A.K.Singhania vs Gujarat State Fertilizer Co.Ltd.& Anr

The Supreme Court addressed the issue of criminal liability under Section 138 of the Negotiable Instruments Act concerning A.K. Singhania and Vikram Prakash, who were implicated as directors of Esslon Synthetics Ltd. The Court held that the directors can be held liable for the company's actions if they were in charge of and responsible for the conduct of the business at the time the offence was committed. The Court overturned the High Court's decision that quashed the prosecution against Vikram Prakash, reinstating the charges against him and affirming the applicability of Section 138 in corporate governance contexts.