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In which of the following cases did the Supreme Court hold that under Section 141 of the Negotiable…

In Aneeta Hada v. Godfather Travels & Tours Pvt. Ltd. ((2012) 5 SCC 661), a three-Judge Bench of the Supreme Court settled the law under Section 141 of the Negotiable…

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In which of the following cases did the Supreme Court hold that under Section 141 of the Negotiable Instruments Act, 1881, arraigning the company as an accused is imperative (sine qua non) for prosecuting other persons, as the liability of the Directors/Officers etc. is vicarious and flows from the liability of the company/firm?

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Correct answer D

In Aneeta Hada v. Godfather Travels & Tours Pvt. Ltd. ((2012) 5 SCC 661), a three-Judge Bench of the Supreme Court settled the law under Section 141 of the Negotiable Instruments Act, 1881 (overruling Anil Hada v. Indian Acrylic Ltd., (2000) 1 SCC 1) and held that the commission of an offence by the company is an express condition precedent to attract the vicarious liability of others. Consequently, for maintaining a prosecution against directors or officers under Section 141, arraigning the company as an accused is imperative (sine qua non). By contrast, Narsing Das Tapadia v. Govardhan Das Partani ((2000) 7 SCC 183) and Saketh India Ltd. v. India Securities Ltd. ((1999) 3 SCC 1) relate to cognizance and computation of the limitation period under Section 142 of the Act.

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