31/05/2026
⚖️ SUPREME COURT ON CHEQUE BOUNCE CASES UNDER NI ACT ⚖️
📌 Mere designation as an office bearer of a society is NOT enough to attract criminal liability under Section 138/141 of the Negotiable Instruments Act.
In a significant judgment, the Hon’ble Supreme Court held that an office bearer, trustee, president, secretary, or committee member of a society cannot be prosecuted for cheque dishonour merely because of their position.
🔹 The complaint must specifically show that the person was: ✔️ In charge of the conduct of the business of the society; and ✔️ Responsible for the transaction leading to the issuance of the cheque.
🔹 Vicarious liability cannot be imposed on assumptions or designation alone.
🔹 Courts must examine whether there are clear allegations showing the active role and responsibility of the accused in the affairs of the society.
📖 KEY LEGAL PRINCIPLE: “Criminal liability follows responsibility, not merely designation.”
⚠️ This judgment reinforces the settled principle that criminal prosecution cannot be used mechanically against every office bearer without specific allegations demonstrating their involvement.
👨⚖️ LEGAL TAKEAWAY: Before initiating proceedings under Section 138 read with Section 141 NI Act, the complainant must establish a factual foundation showing the accused's active role in the conduct of the business and the transaction in question.
— For legal awareness only. This post does not constitute legal advice.