Negotiable Instruments Act,1981 :: Liability for dishonour of cheque ::

Court :
Supreme Court

Brief :
Held by Ho"ble court that liability u/s 141 is attracted if the person accused was incharge of and responsible for conduct of the company at the time of the offence. Hence the above mentioned fact has to be established before applying section 141.

Citation :
S.M.S. Pharmaceuticals Ltd. Neeta Bhalla Vs. Neeta Bhalla

Liability for dishonour of cheque S.M.S. Pharmaceuticals Ltd. Neeta Bhalla Vs. Neeta Bhalla 9/20/2005 (2005) 148 Taxman 128 (SC) Case Fact: Whether it is necessary to show that the person accused was incharge of and responsible for conduct of business of the company at the time the offence was committed to held him liable u/s 141. Decision: Held by Ho"ble court that liability u/s 141 is attracted if the person accused was incharge of and responsible for conduct of the company at the time of the offence. Hence the above mentioned fact has to be established before applying section 141.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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