Insights & Resources

The Supreme Court has quashed a cheque bounce complaint under Section 138 of the NI Act, citing deliberate suppression of critical defence documents by the complainant. The judgment reinforces that criminal prosecution cannot proceed where procedural fairness is compromised. This decision underscores the duty of complainants to disclose all material facts when initiating criminal process.

In K.S. Mehta v. Morgan Securities, the Supreme Court decisively addressed the vicarious liability of non-executive directors under the Negotiable Instruments Act, 1881. Reinforcing strict construction principles, the Court quashed criminal proceedings against directors lacking active involvement, setting a clear precedent on the necessity of specific allegations for liability under Section 141.

SC upholds acquittal in cheque bounce case, emphasising robust evidence over mere legal presumption.

The Supreme Court recently held that no liability could be fixed on independent, non-executive directors who were not involved in the...