Liability u/s 138 or 141 of NI Act arises on person who is responsible for conduct of business

Sunita Palita Vs Panchami Stone Quarry (Supreme Court) Held that the liability under Section 138/141 of the NI Act arises from being in charge of and responsible for the conduct of the business of the company at the relevant time when the offence was committed, and not on the basis of merely holding a designation or office in a company. Facts- The accused company placed orders on the respondent for purchase of stone dust and stone aggregate. Accordingly, respondent raised bill of Rs. 2,31,60,674/-. The accused company issued an account payee cheque for sum of Rs. 1,71,08,512/-. The respondent ...