SC Upholds NI Act Prosecution of Office Bearers Who Signed Loan Documents Despite Not Signing Dishonoured Cheque

Mansi Finance (Chennai) Ltd. Vs M. Lalitha And Others (Supreme Court of India) Office Bearers Who Signed Loan Documents Can Face NI Act Prosecution Even if They Did Not Sign the Dishonoured Cheque; Mere Designation Not Enough for Vicarious Liability: Supreme Court In a significant ruling, the Supreme Court in M/s Mansi Finance (Chennai) Ltd. v. M. Lalitha & Ors. held that while mere designation as an office bearer of a society is insufficient to attract liability under Sections 138 and 141 of the Negotiable Instruments Act, prosecution can continue against those who were actively involved ...