said to be persons "in-charge of, and was responsible to the company for the business of the company" referred to in section 141 of the Negotiable Instruments Act, 1881?

Held that:- Appeal dismissed. No error/infirmity in the order quashing the summons as against the first respondent who was the Deputy General Manager of the company which issued the dishonoured cheque as Deputy General Manager is not a person who is responsible to the company for the conduct of the business of the company. He does not fall under any of the categories (a) to (g) listed in section 5 of the Companies Act. Therefore, the question whether he was in charge of the business of the company or not, is irrelevant. He cannot be made vicariously liable under section 141(1) of the Act.