Site navigation

An association of individuals commits an offence under section 138 of the Negotiable Instruments Act,…

Section 141(1) of the Negotiable Instruments Act, 1881 covers the association and those who were both in charge of and responsible to it for conducting its business at the…

Choose your answer

An association of individuals commits an offence under section 138 of the Negotiable Instruments Act, 1881. For this question, a responsible manager is a person who, at the time of the offence, was in charge of the association's business and responsible to it for its conduct. Who is deemed guilty under section 141(1), subject to its provisos?

Select one answer
Answer and explanation

Correct answer A

Section 141(1) of the Negotiable Instruments Act, 1881 covers the association and those who were both in charge of and responsible to it for conducting its business at the relevant time. The Explanation includes an association of individuals within the term company. The first proviso protects a person who proves lack of knowledge or due diligence to prevent the offence.

Option feedback

Option A

Section 141(1) covers the association and persons satisfying both statutory conditions at the time of the offence.

Option B

This leaves out the association, which is the principal offender.

Option C

Membership alone does not satisfy the two statutory conditions.

Option D

An office title alone does not satisfy the two statutory conditions.

Practice for these exams

Related exam syllabi

Related questions in this topic