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2019 (1) TMI 571 - HC - Indian LawsDishonor of Cheque - insufficient funds - involvement of the accused/Director of the company in the complaint - vicarious liability u/s 141 of the Negotiable Instruments Act - Held that:- The documents relied upon by the petitioners are required to be tested in evidence. The complainant has made primafacie case against the petitioners. Apart from the avermentas made in the complaint, there is evidence to indicate the involvement of the petitioners in the transactions of the accused No.1 Company. In the circumstances, the submissions advanced by the petitioners cannot be accepted. 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 complaint that the Director is Incharge of and responsible to the Company for the conduct of the business of the Company without anything more as to the role of the Director. It can be seen that the complainant has made out a case for invoking vicarious liability under Section 141 of the Negotiable Instruments Act and the contentions of the accused can be agitated only at the time of trial. - The decisions relied upon by the learned Counsel for the petitioners can be distinguished on the basis of factual matrix of the present case. Petitions dismissed.
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