When a company commits an offence under section 138 of the Negotiable Instruments Act, 1881, who is…
Section 141(1) includes the company and each person in charge of and responsible to it for conducting its business at the time of the offence. An individual covered by the…
Choose your answer
When a company commits an offence under section 138 of the Negotiable Instruments Act, 1881, who is deemed guilty under section 141(1), subject to its provisos?
Answer and explanation
Correct answer C
Section 141(1) includes the company and each person in charge of and responsible to it for conducting its business at the time of the offence. An individual covered by the subsection can prove lack of knowledge or due diligence, and a separate proviso protects specified nominated directors.
Option feedback
Option A
Holding a director’s title does not by itself satisfy both conditions in section 141(1).
Option B
Share ownership alone does not establish responsibility for conducting the company’s business.
Option C
Section 141(1) covers the company and those meeting both role requirements when the offence occurred, subject to its provisos.
Option D
The accountant’s title alone does not satisfy both role requirements.
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