K. Srikanth Singh vs North East Securities Ltd. And Anr

The Supreme Court held that under Section 138 of the Negotiable Instruments Act, a director can only be held vicariously liable if they are in charge of the company's day-to-day affairs at the time of the offence, as stipulated in Section 141. The Court found that the allegations in the complaint established a prima facie case against the directors, including the appellant, as they participated in negotiations for financial assistance. The Court upheld the High Court's decision to not quash the proceedings against the appellant, emphasizing that the question of his directorship at the time of the cheque issuance is a factual matter to be determined at trial.