EVEREST ADVERTISING PVT. LTD. vs STATE, GOVT. OF NCT OF DELHI .

The Supreme Court upheld the decision of the Delhi High Court regarding the liability of the Chairman and Managing Director of Dalmia Industries Ltd. under Section 138 of the Negotiable Instruments Act, 1881, for dishonored cheques issued as part payment for advertising services. The Court established that individuals in charge of a company can be held criminally liable if they are responsible for the conduct of the business and the offence is committed with their connivance. The appeal was dismissed, affirming the High Court's order to proceed with the criminal complaints against the accused.