NEGOTIABLE INSTRUMENTS ACT, 1881 – CRIMINAL LIABILITY OF COMPANIES FOR OFFENCE COMMITTED UNDER SECTION 138 – 141 OF THE ACT

This paper attempts to delineate the criminal liability of companies for offence committed by corporate bodies under section 138 – 141 of the Negotiable Instrument Act. The company and all the people responsible for the affairs of the company will be liable to be prosecuted against and punished. As the company is having a separate legal entity, it is not immune to the punishment and fine for offence committed under section 138 of the N.I. Act. The vicarious liability would cast on three category of persons viz: the company itself, every person who was in charge of the affairs of the company, and other persons like director, or a manager, or a secretary, or other officer of the company. To get clarity on the point of law, relevant territorial jurisdiction for filing a complaint, various decisions of the courts is discussed in this study.