Dishonour of cheque - vicarious liability - liability of group ...
Indian Laws
April 25, 2024
Dishonour of cheque - vicarious liability - liability of group companies - liability common Directors of the group, namely, Right Choice Group of Companies - Lifting of the corporate veil - The High court highlighted that for vicarious liability to apply, specific allegations and evidence pointing to the role and control of the individuals over the company’s operations are necessary. The judgment delved into the principle of the corporate veil, stating that mere affiliation of companies under the same group does not suffice to establish liability unless it is shown that they function as one economic entity. The court declined to lift the corporate veil merely based on group association and common branding in marketing materials.
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