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february 2025

Supreme Court of India · 2025-02-13

Kamalkishor Shrigopal Taparia vs India Ener Gen Private Limited

Court
Supreme Court of India
Petitioner
Kamalkishor Shrigopal Taparia
Respondent
India Ener Gen Private Limited

Judgment text excerpt

The Supreme Court examined whether an independent non-executive director can be held liable under Section 138 of the Negotiable Instruments Act for dishonor of cheques issued by a company. The High Court dismissed the petition seeking quashing of proceedings, noting the role of the director as a matter of trial and the sufficiency of allegations against the Appellant. The Court upheld the decision, emphasizing that liability depends on the facts established during trial. The case underscores the importance of establishing direct involvement for criminal liability under Section 138.

Kamalkishor Shrigopal Taparia vs India Ener Gen Private Limited · Niyam