A company is accused of an offence under section 138 of the Negotiable Instruments Act, 1881. Which…
Section 141(1) fixes the ordinary test at the time of the section 138 offence. The person must then be in charge of and responsible to the company for the conduct of its…
Choose your answer
A company is accused of an offence under section 138 of the Negotiable Instruments Act, 1881. Which fact supplies the ordinary basis under section 141(1) for proceeding against another person as well?
Answer and explanation
Correct answer D
Section 141(1) fixes the ordinary test at the time of the section 138 offence. The person must then be in charge of and responsible to the company for the conduct of its business.
The statutory provisos qualify liability. Section 141(2) separately addresses consent, connivance or attributable neglect.
Option feedback
Option A
An ordinary directorship alone does not establish the control and responsibility required by section 141(1).
Option B
A passive investment by itself does not establish control or responsibility for conducting the company’s business.
Option C
Section 141(1) tests responsibility and control at the time of the offence.
Option D
The stated control and responsibility at the offence date are the ordinary statutory basis, subject to the provisos.
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